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. Any other investment that returns well might just as well be in this field. If anything even better, because you can track growth literally from the ground up.
Investigate the venture thoroughly.Explore profoundly on the advantages and disadvantages of this venture, checking the reviews of other investors.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.
Make sure to choose a cash crop that you know much about and also one that will flourish where you are. Tea plantations will do well in highlands while pineapples excel in tropical areas. 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.
Checking to see where the land for planting is, is next. The location of the land is determined by the crop you have chosen.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.
The workforce to be used to put together this venture is vital to consider. Find out from the other land owners what they do and how they work. Mull over the options of either buying or leasing of equipment for use in the 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. Bulk purchase of the Seedlings, fertilizers, pesticides and chemicals is very important to be armed in case of emergencies. Immediate remedies can be a determiner between success and failure of your plantation.
Insurance is very important for this venture just like any other. Research on what insurers offer on plantations. In this economy, what separates an insurance company from the rest, is variety including agricultural investment. You can never go wrong with insurance as it is a win win.
It is critical to put in mind the importance of capital. After evaluating all the above, seek the capital needed. 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.