Quick grab your checkbooks and buy farmland. Right this minute! Here’s why.

• The world population is projected to explode from 6.8 to 9.0 billion people
• Improvements in crop yields are slowing
• Incomes are growing, driving people to consume more protein (i.e. meat) rather than plants
• Arable land is being lost to development and pollution.
• Spikes in fuel prices and inclement weather make traditional farming even more challenging.

The “caloric needs for the planet will soar some 50% by 2050, driven by population, wealth and diet as well as biofuel demand,” said Bruce Kahn, Ph.D. and an analyst at Deutsche Bank.

Welcome to the world of Agriculture 2.0, where nearly overwhelming challenges—doomsday scenarios some might say—actually represent an important investment opportunity.

Forget about the next version of the iPod Nano or whether Twitter will ever make money—the solutions the entrepreneurs at Agriculture 2.0 envision could determine the long-term viability of our species.

Good Food Can Be Good Business

In addition to entrepreneurs, this day-long conference on Wall Street attracted farmers, scientists, academics and investors. 150 people all focused on sustainable and alternative agriculture.

Compared to the recent Slow Money conference in Santa Fe, a movement merging investing with philanthropy, Agriculture 2.0 was more about business margins, management teams, investment returns and exit scenarios. And, yes, everyone got along.

The fact is when faced with the huge challenges listed above and the money we spend on food per year—$1.7 trillion annually—this conference is worthy of attention.

The standard issue venture capitalists were not there. As Andy Ziolkowski, an investor at Midpoint Food & Ag Fund, pointed out, most venture capitalists started out in the technology sector. They continue to be based on the coasts and prefer to invest near where they live and work. (Call them the original locavores.)

By comparison, agriculture tends to be based in the Midwest and in central California and in places like India. While the farmers I meet display an amazing blend of business smarts, management skills, focus, determine, science and intuition, farming is seen as ‘old school’ by some investors.

It’s just not true. Whether running an organic vegetable farm or sourcing and breeding heritage-breed beef cattle, the number of decisions that the typical farmer makes every day and every season is staggering.

So it was good to see that the technology and innovative thinking on display from some of the best and the brightest and, hopefully, some of the deepest pockets.

We heard from companies pitching land-based aquaculture, urban rooftop gardening, soil enrichment products that boost yields by 20% and more. Others offered franchise opportunities that through programs, education and consulting would allow would-be sustainable farmers and restaurateurs to get off the ground faster.

In some cases cutting-edge science was on display. More often it was the application of existing technologies and techniques applied in innovative ways.

Making Money on Farming

The returns the investors in the room were looking for may have a longer time horizon—5 to 7 years rather than 3, on average—but they certainly are comparable to their Silicon Valley brethren.

Ziolkowski believes he can generate returns similar to typical high tech and health investments, or a 10-time return on capital invested over five years.  Arrun Kapoor of SJF Ventures, a cleantech and positive impact venture capital fund, projected a 5X blended return across his portfolio.

By investing in farmland that generates revenue and appreciates in value, Diana Glassman of EBG Capital, a Swiss fund-of-funds specializing in cleantech, alternative energy and sustainable agriculture, believes she can provide structure investments that appeal to investors at every risk level.

Janine Yorio Newseed Advisors

The founder of the conference Janine Yorio, said “most investors were initially skeptical about Agriculture 2.0. But over a dinner that followed the conference every single investor said the event was much better than they had expected. Many would actually invest in several of the companies that presented. Agriculture 2.0 alerted them to the breadth and potential in the industry.”

This is capitalism at work: less Slow Money and more Folding Money. While every company might have had a sustainable or organic wrapper, I was concerned when talk shifted to metric tons—big as a measure of success.  Investors invest in “businesses that can scale.”  You know . . . grow.

But I would like to think back to the early dot-com days where a strong brew of idealism, enthusiasm and a new generation of dreamers, most working on tiny budgets, created thousands of innovations and new communities. Some toiled in hopes of a big payday. But many were inspired by the thrill of building something new. I was there and it was an electrifying moment.

I hope that the same time, attention and, yes, enthusiasm gets piled on top of farming. Like a farmer trying out new seeds, some ideas would flourish. Some would fail. But the spirit of innovation and recommitment to farming would be amazing turning point in our country.

In the next post on Agriculture 2.0, I’ll pick a handful of companies that I would put my money into.