The landscape of the investment world is changing, and many urban citizens are investing in farmlands. This trend is gaining momentum, and there are specific reasons for it. Owning farmland is an advantage over any traditional real-estate investment because agriculture is a tax-free source of income, which can be an alternate source of income for urban dwellers, i.e., passive income. It's an opportunity to connect with nature and improve the overall ecosystem; a weekend getaway to relieve stress; appreciating asset value, i.e., a higher "Return on Investment". Therefore, it is a long-term investment. Also, various state governments in India have now reduced restrictions on non-agricultural people owning agricultural land, opening up the market for new investors.
The Inception of Managed Farmlands
While investing in farmland is beneficial, there are also challenges to owning and managing farmland for the urban population. The most difficult challenge is identifying the right size of land in an ideal location while staying within your budget. Later on, soil quality, water resources, legalities, labour, power, farming operations, and finding a nearby market to sell your produce will be other challenges to face.
Managing any farmland requires a lot of attention and knowledge, which an average urban dweller who works and lives in any metropolitan city might not have. To fill in this gap and make the dreams of urban farming enthusiasts a reality, the concept of "Managed Farmlands" has come into existence.
What are Managed Farmlands?
Managed Farmlands are the farmlands owned by a person or an establishment but taken care of by a professional agency. Managed farmlands are a profitable investment because they are based on rising land values and crop harvests.
At first, a professional farm management company acquires well-curated farmland in an ideal location, with a focus on water bodies. Later, the basic infrastructure is put in place, and the large farmland is divided into smaller farms of different sizes.
What are the Benefits of Owning a Managed Farmland?
What are the Key Points to Keep in Mind And the Legality Involved Before Investing in Farmlands?
It is safe to say that investing in agricultural farmland in India is a good way to earn. Farmland has proved to be a good long term investment that pays off in the far future. It also has a high return of investment and is one of the assets that changes the least because of inflation. The quality of the land also affects how much farmland is worth. Thanks to advances in technology, it is now possible to keep the quality of the land and the fertility of the soil, which will keep farm values going up for the foreseeable future.
Now obviously Managed Farmland has several benefits, but there are things you need to keep in mind before investing. Here are some of the pointers that you need to look out for -
Why Managed Farmlands are a Better Investment Prospect?
A managed farmland is a long-term system in which people can invest in a farm plot and then sit back and watch their assets grow without having to manage it all by themselves. Professional farm management companies are in charge of taking care of people’s farms and the crops they grow. So, the yield is sold and the money from the sale is split between the owner of the land and the farm management firm. Mixed Farming, coffee, tea plantation, wood plantation are some of the main types of assets that managed farmland have. Investments grow without having to take care of the land themselves. There is no doubt that the value of the land will keep rising up. When a person invests in farms, not only does the value of their land keep increasing but also the area has a cover of plants that keeps growing back.
PropertyAngel is a leading O2O (online-to-offline) second landlord platform. We are a Bangalore-based property management company offering professional property management for individual apartments, houses, and villas. Contact us at (91-80-47095974) or (91-7406484455) if you need guidance on how to invest in the right property in Bangalore.
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