Agribusiness is a multi-billion dollar industry. Every other sector of the economy largely hinges on agriculture in all of its different forms. It is not surprising because food is the primary source of sustenance. Since food is indispensable, any who invests in the business is often guaranteed success. Wherever you may be, the room for investing in agriculture is not saturated. You can join the ranks of millionaires who make money through farming.
Everyone has not always made money though. Due to one reason or the other, millions of dollars are lost every year around the world by farmers. Such loss can be prevented if the prospective investor is careful enough before investing his money. This article will guide you through some of the factors you need to put into consideration as you consider investing in agriculture.
Experience And Interests
Whether you are investing in poultry, maize farming or agricultural export business, the need for you to develop a level of interest is important. This is primarily because when challenging times come, the interest you have cultivated is what will keep you going till you breakthrough. If you like what you are doing, you will put in all your best against all odds.
The interest you have will make you develop your skills and educate yourself properly in the genre of agric you are willing to invest in. Hence, you need to seize every opportunity at your disposal to empower yourself with information. Hence you need to attend seminars, research online, buy e-books, and even do outright apprenticeship. Do not learn about too many branches of agriculture at a go. It is better for you to be properly grounded in an aspect than to have a brief idea about 100 other aspects. Do not be a jack of all trade, master of non.
It is after you are sure that you are grounded in an area of agriculture that you should go ahead and invest in it. Whether you believe it or not, whether you are managing it yourself or you are delegating the management to someone else, the more experience you have, the more success you will record as you carry out your agribusiness.
Natural Factors
As noted earlier, it is possible for a single agric investor to lose millions of dollars in an investment. Sometimes, natural factors are responsible for the losses experienced. This is not accident sometimes, it is accident that can be foreseen and prevented.
Hence, when investing, do not invest in agribusinesses in areas that you know are prone to flood, drought or excessive hurricanes that may damage your products before they are ready for harvesting. Even when you are guaranteed that too much water or lack of it will not be a problem, you still need to be wary of wild animals and birds that may do early harvest to your own detriment. In such instances, measures can be put in place to scare away such predators.
Be Mindful of The Season
Sometimes, planting and breeding can only become successful if they are done at the right time and season. For example, it is not advisable to invest in planting maize during the dry season or when the raining season will go. Even if you are going to irrigate it through other means, as a starter, it is advisable to rely on natural rain so that you can have a good yield.
For one who wants to invests in poultry in Africa, it may not be advisable for you to do so during the harmattan period. Even if you have enough to warm the chicks till they survive that period, research has shown that birds easily get the flu this season leading to high mortality rate.
Environmental Laws
If you do not want to experience failure as you invest in agribusiness, it is important that you get conscious of the environmental laws applicable in the area you stay. Hence you should not locate your farm in residential areas where government may end up shutting down. Even when the law does not restrict you to a geographical location, it is not wise if you constitute nuisance in your neighborhood because you are a farmer.
In that light, you should not locate your sty or your poultry near residence as the odor that may be emitting from there will not make them comfortable.
Land Space Available For Agribusiness
The land at your disposal will also influence whether you are investing in animal husbandry or crop production. The more space you have, the better for you as you can combine both. If you cannot combine the two however, it is better to make do with what you have.
If, you want to invest and export cassava, for example, you will need more than a plot of land so that you can plant and export to make enough money. If you want to rear snail however, a land space of 6×12 feet will suffice for now.
Trusted Manpower
The more trusted hands you have to supervise and manage your agribusiness, the more you should invest. Many farmers have gone bankrupt because they do not have trusted people to help supervise the farm affairs in their absence.
If the employee are not trustworthy or if you or your close relative will not always be available, it is not advisable to invest in poultry. Your staff may steal your eggs and sell without informing you. The same is applicable when you want to invest in fishery. Your staff can sell your fish without declaring to you.
What About The Market?
As an agribusiness investor, it is a waste of time to invest hundreds of thousand or even millions only to meet with poor sales. So, Mr farmer, know the market before you decide what to plant and what too breed. In some countries, the government subsidizes agric produce so much so that it is a waste of time for a private farmer to go ahead and plant some crops.
The bottom line is know what is in demand in your locality and focus your strength and interests on that. It is then you can wear a smile as a successful farmer.
Do You Have Enough Finances?
Even if you have fulfilled all the obligations of getting trusted hands, having enough land space and you are mindful of governmental laws, your budget still plays a pivotal role if you want to be successful in your agribusiness. So do not start an investment that you will not be able to see to its end. It is better to start small and grow gradually till you finally become big.
Do Not Bear Too Much Risk
The need to start small and grow gradually cannot be overemphasized. Do not put all of your eggs in one basket. When planting crops ensure you do not use areas where pests can easily destroy before you harvest. Even at that, it is advisable to have pesticide at hand.
Poultry and fishery also come with a lot of risks for a an agriculture greenhorn. If you must invest in it, start small and apply all the precaution of cleanliness by changing the water often and cleaning the environment. Do not tarry when it comes to giving your poultry drugs and food.
You Can Make It
Yes, do not be scared to put your money on farming. It is still one of the most lucrative businesses in existence today. Countries like Russia and even Nigeria spend billions of dollars importing foods into their country. Even if you are not starting big now, the market in your locality can serve as a springboard for you to reach the world. Have a successful farming!
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