Large scale farming of cash crops like coffee, tea, pineapples, sisal, cane, pyrethrum, cotton and many more is what is known as plantations. 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.
Investigate the venture thoroughly.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. For example a tea plantation cannot be planted in tropical zones, nor can a pineapple farm do well in highlands. Do a feasibility study to identify the climate, what the soil is appropriate for and what it needs.
Checking to see where the land for planting is, is next. The crop you have chosen to work with on the plantation automatically dictates the location of the land.Consider the advantages and disadvantages of either leasing or buying the said 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.
Laborers is also a key item to consider. Find out from the other land owners what they do and how they work. Consider the option of leasing over buying of equipment needed at the farm.Find out if there exists skilled hands to handle the equipment.Find out the wage.
Consider the closeness in terms of distance of the pesticide shop that can handle the plantation’s chemicals, seedlings, pesticides and fertilizers. Bulk purchase of the Seedlings, fertilizers, pesticides and chemicals is very important to be armed in case of emergencies. If there is an outbreak of sorts on the crops, there needs to be an immediate remedy.
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. Insurance companies are always fighting to remain relevant and as thus, there are numerous of them now covering agricultural ventures. You can never go wrong with insurance as it is a win win.
It is critical to put in mind the importance of capital. After evaluating all the above, seek the capital needed. Be it that the amount was set aside already or if it requires other shareholders to start off the project, be ready financially. Enough funds are important so you do not have a shortfall of requirements on the plantation leading to heightened stress levels of investors.