I am planning to invest 30L into Agricultural land in Bangalore. My parents have the credentials to invest into farming land. But the issue here is getting something decent/Sizable land for 30L. I have came across some decent options in the range of 80-90 Lacs [which are sold now but sure i will get many of these options going forward]. One of the Option evaluated by me is to form a team of 4-5 people and buy 8-10 acre agricultural land and plan meaningful ROI with some kind of cultivation. Any thoughts around this thought process… [Pros/Cons etc…]
Resp bglagri, Theoritically, your opinion is good and helpful to others also, but very difficult , in practice.
you will get decent and sizeable land,say around 3 to 5 acres ,if you go 80 to 100 kms from bengaluru outskirts, in subroads only.
You will have cash on hand, other will have cash availability in three months,another will get money ,but uncertain, one more will get cash but wants x part and another also requires xpart.
These are the practical difficulties. I sincerely suggest you to go for individual purchase of land suitable to you, and start successible agri life.
The idea is good, but like Mr. Rao suggested, it is very impractical but not impossible. If you know like minded people who are good enough to accept and adjust a bit then it would work out.
But please ensure the paper work is properly done as on a longer run, maybe partners’ children might create issues…
As a suggestion for land, try the villages on the highway road between Magadi and Kunigal… This will give you lot of options
Thanks Rao/Nithin for the input. It makes a lot of sense…
Look at the irony, I have got couple friends and a relative of mine who are up with my idea but no agricultural background. :’
I zeroed in nelamangala/magadi area as it is 45 mins from my house.
Dear bglagri sir, I suggest you not to loose your hopes and initially, may not be fruitful, but not impossible . A good day will be sure. try and try, with hope.
From bengaluru, at around 80 t0 90 kms, agri lands are available at rs 6 to 7 lakhs in sub roads.
Agri Lands will be costly, if we want them on the premiere roads. But i suggest ,we farmers should prefer sub roads.
Sincere advices, not to loose interest and hope.Pl be optimistic.
I have gone through this stage and guess many must have tried evaluating this option.
What Rao uncle is saying absolutely true when you reach out to wider audiences l I keep this forum, but if you can find any of your close friends with similar interests, there could be some possibilities.
Even going with friends you need to clearly agree on the terms and conditions clearly, especially on the value proposition when one of them has to exit, or details like how the buyouts have to planned, and worst case split has to take place.
It is impractical to find synergies on forums (you might find experienced realtors ready to grab opportunity to side line you)
My gut feel says, before buying a specific land keep the cards very close to chest, or else the competition will increase the price easily.
Yes, it is near impossible to buy in a group. There were several attempts by members on the forum itself and I have not seen one that worked to the end.
My own experience was that supposed group members slip away after finalizing a piece and the whole deal fails since we would have negotiated based on a certain size.
Then there are issues on who gets the roadside, the eastern corner, the bore etc. etc.
We had similar situation in basement parking in our apartment. Then we decided to write all numbers and ask the youngest member of the family to pick a number. Something similar can be done here… if all can agree…
Even if the land holding is in the range of 3-5 acres, I would advise you to go individually and learn the nitty-griity of the trade and expand later on. The learning curve will be steep initially and with many uncertainties, convincing your partners at every stage can be tough unless otherwise they’re very understanding.
Please go for open field cultivation of tuberose / marigold / rose ( after studying soil, water and proximity to market) in 1/2 to 1 acre with drip irrigation. This will ensure daily cash flow and will give you the much needed motivation to go ahead. Tree crops need a gestation period and you need to have a healthy mix of daily, weekly, monthly and annual cash flows to spread your risks. Beginners tend to spend much on unnecessary areas and it would be wise to visit as many farms as possible to study the best practices than merely following articles in books and consultants. Always keep your fixed / capital costs low and avoid the temptation to go big right from start.
Leased out agricultural lands with water and power facilities are a good option for starters. A fixed, one time, refundable sum is paid upfront for a lease of 3/4/5 years (Five years would be better if you are investing in drip irrigation) and your farm will be up and running from day one (the lease should be registered). Flowers, vegetables and short term crops can be tried under this model. Since it is an agricultural land, labour availability should not be a problem. You’ll also be saved from the hassles of providing power and water. Such land parcels of 5-7 acres are available for Rs.3-5 lakhs (total sum, not per acre) in Tamilnadu.
I have been in to farming for the past 5 years with no formal agricultural background and the above are my realizations over a period of time. Good luck!
Could you please advise , we are planning to buy some land in Kerala, obviously the rate we cannot afford our second option is Tenkasi and then tirunelveli . We are planning for a mixed farming step by step , we need 3 acre land water rich also availability of loan nabard or other banks I am not much familiar with tenkasi and tirunelveli please mail on psmathews99@gmail.com
