Tips On 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.Delve deep into finding out the pros and cons, check out what other investors are saying on the same.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.
After going through the steps above, currently seek out the land where you intend to plant the plantation. The crop you have chosen to work with on the plantation automatically dictates the location of the land.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.
The workforce to be used to put together this venture is vital to consider. Listen from the ground and make a decision based on the facts you will collect from other land owners on how they operate. Consider the option of leasing over buying of equipment needed at the farm.Is there skilled workforce in the locale to handle the equipment?What is the going rate for compensation?
The plantation requires Seedlings, fertilizers, pesticides and chemicals that is not far. Purchasing in bulk is usually a safer bet when handling a plantation as this assures no emergencies occur along the way. Any outbreak on the crops can make or break your plantation, remedies ought to be within reach.
Insurance is very important for this venture just like any other. Research on what insurers offer on plantations. 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.
Capital is essential, it literally holds all the tips mentioned above together. Evaluate after considering the above factors, how much capital you need. Securing capital might prove to be a task if you had not set aside the figure required, therefore consider shareholders. Relieve undue stress off investors or causing havoc on the crops by lacking one item or another due to lack of enough funds.