Most of us agree that while earning money is hard, investing it wisely is harder. Traditionally, we in India have gone with two time-tested options – gold and land. In gold we trust – for hundreds of years this has been our favourite investment, one that is credited with protecting families and honour in times of distress. However, from today’s market-driven economy perspective, this thinking is jaded.
Look at it this way. Gold sits idle and does not produce anything or create any value. The value has to increase only when someone else is willing to pay more for it – which in itself is speculative. Unlike bonds or bank deposits, your money when invested in gold, does not contribute to any kind of economic growth. And for all the optimism on its growth potential, gold has just returned 8.3%* in the last 10 years.
Now let’s look at the other favourite investment option – real estate. Firstly, land by itself cannot generate income. We can profit from it after it appreciates in value and is sold subsequently, which could happen only when there is an increase in demand for land in the region. This happened in cities like Bengaluru which experienced exponential growth from the early 1990s to the late 2010s. So people invested in plots/ land and experienced a value increase driven by demand and growth.
Next, if you wish to derive actual returns from real estate, then you have to invest in construction – residential/ commercial – risky considering the demand is dependent on the economy.
While pockets of land in urban areas have been attracting attention from buyers for long, the current oversupply of properties, congestion, cost of living in cities and other associated issues has retarded value appreciation. The real estate market in Tier 1 cities including Bengaluru is stagnated and not experiencing value growth as in the past. The demand for commercial properties has decreased and the current COVID 2019 situation is bound to redefine the workplace segment going forward. Work-from-home would definitely be the new norm with more and more companies at least in the knowledge space, opting for it.
Farmland – the way ahead
So, the question on the minds of investors would definitely be, ‘What next?’ The answer is investment in farmland. Although farmland is part of the real estate marketplace, it has its own unique set of characteristics. Returns on farmland have constantly exceeded those compared with other assets such as commercial real estate, gold, stocks, bonds and more. More importantly, farmlands have the potential to influence us as a community in more ways than one – socially, environmentally and economically.
Short term & Long-term wealth creation – a win-win either way
- Farmland is an excellent short and long term wealth creation option with a propensity to appreciate in value over time. When well maintained, the property yields periodic returns on the produce while the investment is secure and profitable considering there is bound to be a long term value gain.
- One of the most positive features of open spaces and farmlands is the natural benefits they provide. Apart from producing food and timber, farmlands provide fresh oxygen, nurture precious flora and fauna and contribute significantly to the environment.
- Unlike mining for example, which depletes resources, a rightly managed farmland is a renewable resource and stays productive in perpetuity.
The need for expertise – Our edge at Hosachiguru
While the concept of farmland is attractive from both a short-term and long-term perspective, the biggest hindrance to those who wish to venture is largely the lack of expertise in managing one. It takes specialized knowledge and time to ensure the crop is irrigated and secure, the growth is healthy, and things are taken care of.
Now, the good news. If you are really passionate about owning farmland, being a part of nature, wanting to do your bit for the environment, wanting to introduce your family/ children to the joys of nature and more… we at Hosachiguru can help you with it. We are a team of dedicated professionals with years of experience in setting up and managing farmlands.
Hosachiguru provides good-quality farmland with good water and soil management techniques to grow timber, hardwood, fruits and other location-specific produce that can help you generate passive income. Our farm experts will decide on the best possible crop based on the soil and water conditions of the property. Additionally, when you buy Hosachiguru farmland, you get to enjoy the added benefit of using your project location as a weekend/retirement home.
Let’s do our bit for the planet together – you and Hosachiguru
Sustaining the environment and leading a cleaner, greener life is now much more than an option. In fact, it is our responsibility. While the planet gasps for breath and initiatives are on globally to clean and sustain the environment, this is a great opportunity for us to create a greener environment and community while profiting from it. Wood is money and we help you cultivate the right kind of wood in your plot. In fact, it takes just 10 trees to produce enough oxygen to offset your carbon footprint. We can grow a lot more in your plot so your contribution could be on the plus side!
As a farmland management company, we have an undying passion for farming and engage in various conservation practices that help preserve the environment – collecting water runoff, planting cover crops, appropriate tillage, and more. We use precision farming techniques in managing the farmland such as using non-chemical fertilizers at the right time to effective nutrient management.
We are driven by love for nature and wish to join hands with those who look to create a positive impact on the environment. We could work together to make the world a green place and create a win-win for all!
