Where To Start When Investing In Plantations.
Farming of cash crops like coffee, tea, pineapples, sisal, cane, pyrethrum, cotton and many more in huge chunks of land at a time is known as plantations farming. Investing in this genre is as good as investing anywhere else. If anything even better, because you can track growth literally from the ground up.
Research as much as possible on plantations.Evaluate the benefits of this venture and seek out the other similar investors and hear what they have to say.Education on the cash crop you have picked out is important and advice from the necessary teams that have impact on the plantations one way or another.
Next is to seek out a category that suits the niche of your understanding and also the climate. Tea plantations will do well in highlands while pineapples excel in tropical areas. Before anything, make sure to examine the area and look at the climate, know what will do well in that kind of soil and what will not.
Upon the checking of above, now identify the land of which you intend to invest in. The location of the land is determined by the crop you have chosen.Deliberate the good and the bad of choosing either an outright purchase or leasing of the land.If it makes more sense to go with either one or another, then check if the same is acceptable with the land owner and come to an agreement.
Laborers is also a key item to consider. It will be wise of you to consider getting information from other land owners, this will in turn help you make the right choice. Consider the option of leasing over buying of equipment needed at the farm.If using machines, are there skilled laborers to handle the machines in the locale?Check around to see the payment terms and figures.
The plantation requires Seedlings, fertilizers, pesticides and chemicals that is not far. In case of emergencies it is imperative to purchase in bulk. Immediate remedies can be a determiner between success and failure of your plantation.
Just like any other investment consider insurance with the weight it deserves. Consider having your plantation insured and do your due diligence in hunting one that best suits you. Insurance companies are always fighting to remain relevant and as thus, there are numerous of them now covering agricultural ventures. You can never go wrong with insurance as it is a win win.
As in any venture, capital is the most important factor to consider. Calculate how much capital you require for the plantation. Be it that the amount was set aside already or if it requires other shareholders to start off the project, be ready financially. so as you don’t fall short along the way and cause havoc either on the crop or in causing undue stress on the investors.