5 Reasons to Make Agricultural Investment
1. Food is not only a basic necessity for human survival but also a means to ensure a country’s sovereignty. More agricultural investment means higher agricultural production and therefore higher levels of inventories. It also means lesser foreign exchange spent on imports from abroad. We recommend agricultural investment because it is safer for the individual making the investment and for the country because it protects national endeavours, especially during a war or famine.
2. Food consumption is on the rise and there is a steady growth for cash crop produces. India and China, the two most populous nations on the earth are adding more middle-class families who are upwardly mobile and spend more on nutrition. It is estimated that people in the two countries have already doubled their per capita consumption in the last decade. Though this may be far less compared to the countries in the west. It is predicated that people all over the world will be consuming 3 times more than what it is today.
3. Demands for biofuels will rise in non-oil producing countries. As we all know the quantity of fossil fuel is limited and non-renewable, there will be a major thrust towards using biofuels – meaning that the fuels of the future will be produced on farmlands and not in the gas fields. There is virtually no country around the world that does not have farmland-based biofuels programmes. India and China are among the top countries that encourage agricultural investment for producing biofuels. India has a distinct advantage here because it receives sunshine around the year.
4. Quality top soil is becoming a rare commodity making fit-for-farming lands more expensive. If you are contemplating agricultural investment in the form of land, I will personally recommend this because, arable land is in short supply even now. This shortage is like to become more acute in the immediate future and if you have even some of it, you should be able to make a decent profit by investing on it. The other advantage is bank credits on agricultural land comes at discounted rates with fewer formalities to follow. You will also benefit from agricultural investment related subsidies from state and central government. Profits derived from agricultural investment is generally not taxed.
5. You have ample scope to innovate, ideate and implement in agricultural activities. Though you may tempted to believe that it is essential to own large tracts of land for achieving economies of scale in agricultural investments, facts are otherwise. Farmlands as small as 25 cents are practical to own and operate. In fact many corporate companies in India are promoting agricultural investment by introducing cooperative farming for produces such as Barhi dates cultivation. This makes it easier to produce, adopt modern farming techniques, process produces for higher value and finally sell for better prices. It is all advantage in which everyone benefits.
Small-scale Agricultural Investment: Barhi Dates Cultivation in South India
As we said earlier, it is a myth that one needs to own large tracts of land to be successful in agricultural activities. Multiples of companies have sprung up that make it possible to make agricultural investment that give high rates of return with little effort. A typical example is Barhi dates production in Southern India promoted by Golden Groves.
Salient Features of the Project:
1. Close to Coimbatore – a major metropolis of South India with access to more than 3.5 million consumers for dates.
2. Scientific methods of Barhi dates cultivation – uses the latest technology that saves on water consumption, planting techniques, crop selection and overall management of production and reaching to consumers.
3. Smaller plots of agricultural farmlands – Agricultural investments can be made for small plots of farmlands (as less as 25 cents of land).
4. Cooperative farming techniques – Uniquely you will own a farmland within a major community that have all taken to Barhi dates production. You save on technology cost acquisition, harvesting, processing and adding values and getting best price for you products. It is all advantage in which you need to spend little time or efforts.
5. Inter crop farming – This allows you to make an additional profit while your major crop is waiting to grow and yield profits. The climate is congenial to producing speciality peppers that command high market value. The option is yours though.
Agricultural Investment: For Whom?
Agricultural investment is generally not at risk like other investments. The advantage is that investors are able to make a reasonable profit on their investment, see their investment grow in value and generally is easy to liquidate to raise cash. This means it fits in the plans of those who are:
1. Returning back to India after a stint abroad
2. Have some surplus cash that they would like to invest
3. Want a safe investment venue with higher yield
4. Want a property close to a major city
5. Want to raise cash at short notice for meeting exigencies
6. Want a farmland for relaxing and enjoyment