Where To Start When 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. Any other investment that returns well might just as well be in this field. A good investment is known by its growth, this one is even more actual as you get to see every step of the growth.
Investigate the venture thoroughly.Delve deep into finding out the pros and cons, check out what other investors are saying on the same.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. Do a feasibility study to identify the climate, what the soil is appropriate for and what it needs.
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.
Put in mind the fact that laborers are key. 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?Find out if there exists skilled hands 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. In case of emergencies it is imperative to purchase in bulk. If there is an outbreak of sorts on the crops, there needs to be an immediate remedy.
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. 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. Relieve undue stress off investors or causing havoc on the crops by lacking one item or another due to lack of enough funds.