‘Ag-Boom II’

How one easy-to-buy US stock is on the cusp of solving humanity’s oldest problem

Peak GoldDid you know that Bill Gates is now the largest private holder of agricultural land in the US?

That’s the first and biggest clue that something huge is afoot.

There’s a huge opportunity, too.

A problem as old as human history is about to be solved.

In fact, this problem defined civilisation from its early beginnings to where it is now.

That’s why the first known example of a written human name, Kushim, was that of an accountant or ‘bean counter’. 

Kushim’s problem is still our problem: 

The problem of putting food on the table. 

Which is why today I’m going to give you the cold hard facts about the challenges facing the world’s food supply chain.

And one company that is helping us not only meet this challenge…but rid the world of it forever. 

No hyperbole, no BS…

Just one investment opportunity with
bona fide exponential potential

The solution to the food problem lies in technological megatrends we follow closely — Big Data, automation, and AI. 

These megatrends are only now starting to collide with farming. 

And the company we’ve found is right at the heart of this collision.

I believe it may prove to be a stock to hold for the next decade

Let me give you the background… 

According to the UN, we will need 50% more food by 2050. 

Food needs water. 

And 70% of all freshwater is currently going towards food — meaning we will need to pull a big rabbit out of the hat to accomplish one of the most basic tasks necessary to sustain our lives. 

Eating. 

According to the company we are recommending today, they can reduce the use of water needed to grow their products by 90%. 

That’s just one of their competitive advantages they have as they go up against more than two millennia of farming knowledge and expertise. 

And if they crack the code and build a scalable global model — you may just be able to get in early on one of the largest companies to ever grace the NASDAQ. 

Welcome to ‘Ag-Boom II’ —
the second agricultural revolution

Now, straight up, I am NOT going to reveal the details of this stock in this free-to-the-public edition of my report.

If that’s unacceptable to you, no problem, simply hit that ‘X’ in the top right corner of your screen.

This company is the latest recommendation in my monthly advisory, Exponential Stock Investor.

Quite rightly, the key details are reserved for my paying members.

That said, you can get every detail at the bottom of this letter by stepping underneath the velvet rope and becoming a subscriber today. The (extremely reasonable) fee you’ll pay is fully refundable in those first 30 days of your membership.

The purpose of this free edition of Exponential Stock Investor is to give you a great insight into the opportunity I see ahead…and why the stock at the heart of it warrants your immediate attention. And hopefully it convinces you to take the next step!

I call this entirely new megatrend ‘The Second Agricultural Revolution’. And it lays the foundations for a massive and emerging investment theme going forward. 

We think this is the first of many opportunities coming out of it. And there are a number of factors driving it.

These are: 

  • Commodities boom (which includes agricultural products) caused by ‘super-hot’ inflation 
  • Degradation of natural resources, ie: water, soil, total arable land, and the potential for climate change impacts 
  • The ‘middle-classification’ of the world brought on by changes in demographics. similar to the Chinese Middle Class thesis — this time on a global scale, which in turn will alter consumer preferences 

Now, let’s unpack these factors, one by one…

#1. Mining boom takes the spotlight but Ag-Boom II is under the radar, for now

Australia is known for its rich mining history.  

So around August 2020 when we came up with our ‘Supercell’ thesis — well before the mainstream was even talking about ‘super-hot’ inflation — we started picking well-placed ASX-listed mining companies. 

The Supercell thesis was that ‘super-hot’ inflation (or even just the fear of it) would drive commodity prices higher. 

It was a broad-based commodities thesis, meaning that it wasn’t restricted just to mining stocks and an ensuing mining boom. 

But the problem is, there are very few ways on the ASX to get a piece of the agricultural commodity boom that we are seeing unfold.  

Which is why the stock we are picking today is such a ripper. 

For now though... 

Check out the corn price chart over the last 12 months: 

Secret Crypto Network

Source: Tradingeconomics.com

Nuts, we know.

Soybeans?

Check it out:

Secret Crypto Network

Source: Tradingeconomics.com

Hectic — same story. 

Wheat? 

Here you go: 

Secret Crypto Network

Source: Tradingeconomics.com

We could go on and on. 

We’ll spare you that, promise. 

The thing to remember here, is that as money gets pumped into the system like a dam — the prices must eventually rise. 

Supply chain disruptions are part of the story, to be sure. 

However, what we are seeing at the moment is a broad-based commodities Supercell form before our eyes. 

Heck, even oil is in on the march higher as much as everyone hates it. 

The legacy oil system though, comes with the baggage of centuries of human advances that cost the planet a lot. 

Which brings us to our next point…

There are too many of us! And we’ve made a right hash of our planet. 

#2. The environment is going to the dogs, which is why this company is so exciting

The climate is certainly part of the equation — we don’t care where you stand on that. 

What’s really driving this pick and the megatrend we are calling ‘The Second Agricultural Revolution’ is the degradation of our planet’s natural resources. 

