The outbreak of the deadly CoronaVirus and its spread across the world has forced the oil market to a near standstill, leaving crude oil price to crash.
Crude oil prices dived into the negative territory due to a collapse in demand caused by the CoronaVirus pandemic and a lack of storage capacity for excess supply.
Agricultural prices, however despite the pandemic have risen drastically due to higher demand for produce.
Have you ever imagined what the world will look like without agriculture or having insufficient food supply? Well, we all know what a disaster that would be.
Looking back over the years, crude oil has been one of the major sources of revenue and economic status of different nations of the world.
But within a short period time, there was a tremendous fall in value and a result of the pandemic. This indicates that although crude oil generates revenue, it has no reliable or guaranteed unchanging value.
The currently low oil prices are a serious problem for oil investors in Nigeria as prices are perilously close to per-barred cost of production to many operators, but then the decrease in the price of crude oil has given way to a significant rise in the price of agricultural commodities, thanks to our new economic realities.
Looking at agriculture on the other hand; it’s a low-risk investment that keeps pace with inflation and increases in value over a long-term as a result of its unending demand. It is a tangible asset that benefits the world at large.
A wise man once said “ agriculture is one endeavor that will never lose value, and it is an open door that will neither be shut at day nor night as long as the earth remains because eating is a must” now is the right time to invest more on agriculture as an individual investor and as a nation. A trial will convince you.
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