Murali & others,
The land prices are up because land is not factory made. There is only a limited supply of land. Despite the factors that you mention (weather/labour/input costs etc etc) the fact is that there is only a limited supply of land. If you need more land for agriculture then the government has to de-allocate some of the forest land which is unlikely to happen.There is a booming speculative trade happening in real estate including agricultural lands. Some of the top companies in the world and in India are busy buying farm lands as they see massive potential. Also, a lot of city folks who get fed up of the daily routine are willing to pay premiums to buy patches of agricultural land to build second homes. Yes they call that second home where they live a mere 15 days in a year.
Ours is a growing economy. Our population is going through the roof. Being the biggest population the world, It will not be an easy task to feed a population in excess of a billion. we will consume more of vegetables, fruits, meats etc in the coming years but the question is does our production/supply match our demand?. There will be a super duper demand for agricultural produce over the next two decades. In fact, there could likely be a shortage of agricultural produce over the next few years as a lot of farmers are moving away from traditional farming to relocate to cities. Add to this vagaries of weather, policy etc we are headed for a whole lot of rut.
Educated farmers, enthusiasts like you and me can change things around a bit. Being specifically educated in agriculture brings in a lot of advantages. Its just any other job. If you have no know-how then you will loose money in the initial years until you have figured out the tricks of the trade. Why not then get some education in agriculture. I know it seems far fetched when I ask you to get education in farming. You probably think you have to go back to college. Fact is, in today’s well networked world, nothing is impossible. There are so many online courses that can enhance your knowledge. These courses, although online and lacking in practicals can at least give you text book knowledge which could help you in the long run. I recently downloaded a Banana growers manual from an Australian university and was quite happy reading a concise manual that laid down basics of banana growing. Now you see if i were a new farmer growing bananas, the manual could be of great help. By being educated in agriculture, you are in a better position to assimilate knowledge and use it for your benefit in terms of optimum usage of your land, cropping, pest management, improving output per acreage, improved harvesting methods, marketing your produce etc etc.
Whoever says that you cannot make money in agriculture probably does not have a good understanding of the potential of agriculture. Ask yourself why should agriculture be treated as agriculture ? Why not treat it as an enterprise? like any other business? You see here lies the problem. Most of the farmers who don’t make enough do not have the right approach to commercial farming. Most of us treat agriculture as just a way of growing something. If we treat agriculture like any other business, we could have the best of both the worlds i.e money and peace of mind or whatever other reason you want to do agriculture.
you probably have read the story of the farmer who earns about 22 lakhs from 2 acres of land. If he can do it why not us? Even if you end up with 10 lakhs from 2 acres its an awesome deal.
I personally know a few guys who are minting tonnes of money in agriculture. One of the biggest problems faced by the farmer is disposing off his produce at reasonable prices. So doesn’t it make sense to grow things that have longer shelf life or enhance the value of their produce?? For example, Coconut farmers can extract coconut oil which pays better than just selling their coconuts in the market. Banana growers can make banana chips and sell as a branded product. There are so many ways of doing things. Of course, some of these things need additional capital but then again it depends on what you want to do.
Naturally/organically farmed produce has so much potential. So thats an area one can explore. My personal opinion is … It is we who set our own limitations. Agriculture offers unlimited potential for monetary benefits (and spiritual benefits)
Lastly, dont get into agriculture only for MONEY. I know money is extremely essential for survival. Do it only if you are passionate about it and money will follow eventually. I know it sounds contradicting to my statements above where I opined that agriculture has to be treated like a business. Of course it has to be but the point is, you will have to be passionate about your BUSINESS OF AGRICULTURE. No passion = No Success