Where To Start When Investing In Plantations.
Plantations are basically large scale farms where cash crops are planted like coffee, tea, pineapples, sisal, cane, pyrethrum, cotton and many more. Investing in this genre is as good as investing anywhere else. A good investment is known by its growth, this one is even more actual as you get to see every step of the growth.
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. 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. You will need to also survey the location and determine the type of soil and what it is good for before deciding on the plant you will work with.
Upon the checking of above, now identify the land of which you intend to invest in. The determining factor for the location of the land is inevitably the cash crop chosen.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.
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. 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.Check around to see the payment terms and figures.
Seedlings, fertilizers, pesticides and chemicals needed must then be near the plantation or at least locally available. Purchasing in bulk is usually a safer bet when handling a plantation as this assures no emergencies occur along the way. Immediate remedies can be a determiner between success and failure of your plantation.
Insurance is a key factor to always put in mind. Consider having your plantation insured and do your due diligence in hunting one that best suits you. Competition is rife with insurers, there must be one out there that covers agricultural enterprises. You can never go wrong with insurance as it is a win win.
Capital is essential, it literally holds all the tips mentioned above together. After evaluating all the above, seek the capital needed. 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.