Source: Economic times – Oct 2019
India, the second most populated country in the world, has an average of 25-30 people migrating from rural areas to urban cities every minute. Many of these people migrate to find a better livelihood and lifestyle in the cities. As per ‘Invest India’, if migration from rural areas to urban cities continues at the same pace, the Indian urban population will reach 600 million by 2030. This transition will largely affect the scenario of urban India since many of these cities are facing a huge scarcity of basic resources like water, food, shelter, etc.
The term ‘migration’ in this context, refers to moving from one’s hometown to another city, state, or country in order to grow economically and seek better lives. As per ‘Census India’ 45.36 crore Indians (37 per cent) in India are migrants, who are now settled in a place different from their previous residence. The migrant community in India faces many challenges, including the creation of new identities, health issues, education issues and exclusion that one faces in the new society. With that being said, many of the rural people who migrate to urban cities face difficulties in adapting to a new culture and language.
How can we combat migration to protect the locals?
People migrate to find a better life which encompasses earning a higher salary, living in a moderate climate and obtaining higher standards of living. Many of the people born in rural areas often do not see the opportunities available in their native regions and decide to move to bigger cities. This decision making is influenced by factors that fascinate them on the surface level. This includes experiences exclusively available in big cities such as better employment opportunity, good transportation system, malls to spend some time, parks to move around, etc. However, this can be combated if appropriate efforts are undertaken in the major portions of rural India.
Some of these required efforts that are being taken care of are listed below.
– Scientific development of Agriculture: The ubiquitous use of redundant farming techniques with the change in global temperatures has a negligible growth in agriculture. Employment of scientific and advanced future proof methodologies which consider climatic changes needs to be empowered in rural agriculturalists to secure, serve and promote farming for future generations.
– Development of social infrastructure: The Indian population is growing at a much faster pace than the development in the country. This results into the rapid need for development of transportation, communication, housing, education, toilets, etc. If the country can combat the prevailing issues, a healthier rural lifestyle can be achieved.
– Creation of better employment opportunities: India has a huge population engaged in farming, which stands as the second country in the world after China to produce maximum agricultural outputs.
If farming can be done with the use of enhanced equipment or machinery, then it can help families to live a better life. Farm production and distribution can also be channelized to ensure that they do not suffer losses in any situation.
Hosachiguru, a Bangalore based farmland management company, has been managing farmlands around Karnataka by creating ample employment opportunities for the local people. More so, hundreds of people have already been employed at different profiles while ensuring their economic growth which is equivalent to their growth in bigger cities. Additionally, these individuals also contribute their bit to the environment through their work.
Furthermore, these farmlands are available for potential buyers to purchase. While it offers them hands-on experience of farming practices, it is also a non-taxable secondary means of income that they can look forward to. To know more about Hosachiguru and its projects, visit page.
Agriculture
Sandalwood was once considered as the primary source of Mysore state economy where the entire budget was planned based on sandalwood.
I can think of no better way to pay back to mother-earth during any kind of crisis thanserving on farmland or using my experience in agriculture.
In some ways, farmland is even better than gold or silver. At least farmland is an intrinsically useful thing. It provides a tangible yield in the form of good things from the earth. We all have to eat. As consumers trim their sails, they‘ll give up a lot before they give up their calorie intake. In fact, worldwide, the per capita calorie intake is likely to rise, while quality soil will become a scarce commodity. Altogether, I see five big reasons why spending money here is as good as green channel …
Reason #1
Grain inventories are falling to their lowest levels in more than 40 years
Obviously, we can’t continue to dip into inventories. The natural response you would expect to see is rising prices for grains and for the farmland that produces them. Global grain inventories, drought pending, are expected to rise this year, but will still remain well below historical level.
The big thing to keep your eye on here is stocks-to-use ratio. That compares the amount we have on hand to the amount we’re using. The higher the number, the closer we are to having fully stocked granaries. In the case of big commodities like rice, wheat and soybeans, the cupboard’s pretty bare.
Reason #2
Grain consumption is on the rise
The amount of pressure on the global food supply network is enormous. You can see the steep downward trend in wheat supply in the chart below.
Why are we eating so much more grain? The big factor here is meat. Hundreds of millions of people in China and India are joining the middle class. As people get wealthier they eat more meat. And more meat requires more grains to feed cattle and hogs. It takes 10 pounds of grain to produce one pound of meat. Because of that, most of the demand growth for coarse grain and oilseed meal will come from livestock in developing economies or the countries feeding them. So long as the middle class expands, you can be sure meat and grain consumption will follow.
