I think the main point here is not how much you can make but how much you can make consistently
Having heard experiences ranging from 20000 an acre to 10 lacs an acre, the range seems to be in both the extremes and it depends on a lot of factors ranging from environmental to technical
Previously there was a discussion on the board on what is the best scenario / cropping pattern and income generation models etc and everyone had a view point but on hindsight I think that is what it is opinions for wannabes like us.
experienced farmers will tell you that there is always a different story every year which can make the renumeration vary from one end of the spectrum to another
I personally get a feeling that setting a target is not realistic for wannabes like me, I would rather view it from another angle
i.e. how much money I would require to sustain myself (based on lifestyle choices) & my family each year, this will be the biggest factor in deciding how I would plan about the transition into a full time farmer
and what if everything fails, can I have some kind of backup plan where I could look at going back to what I was doing earlier either part time or full time, this also needs to be looked at during the transition where I know I have some kind of assured income while I am transitioning and it would also help if I have some kind of reserves for emergencies
bottomline is we need money to survive, how much depends on individual choices but current responsibilities, financial strength is a major factor which will decide where we end up eventually
most people are good and helpful, they will help to the best of their abilities during the transition but consistent and assured financial backing during the transition is something that is dependent on oneself only
Murali: you had a question on what is the realistic price for land, there is no clear cut answer to that. keep everything aside, assume you have 1 crore rupees to invest in a project
there are many financial modelling rations like NPV, BCR, IRR that can be used to evaluate the potential rewards and hand in hand you can analyze the risks and build a strategy to mitigate it but all in all it is a gamble
using this case, someone like atul (see hydroponic capsicum cultivation) has very less land holding (and he could have brought it at a premium) but his revenue model seems to be working
so no matter you pay 80000 an acre or 25 lacs an acre, the price of land can translate into rewards based on what value you can draw out of it and to draw out more value you may need more investment, efforts and luck
one of my relatives has some land down south (inheritance), the land value is quiet high in that area but all he is doing is growing grass with minimum investment and selling it as fodder @ reasonable returns and he is happy
now to take the original question again, what is a realistic price of land. if I have the confidence and means to extract an average of 10 lacs as net profit yearly then I would not mind paying lets say 10 lacs an acre ??
there is a dude on one of the other forums, who has around 3.5 acres land holding near kodaikanal (i think), he has a complete polyhouse setup and selling flowers directly to bangalore, mumbai to the big players. he is selling out as he is migrating and asking for 70 lakhs for the whole project, how much do you think he must be earning yearly? he started this pretty early and i think he has made full paisa vasool of everything he has put in till now
if you buy the project from him, what value would you put to the following
- cost of the actual land
- infrastructure
- business (exisiting clients, production chain, future potential, present orderbook etc)
this dude is highly educated, retired army guy
similarly in denkakotai (pardon my spelling) less than 100 kms from bangalore one guy is selling similar around 3.2 acres i think with a 3000 sq mt polyhouse cultivating gerbera, a smaller one cultivating capsicum. typical village guy I had to use a translator to speak to him as I could not understand his tamil / malayalam (normally I do)
he is asking for 9lac an acre and if I had made him an on the spot offer of 6-7 he would have sold, though no visibility on sales, production and orderbook
but the common thing in both these properties is that fully fenced, all infrastructure in place, close proximity to major cities and basically premium location
brijesh