Is farmland a good investment in 2019

Is agricultural land a good investment? Well, I would say yes as agricultural lands or plots are always considered a safe investment.

However, India is the second-most populous country on the earth that occupies more than 20% involved in agricultural farming practices. Equally, investing in farmland or investment in land can generate three types of income.

Firstly, profits from the sale of crops grown on the agricultural land or plot.

Secondly rental income earned by letting out the land farm to a farmer, or land income generated from building a house on the agricultural land and much more.

Is farmland a good investment 2019

Usually, when we invest in a property a second thought comes to our mind - agriculture land or plot which is the best?

So, here's a list of top 5 main reasons, stating why investors should consider getting farmland over other lands.

High returns - Firstly, farmlands (coconut farmland or dairy farmland) is believed to achieve superior returns, compared to other asset classes.

Low or negative correlation- This is really important! Agricultural farmland, be it coconut, diary, paddy or related land, the farmland values never fluctuate with the stock market.

Inflation protection - Food prices generally increase during inflationary periods and so do the farmland values.

Long term outlook- Something which cannot be ignored. The supply of agricultural farmland is quite limited, but the demand for agricultural commodities never stops, it keeps on growing every single time.

How to invest in Farmland/Agricultural land?

Quite simple! This could be attained through the following approaches:

1. You can buy agricultural farmland directly yourself in the private market

2. Buy common shares of a real estate investment trust

Advantages of buying an agricultural land

·     Farmlands can guarantee long term benefits, especially in the area where the government is planning or has planned some future infrastructure projects.

· These days, a number of state governments are planning a land pooling policy, especially in areas where the city is expanding. So, if you are about to become an owner under the land pooling policy, you will get big returns in turn.

Disadvantages of buying an agricultural land

·   Firstly, the conversion is not easy? It's hard to convert a fertile piece of farmland into residential land. Conversion is only possible if the land is dry land.

·    Not everyone can buy. A number of states restrict the ownership of land. It's hard to get one.

Conclusion

We can conclude that farmland is one of the most attractive asset classes, you can own for the very long run.