Tips On Investing In Plantations.
Large scale farming of cash crops like coffee, tea, pineapples, sisal, cane, pyrethrum, cotton and many more is what is known as plantations. Large scale farming is just as good an investment as any other in the market. If anything even better, because you can track growth literally from the ground up.
Find out all that you can on plantations.Evaluate the benefits of this venture and seek out the other similar investors and hear what they have to say.Read more about what cash crop you are interested in, seek advice from the suitable parties.
Make sure to choose a cash crop that you know much about and also one that will flourish where you are. Tropical plants like pineapples will only give you a good produce when you have planted them in tropical zones while those like tea will be at their best in highlands. You will need to also survey the location and determine the type of soil and what it is good for before deciding on the plant you will work with.
Upon the checking of above, now identify the land of which you intend to invest in. The crop you have chosen to work with on the plantation automatically dictates the location of the land.Weigh out the pros and cons of leasing the land or purchasing the said 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.
Put in mind the fact that laborers are key. Find out from the other land owners what they do and how they work. 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?
Seedlings, fertilizers, pesticides and chemicals needed must then be near the plantation or at least locally available. Purchasing in bulk is usually a safer bet when handling a plantation as this assures no emergencies occur along the way. Immediate remedies can be a determiner between success and failure of your plantation.
Insurance is very important for this venture just like any other. 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. Be wise and get your plantation covered.
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. 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.