he land has always been considered an appreciating asset in India. With the ever-increasing population, increased income levels driving to better purchasing capacity, better road network to access these lands and the limited supply of fertile farmlands have all contributed towards making Farmland investments in India, one of the most profitable investment options.
There is limited availability, in fact, scarcity of fertile lands against scores of individuals who want to own a Farmland. This affordable option which has been providing true value for money through decades for those who are looking for returns, as well as relaxation from this concrete jungle and stressful lifestyle, has caused a surged demand for farm ownership among city-dwellers. This, however, depends on the price that you are purchasing against the actual price of the piece of farmland.
Homesteads sell the land at 20 Lacs per acre. That is the actual cost of land with no frills. This price is bound to naturally appreciate overtime and an individual is free to take advantage of this appreciation as the member with ApnaFarm is the absolute owner of the land.
On the other hand, if one purchases the land at an inflated price, he has to wait for the natural land value appreciation to go beyond the price he paid to get his share of profit.
Farmlands have always been an appreciating asset irrespective of the market conditions. This is mainly because the factors that decide the cost of farmland are very different from other investments.
Water: Indian agriculture still depends on monsoon and irrigation has still not been picked up due to various factors like Infrastructure, Affordability etc. Water is the single most important reason to be considered while selecting a land.
Soil: Even though there are multiple ways available for Soil Improvement there is no replacement for natural soil. The right kind of soil is essential for a good harvest.
Access to Market: Farming is not just about getting a bumper harvest, it is actually about the sale of these harvest in the markets & towns that completes the Agriculture Cycle.
Manpower availability: Even though this factor is not as important considering advancements in Agriculture Machinery and Technology, it can be argued that we would still need Manpower to get the job done on the farm. Machinery can only be of assistance if people managing it are skilled.
Highway Access, Legal verification, Proximity to city etc., are the additional advantages however not necessarily the factors that would decide the value of farmland investment.
Members: members are absolute owners of their farms and they are free to sell their land as per their convenience. We as a company understand that emergencies are a part of life and we would not stop our members from liquidating the property for funds – We believe that’s for the investments are – An insurance for a rainy day.
Homesteads: Homesteads manages large farms with individual cost & benefit understanding. We also believe that letting go of a few members during their emergencies will not hinder the growth prospects for us neither will it affect our farm management in any considerable way.
Members invest 30 lakhs in Buying the land and contracting HOMESTEADS to carry out agriculture on it.
The project investment has 2 components and ROI also has 2 components.
a) A major chunk of the price, up to 95% goes towards land ownership registered in the member’s name. The net land value appreciation would be the Return on Investment for the land component.
b) A small part of this investment, about 5% goes towards farming expense which includes, Bore-wells to be set up in the land, Drip Irrigation to be set up in the land, Electricity poles & Transformer to be part of the project, 350 trees per acre to be planted in the land apart from other movable and immovable assets. To fairly calculate the ROI, the residual value of all these components and the income from the harvest needs to be taken into consideration.
Optimum care has been taken to avoid conflicts and the customers are welcome for verbal discussions with project owners and other members collectively. However, in the case of no solution, any legal conflicts are limited to Hyderabad jurisdiction.
Members have an option to renew the contract after 5 years or continue to enjoy the farm assets on their own. Farm trees have an expected life of 15 years.
Guarantee – Land is registered on Members name so about 90% of the investment is secured by way of a Hard Asset (Land).
Investments are being made in both Farmland & Agriculture. Farming is no rocket-science, however, required certain expertise the same as in any other profession. This group provides the platform for individuals like you who have an interest in Farming however do not have the requisite expertise to get into full tie farming.
Agriculture is Nature’s Business, Satisfactory & Rewarding both at the economic and emotional level. There are no guarantees with nature and that’s the risk one has to take if one wants nature’s reward. As such, there are pretty much no guarantee is any business, what we perceive as a guarantee is our mental peace combined with logical reasoning.
Homesteads take all the possible measure to ensure the safety of the crop. Our income is dependent on the good harvest. If the crop is corrupted, Homesteads loses time & effort. Remember, Members’s investment is secured in the farmland ownership.
Natural Calamities – God is responsible – That’s even the legal stand of the Republic of India.
Ideas/suggestions are welcome. However, there’s a lot of investment involved in availing proven technology by reputed scientists/biologists for the project and hence any changes/modifications are not permitted without prior and written concern of the project owners.
Depends on how one perceives and understand Agri investments. We are not involved in Green Houses, Vertical Farming, Poly Houses, Bottled Farming, Aquaponics etc. Conventional farming requires land to be tilled and then enjoy the harvest.
Yes. 10% area would be dedicated for member for their personal use.
Yes, the farmland is available without Farmhouse. This project is predominantly a farming project.
As the owner you are free to transfer/change the ownership however the new owner has to agree/follow the same agreement of cultivation as done originally. Any/all cost/s immerging out of the transfer has to be borne by the customer or the new party.
The offer price is fixed and we do not have any scope for negotiations.
As in cultivation, the yields might/would differ depending on many reason/s, therefore, the collective yield is divided cumulatively among all the members, irrespective of individual acreage ownership.
Based on the soil condition and water availability we have planned for three crops. We suggest Thai Guava, Fig, Vegetables & Malabar Neem.
The Farming Contract will expire at the end of 5 years from the date of registration. Thereafter, the entire project would be handed over to the customers after forming a general body and electing community leaders. However, interested customers can approach the project owners for another term of harvesting with terms and conditions decided at that point (depending on prevailing conditions).
Cooperatives provide dairy farmers with a secure market and stability for farmers for milk and associated products which have a low shelf life. Importantly, cooperatives allow dairy farmers to bargain effectively with dairy companies that purchase farm products—such as dairy processors and retailers —by increasing their market power.
Homesteads Cooperative members benefit from the many marketing services that we provide, most of these services are beyond the capabilities of any individual farmer. We maintain the cattle, feed them, take care of them and market the milk and associated products to retail customers, increasing the earning of our members manifold. Homesteads members can also receive more competitive prices from retailers and consumers based on supply control and Homesteads Brand.
Dairy prices are by nature volatile due to seasonal production and milk’s perishability. Adding to these, dairy farmers depend on unpredictable weather, live animals and changing market conditions.
Homesteads addresses the challenges in a planned and professional manner.
- Homesteads works with better planning to ensure that milk supply is stabilized across seasons.
- Homesteads address the issue of perishability by diversifying the sale of Milk and post processing the additional production.
- Our farm is located in areas with fewer extreme seasonal climate events.
- Our cattle are insured against any unfortunate event.