Take research from the UN IPCC (United Nations Intergovernmental Panel on Climate Change), which says in a note of a recent report that: 

Soil erosion from agricultural fields is estimated to be currently 10 to 20 times (no tillage) to more than 100 times (conventional tillage) higher than the soil formation rate (medium confidence).’ 

Medium confidence of that 100 times factor may not get you over the line if you are a sceptic. But that conservative ‘10 to 20 times’ factor alone, means we are losing good soil fast. 

Forget the atmosphere — this is about dirt. 

It’s partly why fertiliser companies like the budding Lorem Ipsum [ASX:] could be such good business. 

We digress though.

The point is you need good soil to grow good crops to make good money. 

Also consider this — ‘Nearly 33% of the world’s arable land has been lost to erosion or pollution in the last 40 years.’ 

That’s from the Grantham Centre, which is a part of the University of Sheffield. 

Duncan Cameron, who is a Professor of Plant and Soil Biology, says the following (emphasis added): 

Erosion rates from ploughed fields average 10-100 times greater than rates of soil formation and nearly 33 per cent of the world’s arable land has been lost to erosion or pollution in the last 40 years...this is catastrophic when you think that it takes about 500 years to form 2.5 cm of topsoil under normal agricultural conditions. A sustainable model for intensive agriculture could combine the lessons of history with the benefits of modern biotechnology.’ 

His buddy, Colin Osborne — Professor of Plant Biology at the same centre — says the following (again emphasis added): 

‘“Historically, good soil management was supplemented by the collection and application of ‘night soil”, which is human excrement — a practice that continued into the 20th century. 

In a historical example of the circular economy, this closed the nutrient loop, recycling organic nitrogen and phosphorus back into soil. 

sustainable soil-centric reengineering of the agricultural system would reduce the need for fertiliser inputs and pesticide application, and require less irrigation, thus contributing towards safeguarding finite natural resources.’ 

That’s right — part of the problem is that we are flushing the good (nitrogen-packed) stuff down the drain. 

Regardless, there’s an even bigger part of the equation that goes into food on the table. 

Water. 

Remember, according to the UN, around 70% of all freshwater is already dedicated to farming. 

Across the board, the world’s natural resources our stretched. 

We’ll get to the unique competitive advantage Lorem Ipsum [ASX:] has in this area in just a moment.

What we really want to focus on right, now though, is the choices that consumers are making due to demographic shifts. 

This is where the jigsaw starts to fall into place. 

#3. The ‘middle-classification’ of the world means
this company’s premium products
are a status symbol

Everyone in the US thinks they are middle class — some 70% of them as of a few years back.

That doesn’t pass the pub test and reveals the Yanks’ idealistic visions of themselves. 

But much of the world lifted itself out of poverty this century. 

That was the reasoning behind our ‘Chinese Middle Class’ thesis, which didn’t work out due to a strained diplomatic relationship. 

It doesn’t mean there can’t be a global middle-class thesis, however. 

You make a bit of money and all of a sudden you want nicer things. 

Human desires for products are malleable and tied to wallet size. 

Millionaire? Better buy that jet ski or yacht. Recently got a steady job? Maybe less noodles and more fresh fruit and veg. 

Buying these things are a status symbol that feeds the ego.

And one of our current tips plays on exactly that.

We’ve highlighted Lorem Ipsum [ASX:] and their prospects with the fastest-growing middle class in the world — the ASEAN nations. 

That’s basically Southeast Asia. 

That’s borne out in the graphic below: 

Secret Crypto Network

Source: World Economic Forum

The pandemic took a chunk out of the global middle class, according to the Pew Research Centre. 

A vaccine-driven recovery and a flood of cheap money could change that, despite the fuzzy metrics which measure what being middle class really is. 

The takeaway point is this — global prosperity is driving consumer choices. 

People aspire to premium products and a better lifestyle. 

It sounds cliched, but it’s part of the reason Amazon bought Wholefoods — Amazon chief Bezos knew that there was a growing desire for fancy groceries.  

And as we are sure you’re aware, there’s a groundswell of support for previously niche grocery products. 

Kale, quinoa, etc. 

And we think this company’s products fit really well with the premium produce movement too.

For example, think of this from an Australian perspective... 

The success of the a2 Milk Company Ltd [ASX:A2M] was built on a Chinese middle-class desire to avoid domestic supply of products viewed as inferior, in favour of the ‘clean and green’ Aussie milk. 

Perceptions of health are perhaps even more important than whether the health benefits are real or not, at least from a financial perspective. 

This is what brands are made of, perception. 

It’s why marketing exists as a discipline. And this company has a huge celebrity backer on its board promoting the product.

So finally, now that you have the context and build up, it’s time to get to exactly what our latest recommendation does. 

And you can do that — along with access to the full buying instructions for this remarkable stock, by clicking here…

Good investing,

Ryan Clarkson Ledward

Lachlann Tierney,
Editorial Analyst,
Exponential Stock Investor

Ryan Dinse Signature

Ryan Dinse,
Editor,
Exponential Stock Investor