What To Consider 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. Large scale farming is just as good an investment as any other in the market. The fact that one can evaluate the progress from the ground up makes the investment definitely worthwhile.
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.Whatever cash crop you have finally picked out to invest in, ensure you have garnered enough education and advice from appropriate angles.
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. 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.
Checking to see where the land for planting is, is next. 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. If machines are to be used which is highly advisable, again is leasing an option or must be an outright purchase?Is there skilled workforce in the locale to handle the equipment?Check around to see the payment terms and figures.
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. 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. Visit an insurer and find out what they offer for this kind of plantations. 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. Be it that the amount was set aside already or if it requires other shareholders to start off the project, be ready financially. Relieve undue stress off investors or causing havoc on the crops by lacking one item or another due to lack of enough funds.