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.
Research as much as possible 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.
Next is to seek out a category that suits the niche of your understanding and also the climate. 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. Do a feasibility study to identify the climate, what the soil is appropriate for and what it needs.
After going through the steps above, currently seek out the land where you intend to plant the plantation. 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.
Laborers is also a key item to consider. It will be wise of you to consider getting information from other land owners, this will in turn help you make the right choice. 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.
Seedlings, fertilizers, pesticides and chemicals needed must then be near the plantation or at least locally available. 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.
Just like any other investment consider insurance with the weight it deserves. 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. Be wise and get your plantation covered.
As in any venture, capital is the most important factor to consider. Evaluate after considering the above factors, how much capital you need. 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.