Reason #3
Biofuels are driving agriculture demand up to new levels
Most every oil-consuming country has biofuel targets in place that will kick in over the next five years. These places include the U.S., the EU, Canada, Japan, Brazil, India and China. To meet their targets, we‘ll have to commit some 240 million acres to biofuel production.As you can see, the biofuel craze puts more pressure on farmland demand. And, there are other pressures as well.
Reason #4
Aerable land per person is falling
We are losing quality topsoil faster than we are replacing it. Quality soil is loose, clumpy, filled with air pockets and teeming with life. It’s a complex micro ecosystem all its own. On average, the planet has little more than three feet of topsoil spread over its surface. The Intelligencer calls it the shallow skin of nutrient-rich matter that sustains most of our food. Replacing it isn’t easy. It grows back an inch or two over hundreds of years.
Our farmers are in the mining business! Yes, the soil is incredibly deep, but it is still finite. For every bushel of wheat produced, we lose two bushels of topsoil.
We lose topsoil to development, erosion and desertification. Globally, it’s clear we are eroding soils at a rate much faster than they can form.
Reason #5
Low water supplies cut down farm productivity
China is a biggie to watch when it comes to food supply dynamics. It feeds 20% of the world’s population on only 10% of the world’s arable land and with only 6% of its water. China’s water tables are falling too. In parts of its traditional breadbasket in the north production of wheat and corn is in jeopardy. Chinese officials are well aware of this urgent need.
As the Financial Times reports: The country is leveraging heavily in agriculture. Its agriculture budget increased 27% in 2007, 38% in 2008, and about 20% in 2009. No other big country, barring India, has increased spending on farming so much, says the FT. Still, increasing output will be a challenge.
It also means that any way to secure better water supplies will be worth its weight in gold. Growing crops and keeping livestock hydrated uses three-quarters of the world’s water. That’s a lot of water, and China already doesn’t have enough.A United Nations report puts it in stark terms: The population of China, India, Pakistan, and other big Asian countries will grow 1.5 billion by 2050, doubling the continent’s food demand. Some of the best returns this decade will come from spending money in agriculture , and the kinds of companies that keep us supplied with water, food, and energy.
India has been a prosperous country for time immemorial with agriculture as its main occupation. Our country has been a pioneer in farming practices; spreading its fame and popularity across geographical boundaries. But the exponential increase in population and the advent of chemical fertilizers and pesticides provided a quick fix solution to farmers to meet the ever growing demand for food. The entry of GM crops has made mankind guinea pigs. The result? Soil rendered unfit for crops owing to saturation of chemical levels and severe ill effects on the consumers. New diseases have found their way into the dictionaries and our bodies too.
Farmers all over have realized the hazards of quick fixes and the immediate need to go back to our age old farming techniques. All over the world and especially in India, farmers are voluntarily getting themselves educated in agricultural methods which are not just profitable but also ethical. So what is eco farming and what are its benefits? In a nutshell, eco farming conserves our precious resources, enhances production and productivity to benefit the farmer’s pocket and also the society’s nutrition. Let us take a brief look at a few of these methods that are not just ecofriendly but also sustainable.
– Farmers are moving away from agricultural practices that involve the extensive use of synthetic fertilizers and pesticides and moving on to natural manure – mostly compost and pesticides like neem leaf juice. Choosing natural disinfectants over synthetic ones increases the soil quality and makes the crops more immune to diseases
– Organic farming is the new buzzword. Though a recent terminology, the concept and practices have been in practice from ancient times in India. Though there has been a lot of lobbying about the significant reduction in productivity in resorting to organic farming, this is far from the truth. The central theme of organic farming is about crop rotation. This said, the farm does not have to remain idle after one harvest. The same land can be used to cultivate wheat, lentils, fruits and vegetables on a rotation basis. This not only promotes variety in productivity but also increases the soil fertility for the next sowing. This is the basis of organic farming – it’s about how to grow than how much to grow. Also, due to constant rotation, pests find it difficult to settle and proliferate making the basic practice itself a natural pesticide.
– The biggest challenge Indian agriculture faces is competing for water resources with industrial growth and domestic growth. Scientists, researchers and the government have to devise and implement better management water management methods to make water available for irrigation. It is now critical to enhance irrigation productivity with the concept of “more crop per drop”. For example, drip irrigation, piped conveyance and other efficient mechanisms for delivery of water is of critical importance with the whole world facing a majorly impending water crisis.
