How to make a farmland investment: Farmland investment is a lucrative business with a very high turnover. We eat food everyday and it is an important aspect of our lives. Since sustainability of lives depends largely on food, it is investment wise and sensible that investors should key into agricultural /farmland investments.
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Inflation is one of the main reasons investors must diversify to agricultural/ farmland business. The prices of farm products in Nigeria are growing at a very high and astronomical rate.
The current inflation rate of food items in Nigeria according to CBN report on its website is 17.82 %, therefore, investing in agricultural/ farmland business is just another way to fight the high cost of living. Farming has the added benefits of producing goods and generating income.
As for investment returns, the following are some of the ways to make money on a piece of farmland by investors:
1. Capital appreciation and income on acquired farmland
Capital appreciation means if the value of the land goes up, then the investor can sell it for a profit. The rate at which prices of food skyrocket in Nigeria has lured many people into farming and the more people that are going into farming the higher will be the value of farmland because of law of demand and supply.
One of our clients purchased an expanse of land at N40, 000 per acre in Ogun state early 2016 and after some months, he sold it at N70, 000 per acre. This is 75% gain within months of purchase in the same year.
It is our advice that before anybody ventures into acquisition of farmland, he should equip himself with prerequisite knowledge regarding acquisition of landed property by reading: ‘7 reasons you must do search before buying farmland in Nigeria’ and ‘6 real reasons prospective buyers fall prey to property scams’