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. 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.Explore profoundly on the advantages and disadvantages of this venture, checking the reviews of other investors.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.Consider the advantages and disadvantages of either leasing or buying the said land.Discuss and agree with the land owner of whichever option you seem fits you.
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. 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?
Consider the closeness in terms of distance of the pesticide shop that can handle the plantation’s chemicals, seedlings, pesticides and fertilizers. 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.
Just like any other investment consider insurance with the weight it deserves. 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. Being safe is always far better than being sorry.
As in any venture, capital is the most important factor to consider. Calculate how much capital you require for the plantation. You may need shareholders to meet your capital target or you may probably have set it aside but 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.