FINANCIAL BENEFITS IN AGRICULTURE (1).

…….. 3 things you need to know……………………………

Having highlighted the reasons why banks shy aware from some agricultural venture, it is important to note that agriculture in any form is a very lucrative and rewarding venture. There is a known fact that every living creature needs food to survive. The potential clientele in the sector cuts across every living being.

In harnessing the benefits accrued in the sector it is necessary you have in the following information at your disposal.

1.   The kind of venture you want to exploit; as mentioned earlier in my posts, agriculture is majorly divided into two; plant cultivation and animal husbandry. For plants is further divided into food crops and cash crops. Irrespective of the type, it is highly profitable. You need to decide your cultivation preference, either crops or animal husbandry. This needs to be accompanied by the desired knowledge about that chosen venture, plants or animal. Get some basic knowledge about the fundamentals to the propagation of the crops, as well as the animal husbandry chosen. The processes involved in the rearing stage, that is the life span and the possible challenges that are often encountered in the process. Every agric business has got its peculiar challenges.

2.  Get the desired land; this we have in abundance in Nigeria getting one isn’t much of a challenge. The topography and soil structure must be such that should support your preferred agricultural venture. There is no point getting a huge limestone deposit site and intend to use it for agricultural purposes its dead on arrival. There are huge expanses of land in the six geopolitical zones of Nigeria that are very suitable for farming. These prime plots are less than N2million naira ($20,000) for one to two acres of land. With such size or even less, you could considerable make good income for yourself in your chosen agribusiness. Putting into consideration your cost and revenue ratios, making profit will be a mile stone away.

3.   Get knowledge; this will help you to create a pedestal to which you can lunch out. Do not get tempted to starting too big, test the waters and then sail along. Just as we advise clients it is important you know more of the risks involved and how to avert or better reduce the risk to the minimum. It is only when risk is reduced revenue rise above cost that profit is brought about. Agriculture involves some level of financial planning and intelligence and not just the cultivation or rearing aspect alone. To this end we are planning to hold a comprehensive training session, looking at three (3) agricultural models that anyone can venture into. We would be holding the seminar in Lagos, Nigeria in September. The precise date would be communicated to you in this blog.

Anyone can be an agric investor irrespective of the profession, lawyer, engineer, and clergy, whatever. It is a venture that encompasses any discipline. It’s basically about feeding the populace, the market is well over 130million people to feed, why not take the plunge.