A Fertile Investment Idea
Fertilizer makers have generally underperformed the overall market over the last 12 months; however, they are well-positioned for the long term.
Hundreds of millions of people in the developing world are moving out of poverty. As they do, they will demand, and be able to afford, more protein and a higher quality and quantity of food. Given the growing overall world population and a limited amount of arable land, producers of products that boost food output per acre hold the catbird's seat over the long term. Fertilizer is a key component to boosting crop yields because 40% to 60% of yield is determined by crop nutrients. I particularly like North American fertilizer makers to benefit from this secular trend. They are in close proximity to some of the most productive arable land in the world in the Midwestern U.S. and in Canada. They also have access to the lowest cost natural gas in the world, and this input usually is at least 20% of operating costs....231 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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