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October 29, 2017

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. If anything even better, because you can track growth literally from the ground up.
Find out all that you can on plantations.Delve deep into finding out the pros and cons, check out what other investors are saying on the same.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. Tea plantations will do well in highlands while pineapples excel in tropical areas. Do a feasibility study to identify the climate, what the soil is appropriate for and what it needs.

Upon the checking of above, now identify the land of which you intend to invest in. The location of the land is determined by the crop you have chosen.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. Listen from the ground and make a decision based on the facts you will collect from other land owners on how they operate. Mull over the options of either buying or leasing of equipment for use in the purchase.If using machines, are there skilled laborers to handle the machines in the locale?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. Bulk purchase of the Seedlings, fertilizers, pesticides and chemicals is very important to be armed in case of emergencies. 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. Consider having your plantation insured and do your due diligence in hunting one that best suits you. In this economy, what separates an insurance company from the rest, is variety including agricultural investment. Being safe is always far better than being sorry.

Capital is essential, it literally holds all the tips mentioned above together. Calculate how much capital you require for the plantation. Securing capital might prove to be a task if you had not set aside the figure required, therefore consider shareholders. Relieve undue stress off investors or causing havoc on the crops by lacking one item or another due to lack of enough funds.

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