Farming and agriculture are interconnected with many other sectors of the economy and can have impacts on real estate, the cost of food and other products, and the overall security of a nation. Emerging from the pandemic, we are seeing new trends take hold in the industry, which will likely drive growth and development over the next few years.
Attracting New People
This has been a challenge for the industry over the past few decades. It is difficult to offer sufficient remuneration to get qualified people into the industry, as many graduates are already in plenty of debt. Youth also prefer to take on jobs other than farming. However, post-pandemic, with many young people have returned to their rural roots, there is significant potential for new blood in the industry.
Small Farms May Shine
While large farms are not going anywhere and will continue to grow, there is plenty of opportunity for small farms, particularly in the post-pandemic environment. With logistics and supply chains facing major disruptions, small farms are better positioned to cater to local demand. People are also becoming more aware of the benefits of growing and consuming locally, and many governments are offering incentive programs to bolster food security in the wake of the pandemic.
Animal Vaccines
We are seeing increased demand for animal vaccines and increased adoption of this marvel of modern technology. The pandemic has illustrated the need to keep livestock disease-free and prevent widespread outbreaks.
Technology
Technology is coming to the farm. Crop monitoring technology using drones, for example, is now gaining traction in many parts of the developed and developing world. The collection and distribution of local weather and other data is also increasing, helping farmers to better plan out their activities. A trend towards direct-to-customer sales approaches using digital media is also on the rise, potentially providing lucrative opportunities for small farms to access a wider market.
Tariffs and Controls
There is potential for increased tariffs and controls in the future, especially as countries move to either protect their local production chains or incentivize imports or exports as necessary. A lot of imbalances have been created by the pandemic and shifts will be seen as a new equilibrium is achieved.
Hemp
Hemp and marijuana are becoming legalized in the US and some other countries. This is a trend we expect to see continue and spread. This could potentially be the next major boom sector within agriculture.
Sustainable Water
Without water, there is no agriculture and this is a resource that is now in limited supply. Thus, we are seeing a trend towards water recycling and reuse. How farmers source water is also changing, with many moving to local sourcing.
