How to Profit from Farmland Investment

[Mika]

Investing in farmland can be highly profitable venture. There are multiple ways to profit from farmland investment. Farmland is usually in rural areas, so it's cheaper than land in cities or commercial areas. Therefore, you can buy comparatively larger land area for the same money that you could when you buy land in the urban areas

You can start farming on your land. Food is essential item and food prices keep going up, therefore, you can make a good profit from farming. Try organic farming for even bigger profits, because lots of people want organic food. If you do not want to farm yourself, you can rent out your land to other farmers. You will still make money from your farmland without doing any work.

 

[Etini]

This would only work out if you can find very cheap lands to buy. You won't be able to profit if the land is above marginal costs because in a matter of 3 to 4 years, the land would lose it's fertility. And you have to spend more money to replenish the land.

I would have loved to invest in farmlands because I have very cheap ones around the area that I live. What I fear most is the theft of farm produce on the farm. When you want to invest on rural farmlands, you have to factor in security for your investment depending on how volatile security situation can be in that location.