Hosachigru realizes and understands the urgent need to merge tradition with technology and has adapted modern techniques that optimize the use of resources with zero residue harvest. Our products include fruits like chikkoo, pomegranate, custard apples and lemons from our Pure Pik collection along with timber. Science and innovation are our building blocks to yielding more than 1000 tonnes of fruits every year
Agriculture is the main occupation of the rural population and is India’s backbone. The government has to develop stringent norms in place regarding agricultural practices and it needs to be done before a crisis actually hits us. Improving the living conditions of our farmers by educating them on safe and sustainable farming methods to provide better yield is the only way our country can move forward and regain its lost glory which is now a thing of the past.
Most of us dream of owning a piece of agricultural land, where we can fulfill our passion for farming as well as use it as a weekend getaway. Investing in agricultural farmlands in India has great advantages; the major one being that income earned from and the profit made from selling the farmland are free from taxation. It also seems unlikely that it will be made taxable over the coming years.
India is the second most populous country on earth that occupies more than 17.5% of the population and is known for its agricultural farming practices. India, like many other countries is really concerned about food security. Thus, rural development has become one of the primary areas of focus in the present horticultural and agricultural development programs.
An opportunity for long term wealth creation
For most of the Indian middle class, gold has been the sole-saviour for keeping up with inflation. The returns through fixed deposits and bonds do not suffice to cover inflation and the share markets have been unstable. It is time to think what other opportunities can be a good long term investment other than investing in the shiny metal. Owning agriculture farm plots is a tremendously rewarding long-term wealth creation opportunity, especially if you are staying in a metropolitan city like Bangalore.
Well, decades on and the agriculture sector still looks like a pretty good bet, which provides the buyers long term growth prospects and tax benefits. Agricultural land investment in India offers a high level of capital security as it is backed by a physical property. With the limitation to the supply of agricultural land, anyone who owns a piece of land is rightly positioned and highly secured. The interest in investing in agricultural land is on the rise across the country – Be one among the early movers to benefit the most! With due diligence, you can acquire agricultural land as a component of your investments.
For self-employed and salaried professionals residing in cities, going through the process of buying agricultural land and cultivating crops can be time-consuming, tiresome and a tedious process. To make life a little easier for such individuals, Hosachiguru offers a unique long term wealth creation opportunity for people to own farmland and take up agriculture.
Hosachiguru is a leader in timberland in India and has cultivated over 500+ acres of timber lands over the last 5 years. Timber is a safe option as it is pest resistant and demands very little water compared to other crops. It is not only a long-term wealth creation option but also timber lands play a very important role in creating a positive impact on the environment, soil and ground water. The demand for timber in the country has led to an increase in the commodity price which in turn forms the source for higher returns.
Let’s look at the various advantages a farm land offers:
– Owning an agricultural farmland is a fruitful option for creating long term wealth.
– The income earned through agriculture is free from income tax.
– There is demand and supply mismatch across the country, which leads to the increase in agricultural commodity prices.
– A farm plot is a stable profit-producing asset that has stood through the test of time.
– It has been the storekeeper of fortunes, wealth and value.
– You are sure to reap big benefits on the long run as the value cherishes over time.
– A great hedge against inflation
The right solution to your never ending search
If you’re looking for a long term wealth creation opportunity in agriculture around Bangalore, Hosachiguru has the solution.
Hosachiguru follows simple steps in its farming model wherein it takes the initiative of procuring agricultural lands based on the soil conditions, water availability and accessibility. Later on the land is plotted into smaller parcels and sold to buyers.
Depending on the crops selected for cultivation by the buyer, it plans, designs and develops the land. It then prepares the soil for farming, sets up a drip irrigation system, hires labourers to work on the farm, obtains electricity line for the farm and does all the necessities needed for farming on the land.
Hosachiguru is precise in usage of resources and careful with the farming practices it employs. It adopts cutting-edge techniques to ensure maximum productivity. It employs the use of precision farming, a method that helps to grow more crops by using limited or fewer resources and reducing production costs.
Regardless of what your budget may be, Hosachiguru offers its customers different options to cultivate long term crops like Teak, Melia Dubia, Sandalwood, Mahogany, tissue culture teak, etc.
Legal obstacles of buying a farm land
In Karnataka, only a registered farmer or those from farming families can buy agricultural land. Therefore, before buying any farmland, you must know the relevant rules prevalent in the state as the rules vary from state to state. To counter this issue, Hosachiguru owns and works on lands in Anantapur district of Andhra Pradesh, where anyone can buy agricultural land irrespective of whether or not they are farmers.