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. If anything even better, because you can track growth literally from the ground up.
Find out all that you can on plantations.Evaluate the benefits of this venture and seek out the other similar investors and hear what they have to say.Whatever cash crop you have finally picked out to invest in, ensure you have garnered enough education and advice from appropriate angles.
Next is to seek out a category that suits the niche of your understanding and also the climate. For example a tea plantation cannot be planted in tropical zones, nor can a pineapple farm do well in highlands. Before anything, make sure to examine the area and look at the climate, know what will do well in that kind of soil and what will not.
Checking to see where the land for planting is, is next. The location of the land is determined by the crop you have chosen.Consider the advantages and disadvantages of either leasing or buying the said land.Discuss and agree with the land owner of whichever option you seem fits you.
Laborers is also a key item to consider. Find out from the other land owners what they do and how they work. Mull over the options of either buying or leasing of equipment for use in the purchase.If using machines, are there skilled laborers to handle the machines in the locale?Find out the wage.
The plantation requires Seedlings, fertilizers, pesticides and chemicals that is not far. In case of emergencies it is imperative to purchase in bulk. If there is an outbreak of sorts on the crops, there needs to be an immediate remedy.
Insurance is very important for this venture just like any other. Research on what insurers offer on plantations. 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. After evaluating all the above, seek the capital needed. You may need shareholders to meet your capital target or you may probably have set it aside but be ready financially. 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.