When most people talk about making money from real estate, they’re usually referring to earning from investments in unused land, residential or commercial property. But there’s another way to reap great gains from real estate: investing in farmland.
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There’s a lot of potential for earning big from farmland. And this doesn’t need to involve you doing the farming yourself, or selling farm produce. If you play your cards right, the returns you’ll get from investing in farmland could approach or match what you’ll get if you opt for the more common real estate investments.
Let’s cut to the chase. Here are five ways you can make money from investing in farmland.
In a previous article, we talked about how to flip land for profit. This basically involves buying land on the cheap and selling it at a higher price shortly after (sometimes after making improvements to the land). It’s one of the least expensive ways to foray into the real estate business.
You can do the same with farmland. Acquire one that you can afford, and sell it for a profit when land prices climb in the near future.
You could purchase agricultural land and lease it to farmers. This is the agricultural equivalent of renting residential property to tenants. You could also lease the land to a farming company; some of these organizations are always on the lookout for quality space to expand into.
Revenues may either be collected as annual rents paid by the farmer or farming company, or via a profit-sharing formula that you have agreed upon with the tenant farmer(s).
Sell Farm Produce
This may involve you running the farm through a farmer (or farmers) you’ve hired. This differs from the lease option because you’ll earn directly from the sale of the produce harvested from your farmland.
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However, you will need to acquire the equipment required to cultivate the land and harvest produce from it. So it means you’ll be incurring extra costs. Nevertheless, you could also be reaping greater returns over time than some of the other ways to make money off farmland.
Sell Seeds And By-Products
Another way to earn from farmland is to sell seeds and farm byproducts like wood and manure. Other farmers may want to buy seeds from you; and if you rear animals, you could also sell animal manure to crop growers and gardeners.
Wood from your farm may also be sold as firewood.
More Ways To Earn
You could agree with mobile network service providers to have a cellular antenna set up on your farm. Or you may have people pay you to hold events on your grounds. Schools could even organize educational excursions to your farm.
As solar power becomes more popular in Nigeria, persons with large farmlands could be paid to have solar panels installed on their land and connected to nearby communities. If the land is close to a major road, they can earn an income from a billboard set up on it.
Like the other kinds of real estate investments, farmlands offer their owners multiple ways to make a profit. If you own a farm (or you’re looking to invest in one), you can take advantage of some of the tips we’ve shared here to boost your earnings from it.
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