Tips On 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. 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.
Next is to seek out a category that suits the niche of your understanding and also the climate. 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.
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.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.
Put in mind the fact that laborers are key. It will be wise of you to consider getting information from other land owners, this will in turn help you make the right choice. If machines are to be used which is highly advisable, again is leasing an option or must be an outright purchase?Is there skilled workforce in the locale to handle the equipment?Find out the wage.
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. Any outbreak on the crops can make or break your plantation, remedies ought to be within reach.
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. 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. Evaluate after considering the above factors, how much capital you need. Securing capital might prove to be a task if you had not set aside the figure required, therefore consider shareholders. 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.