Step-By-Step Process Of Buying A Farmland

India is a predominantly agricultural country with 159.7 million hectares of arable land. Even though other sectors are constantly evolving in India, agriculture continues to be the primary source of income for India. Due to India’s dependency on agriculture, managed farmlands have emerged as a new asset class for the new age investors. Investing in farmland can be a very lucrative venture, but it requires careful preparation and management. 

In this article, we will offer some insightful advice on how you can buy managed farmland and what is the best managed farmland that is available for your investment. Let’s begin with how you can start the investment process. 

How To Invest in a Managed Farmland?

Step 1: Set a Budget and a Goal
Before buying farmland, determining your budget is crucial. Even more than that, you have to ask yourself a few questions such as, Do I want to establish a new farm from scratch? Do I develop an already existing one? Do I raise cattle or crops? How much money is needed to prepare the land or the machinery?

Take all these questions into consideration before making a decision and then start looking for farmland that meets your requirements. Investing in farmland is a big undertaking, and it is crucial to develop a sound strategy before making any purchases. Other factors to consider before buying are water accessibility, location, soil quality, and zoning rules. 

Step 2: Research About Market and Location
After setting a goal and a budget, it is important to research the market and the location of the farmland you plan to buy. During the research process, you’ll learn about the land’s suitability and whether it is a wise investment. When you are researching the farmland, look for things such as the demand for agricultural products in the local region, the climate, and the possibility of crop growth. The results of this research will indicate whether the market is favourable for selling your crops.

Other than that, it will indicate the ease of transporting and distributing goods and reaching the consumers. Additionally, you can find out about local resources and the availability of labour as it affects the management of the land. Last but not least, you have to research the municipal and zoning rules to stay out of legal problems. 

Step 3: Evaluate Water and Soil Resources/Quality
A vital aspect of farmland assessment involves conducting soil tests, which can unveil information about the soil's pH balance, texture, structure, and nutrient composition. This knowledge enables you to assess the suitability of the soil for various crops and identify any necessary amendments to enhance fertility. Additionally, water testing is essential, as it provides insights into the quality and accessibility of irrigation water, particularly in areas with limited water resources or potential water quality risks. Considering the land's terrain and addressing any drainage issues that may impact crop development is also crucial. By evaluating these criteria, you can make informed decisions about crop selection and land management to maximise profitability.

Step 4: Assess the Infrastructure and Equipment
Whether you choose to raise crops or cattle, you have to consider infrastructure and equipment requirements. This includes equipment for storage spaces, harvesting and planting, and irrigation systems. By properly anticipating equipment requirements, you can easily set a budget for expenses and ensure that the farm operates properly. 

Step 5: Track Your Advancement with a Farm Management Plan
After acquiring farmland, it's essential to create a detailed farm management plan covering aspects like crop choices, soil management, irrigation, and pest control to ensure profitability. Regularly assess your success and make necessary adjustments for long-term viability. Consider collaborating with an experienced farm manager or consultant to help formulate and implement an effective strategy.

To Wrap it Up
A successful farmland investment involves careful pre-purchase evaluations, including soil and water testing. After the acquisition, maintaining profitability requires a detailed farm management plan covering crop choices and ongoing assessments. Collaborating with experienced professionals enhances decision-making for long-term success.

FAQs
1. Is it worth investing in managed farmland?

Yes, investing in managed farmland is worth it. It is one of the ways to create long-term wealth. You can earn from what the land produces or you can raise cattle, which also opens up many revenue streams. If you are a young farming aspirant, investing in managed farmland is worth it. 

2. How does managed farmland work?

Managed farmlands are run by institutions or individuals and they are taken care of by an experienced agency. If you plan to own managed farmland, you don’t have to work on the field and yet you earn from the produce. 

3. How do you manage agricultural land?

Several practices such as cover cropping, conservation tillage, and crop rotation improve soil health and, at the same time, reduce erosion, increase organic matter, and enhance soil structure. Additionally, these practices improve water infiltration, and soil fertility, and decrease soil degradation.