Farmland investment seems to be all the rage these days. More and more people are buying land and are renting it out to farmers to earn sizeable returns. But what you don’t realize is that for every success story there are thousands of cases where people invested in farmland and failed miserably.
To make sure that you don’t suffer the same fate as them, we’ve drafted a concise guide to farmland investment. This farm investment aims to give you the information you need to know before you get your hands dirty.
The first step of investing in farmland is land acquisition. As Mark Twain once said, ’Buy land, they’re not making it anymore’. But land acquisitions aren’t as easy as you think. There are many factors you need to consider before you buy the deed of a piece of land.
First and foremost, the land you’re looking to acquire must be able to grow the crops that you plan to plant.
Factors like soil fertility, humidity, temperature, and moisture etc. dictate whether your land is capable of cultivating the crop you plan to grow.
Secondly, make sure that the land you’ve acquired is not caught up in any legal disputes. Legal matters take years to resolve and can stunt your progress.
Go Big or Go Home:
Secondly, be mentally prepared to invest a lot of money in your farmland project. Most people play it safe and acquire small lands and use them for agriculture. The problem with this tactic is that small farmlands are incapable of producing a sizable cash flow.
Therefore, you must be able to purchase 80 acres or more of land for your farmland project. Lands this vast are easy to rent out and are a sure-fire way of earning massive profits.
Consider Buying a Farmland Fund:
We offer this advice to people who don’t want to work in the fields themselves. If you would like someone else to run your farm for you or if you can’t afford to buy the land by paying cash upfront; try getting a farmland fund.
Depending on the banks in your country, there’ll be a variety to choose from. Most of these funds charge a small initial fee and a sizeable annual management fee so remember to read the fine print before you put pen to paper.
Are you looking to invest your money in Belize’s agricultural sector? We at TKO Farms Inc. would love to serve you! Our clientele is full of people we’ve helped in the past.