Strategic Wealth Building
Here are some additional benefits that you will enjoy from including an allocation to coconuts as part of your long term wealth building strategy.
Demand is the easiest factor to understand. You don’t need to know anything about agribusiness to grasp it. A combination of the internet and booming health food trends, has spurred demand for several previously ignored or unknown foods. Think of quinoa, chia seeds, kale, or pomegranate. Now with coconut, the last decade has seen a significant spike in demand, thanks to the popularity of things like coconut oil, butters, hair and beauty products, among others.
For investors, this increased demand has turned what was historically considered to be a moderate-margin cash crop into one that can deliver an excellent ROI.
This environment is ripe for prudent, informed investors and growers. A sustainable, long-term coconut development can yield both a more efficient market, and a better quality of living for local coconut growers. With this, local growers are able to generate a higher, steadier income for their families. And investors in coconut agribusiness benefit by leveraging margins of scale, and by cutting out the unethical business practices that growers have historically encountered.
Yield on managed agriculture is typically better than returns you can earn with many other fixed income investments. Agriculture is also a hard asset class that can not be manipulated by Wall Street in the way an ETF could be. Additionally, owning farmland in your own name is a way of owning non-reportable foreign real estate. Typically, an investment in a coconut plantation takes several years to begin generating revenues. That could mean owning the underlying land without having to report the interest for taxes. A qualified tax professional should be consulted in order to determine the tax implications that apply to you in this case.