Is investing in farmland a smart option?

Is investing in farmland a smart option?

November 26, 2019 1 By Beyond Posts

Investing is one of the widely accepted methods to create wealth. Be it a small or medium-income holder, everyone is in the thought of earning a bit extra some to save for the future and rest of us to create the wealth. To fulfil this motive, people research for multiple options such as mutual funds, bonds, FD, RD, and other schemes available in the market. But investing in farmland is often ignored as investors are not educated accurately about the benefits of investing in a farm. Here we have combined a short guide to putting light on the fact that a plethora of advantages accompany farmland. 

Reasons why investing in farmland is smart-

Recession-proof investment– World’s population is growing gradually and farming plays a vital role in fulfilling the global needs. Food is one of the basic needs of survival for all human beings. No matter where you are, what you do, or how lousy recession hits, people can’t stop relying on food. Due to the prevalence of mismatch in demand and supply, prices of the agricultural commodities keep on increasing. This can facilitate investors with good money. 

High Returns through farming– Investing in agriculture and getting high returns is not as difficult as it was decades ago. There are many ways, such as community farming, Agri-tourism, and organic farming, to generate high ROI and investment. These three have been proved as some of the top methods to generate income from your farmland.

High resale value– The third one is the traditional reason of all time, i.e., buying a property for high resale value. At least one person in every ten people buys a property because of high resale value, and farmland gives the same benefit for less investment. Agriculture land always promises a high long term returns, and if your land is located where a government project is expected, then returns gets ten times higher. It is known that rural land is always getting higher compensation than urban land.

Recurring Income– Land-pooling is another promising way to get assured return on your land. With the smart and researched investment, farmland can end up securing your financials for a lifetime. Government plans to launch new schemes to support increasing urbanization in the areas where the city is expanding. Chosen by such schemes, an owner will get regular returns from their pooled land.

Let us know your thoughts.