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. Investing in this genre is as good as investing anywhere else. 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.Read more about what cash crop you are interested in, seek advice from the suitable parties.
Another thing you will need to do is look for the crop that will do well in your climate zone and also something you have knowledge of. For example a tea plantation cannot be planted in tropical zones, nor can a pineapple farm do well in highlands. Do a feasibility study to identify the climate, what the soil is appropriate for and what it needs.
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.If leasing makes more economical sense than buying, then talk to the land owner and agree on the course of action.
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?Check around to see the payment terms and figures.
Consider the closeness in terms of distance of the pesticide shop that can handle the plantation’s chemicals, seedlings, pesticides and fertilizers. Purchasing in bulk is usually a safer bet when handling a plantation as this assures no emergencies occur along the way. 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. Competition is rife with insurers, there must be one out there that covers agricultural enterprises. Be wise and get your plantation covered.
It is critical to put in mind the importance of capital. Evaluate after considering the above factors, how much capital you need. You may need shareholders to meet your capital target or you may probably have set it aside but be ready financially. Enough funds are important so you do not have a shortfall of requirements on the plantation leading to heightened stress levels of investors.