Farm Investment in Nigeria
The most popular trend in Nigeria currently is an investment in agriculture. The opportunity tied with agriculture is so vast that it had the federal government helping citizens to start. No matter how small your farm is, it has numerous values readily bringing profit. The profit that you get from this small farm can earn you lots of money that will sustain your family for a long time. Therefore, it is in anyone’s interest to seek Farm investment in Nigeria.
Investing in farming is a big bonus for everyone interested. It brings various returns on money, elevates you financially, and sustains your daily feeding with your family.
The good news is that we have the best of Nigerian citizens at heart. Hence, the reason for educating everyone on making money from farm investment. The great book said, “my people perish for their lack of knowledge,” but we don’t want that. Everyone interested can become an investor in the agricultural sector. Therefore, pay attention to this blog post and read on to help you grow your finances.
Firstly, we will define what farming is in Nigeria as this will give you a basic understanding of what you are about to put your money on.
What is Farming?
The farming system consists of a series of activities carried out by farmers on farmland through various resources. These resources and processes are used under certain conditions to enhance productivity on the farm. Additionally, the productivity will then yield a series of sustainable incomes for a long period for the farmer. The farming process does not exclude the focus on soil components, livestock, crops, energy, capital, and a series of other resources. These conditions are always in place to make a successful farming process. There you have it, the definition of farming. We are certain you are pleased to see a “series of incomes that is sustainable.” Yes, you read that right. You can make a lot of money from farming, which is why many people are deciding to invest in farming.
Farming has a series of money-making attributes that will make anyone put their money in it. Farming comes with low-risk investment. It also does not slow down due to inflation or economic downturn. Instead, it keeps increasing in value as time goes by, and your investment can soon be double multiplied. Another impressive attribute of farming is that it has a series of an investment portfolio. You can choose what type of farming you want to do and carry out multiple farming at the same time.
Having stated all of the above, it is only important for you to know the various ways you can make money from Farm investment in Nigeria. Below are the series of reasons you can make money from arm investment.
Appreciation of Farmland
Many aspiring farmers have no farming means because they do not have farmland. Many have thrown away their passion for becoming farm owners due to a lack of funds to purchase farmland. The major reason attached to this is the value attached to farmlands. Farmlands are expensive to purchase, especially in rapidly developing areas. This is because the land appreciates every day, and the values continue to soar every minute.
Additionally, urbanization is limiting the availability of farmland. Hence, investing in one will fetch you a lot of money after a certain number of years. You could resell your farmland three times your initial purchase. Many farmland investors carry out their investment process by buying and reselling after some time. This is a great investment opportunity that will fetch you many funds in the future. However, it is important to note that farmland investment is long-term. However, it is worth the wait.
Yield is the joy of every farm investor because it spirals recurrent return on investment, and the process does not stop. The inflow of cash stems from harvested crops. In this regard, there are various types of crops like annual crops and the types that you harvest several times in a year. In most cases, investment in yields comes as a long-term commitment because of its recurrent cash inflow. Additionally, the money spent is basically on the initial startup funds in most cases. Any other recurrent management money is earned from sales and profit made from the first sale. Also, to secure your investment, you can always focus on high-selling crops that you can insure. Ensuring these crops will mean you can sleep safely when unplanned challenges arise. Lastly, yield investment can sway into different crops depending on your farm’s size. In the long run, this will also help your return on investment.
You can liken this to the real estate approach where an investor can switch designs at will. In the case of farming, you can easily switch your farmland to high organic return farmland. Doing this will skyrocket the investment return on your farmland. To force enhanced equity, you can also increase the infrastructure on the land. You can also easily convert your farmland from low-income crops to high-end income crops along the line.
Making Money from Other Income
Farming, of course, is a big income generator. It has many potentials in Nigeria that will readily intrigue you. for example, if you are focused on animal arming, you can make a lot of money from the waste they generate. These wastes can soon be mixed into fertilizers that you can sell for a huge amount of money to other farmers in need. Additionally, you can use the waste as fertilizers to enhance the growth of your crops. All of these will make your investment worth the while.
Furthermore, your farmland can be a place for billboards, thanks to urbanization and digitization, especially if it’s closer to the road. Cellular towers can also pass through your farmland, and you will make a lot of money to give them access.
Overall, farm investment in Nigeria is a superb choice of investment that you can always have the hope of great returns.
Risks involved in Farm Investment
Having listed the above, we must let you know that “not all that glitters are gold.” The farming investment comes with its risks, and knowing this will give you a sense of direction and guidance that will help keep your investment secure.
Human or Personal Risk
You are rarely available for the energy work required to keep the farm running as an investor. Hence, it mustn’t work that way for the farmers on the field every day. There is a risk of health issues or fatigue leading to human errors. These errors can sometimes be costly or minimal, but you should expect them. An unexpected farming accident can also result in death, and other factors can hamper the progress of the business.
Risks that come with Production
You can’t possibly take this away from farming risks because of the many factors involved. Pest invasion, natural disasters, and more can alter the farm’s rate of production. Additionally, natural growth processes are largely uncertain. Hence, it can disturb productivity. Always remember to factor this into your investment plan.
The herdsmen invasion has threatened a lot of farming investment in Nigeria. The herdsmen invasion has sent so many farmers off the market, bringing about loss of income and investments. They have caused a series of havoc on farmlands with their cows and have killed many farmers who decide to have a face-off with them. In this case, you might want to invest in armed security personnel to help you secure your farmers and, in return, your investment.
In this regard, your investment can run into minimal or big risk if or when the government changes policy. However, you can mitigate this by ensuring all government farming laws are followed before putting your money into the investment.
The good news about farming investment is that most of the risks attached can be easily controlled, which will keep your investment running for a long time.
How to Start your Investment in Farming
You can either choose to go for the direct or indirect investment.
Direct Farming Investment: Direct investment allows you to meet with the farmer and have a profound discussion about what you both want and how best to achieve it. In this case, both parties will come with their lawyers and then sign an agreement on what should be achieved at every agreed time. In most cases, the farmers bear the loss that is incurred. However, the good news is there is no middle man fee, and all parties get to share the full profits.
Indirect Farming Investment: this type of investment allows an investor to invest through a third-party agency. The stress of having to meet the farmer is not present here. All you need to do is make an amount of investment payment, and at a given time, you will get a set percentage in return.
Farm investment in Nigeria is a sweet business, and either way, you choose to approach it after gaining appropriate knowledge will help you make money. Also, you mustn’t neglect the risks attached to the investment. We can assure you that you will get a good return on your investment if you follow the right approach.