Tuesday, April 22, 2008
I came across an article in SmartMoney about agriculture plays that was interesting. I agree with the premise that food is not going to get cheaper and that materials needed to grow food, at least following the large-scale, industrial model, will continue to drive the cost of certain raw materials like fertilizer. The companies the article suggests we invest in are Agrium (AGU), Mosaic (MOS) and Potash (POT). All of these companies produce ingredients for fertilizer. I guess my question boils down to an ethical dilemma: is it ok to invest in a company that you think will make you money even if, principally, you disagree with what it does. I'm not saying that I necessarily disagree with what these companies produce. However, being that I am a proponent of small-scale, farming that uses organic methods of fertilizing and dealing with pests, it is hard for me to be enthusiastic about investing in anything that sells to mega-agribusinesses. Anyway, your thoughts are welcome.