4 Ways To Make Money By Investing in Agricultural Land

There are several reasons to invest in an agricultural land: it is a low-risk venture that retains pace with inflation and accounts for long-term value appreciation. Further, it is a physical asset that benefits the community and broadens your portfolio.
 

But how exactly does this kind of investment generates capital? Investors can benefit from several different ways depending on the financing and the farm type. Here are the most profitable ways through which you could make substantial gains by investing in cheap agricultural land in Andhra Pradesh.

1.Crop Yield: Investors can generate income through the cash flow of harvested crops. While most of the crops are seasonal, but there may be several harvests that could even yield multiple times a year. 

Funds are generated either through long-term agreements with lessee farmers or from direct yield selling to the consumers who are willing to buy. It is also noteworthy to mention that the crop insurance which protects and covers the farmer in case of a natural calamity, covers the agro land investor too. It means that even if crops are lost or the income slumps as a result of falling product pricing, the farmer is still entitled to receive funds with which he could pay the farmland rent.

2.Appreciating Asset: Farmland is a restricted resource in the sense that almost all of the arable land in India is under use. Due to metropolitan sprawl and urban development, farmlands are dwindling further, making the remaining area highly valuable. No wonder, the agro land is highly lucrative and appreciating investment asset; if the farm is located near a residential area, the value of the land is bound to surge rapidly owing to the high potential of future sell-off. 

3.Forced Equity: Just like in real estate, an investor could add value to their agricultural land too— You could plant crops or turn it into pastureland. It is also possible to increase the value of the investment by switching lower end crops such as commodity crops with higher-end options such as trees and move from conventional farming mode towards higher yield organic farming.

You may also add value by constructing buildings and infrastructure on the land to raise equity. Such structured improvisations could drastically increase the farm value, should you be interested in future selling. 

4.Other Income Generation Methodologies: If the purchased piece of agro land encloses a water body, water rights can be sold or leased. If the farmland happens to be near a famous road or popular spot, there might also be potential to generate income by placing billboards or constructing cell and radio towers.

In case you are looking to invest in cheap agricultural land in Andhra Pradesh or its vicinity, visit us now at Gosmartagro.com.