5 Common Misconceptions About Farmland Investment

Now that farm investing has gained traction in the market, here’s a list of the five most common myths and misconceptions that can obstruct you from moving ahead.

1. First, farmlands or farm investments require enormous savings. Well, that’snot true. You can start as small and scale up.
2. One of the best things about investing in farmlands is that government policies subsidise most investments, making them more affordable and accessible.
3. Second, many people believe that agricultural investing is reserved for organisations. That’s false. Anyone can own a farm. You don’t need to have large sums of money or be a part of an organisation.
4. There’s been an influx of urban professionals investing in farms, especially through assets such as managed farmlands.
5. Third, farm investments are riskier. That’s a myth. As long as you find the right place, there’s absolutely no risk associated with farms.
6. To avoid scams, it’s always advisable to check the history of the property and the developer/farm management company’s market credibility.
7. Fourth, farm investments require prior knowledge or experience. Again, this is false. Managed farmlands are the perfect way for people with non-agricultural backgrounds to make farm investments.
8. Since management companies handle them, there’s no need for previous knowledge or experience to make them bountiful and reap huge profits.
9. And last, any farm is a good farm. It is not true. To ensure high turnover, you must look into the land quality and value before investing.
10. Consider soil quality, location, climatic conditions, local socio-economic conditions and labour before buying any piece of land. It must be fertile and cultivable to yield a good harvest.

We’ve debunked some popular myths about farm investing; we hope to have pointed you in the right direction. Farmlands are the place to be if you’re looking to diversify assets and generate wealth!