I Just Bought an agricultural farmland in Palakkad. Here Why?

Yes, farmland is a great investment! You may ask, why farmland?

For me, farming and food production is an adventure, as it has always been a tie to the nature, science and life-long learning for me and my family...

Besides, it's a low-risk investment that can profit you in different ways. All you need to have a good understanding of the soil and climate. So, when you own a rich, high piece of land - It's always going to be in great demand and will generate a solid income as long as you decide to keep it.

Given my interest in Farmland, I would say - Farmlands are the best I ever found when compared to buy and hold the type of real estates. A farm has the added benefit to produce goods and generate income (coconut, mango or dairy farming occupations). And of course, it can be done well using the traditional agricultural practices and lifestyles of Kerala.

As for investment returns - there are two ways to make money, one through capital appreciation and another with custom farming.

Capital appreciation is one where the value of the land goes up then the investor can sell it for a good profit. While custom farming is entirely different! Where you need to hire a farmer as a contractor to operate the farm. Depending on this agreement, the contractor could operate the entire farming process - starting from seeding to harvest. He just acts as an employee. But the major benefit of custom farming for the owners is they have control over the entire farming process and receive a big income from the sales.

Farmers in Kerala make pretty good money with farmlands. They have benefited much from the rise in commodity prices, as everyone pays more for the food. Another point is, farmers receive plenty of benefits from government programs like affordable farm insurance including low finance rates on all the farm equipment.

My personal experience with farmland investing...

With my small land holding (1 acre), I am able to make a passive income. I cultivate rice, pulses, vegetation and sell it in the open market at a profitable amount. For me, this stream of income is never going to disappear - mainly due to the stable, hands-off nature of the farmland. Similarly, Farmland investing works the same way as investing in a rental property. All you need to call up the real estate company or find some good selling agent, as this is a massive opportunity to build wealth...