In recent years, managed farmlands have emerged as one of the most lucrative and sustainable sources of passive income for investors, with many new and inviting benefits over real estate and other conventional systems of investment. Previously, individuals with non-farming backgrounds looking to invest in managed farmlands were barred from the purchase of agricultural landholdings but the recently revised Karnataka Land Reforms Act, 1961 has opened doors for any individual or institution to invest and take advantage of the ever- appreciating value of managed farmlands.
Farmland As A Financial Asset
Managed farmlands as a financial asset are a model of investment where individuals purchase or place their money on a certain landholding and earn annual returns all while eliminating the need to manage it and skip the common hassles of owning a financial asset. The asset is managed and controlled by professional organizations which take care of the landholding as well as commercial activities. It is a new passive investment plan that doesn’t require owners to put any effort into managing the activities around their assets. There are several different activities that go on in a managed farmland that generate returns for them. This includes different types of plantations or crop yields of timber, fruits, grains, and vegetables. The investor earns not just on the land itself but also the produce from it, making farmlands a more lucrative venture for investing whose value increases with time. Revenue from the farmland however also depends on the type of timber plantation or crops being produced. Certain timber plantations such as sandalwood and teak are considered among the top-selling hardwoods for furniture and are also seen as a sign of prestige. Farmland as a financial asset is a means of passive income for the investor as well as a way to contribute their share in the environment through the production of organic and healthy foods and also the addition of greenery in the environs.
Why Managed Farmlands Over Other Investments?
Managed farmlands are essentially an agency-operated investment plan that lets owners reap their share of benefits from the produce in return for a certain percentage of the total output. Where bonds and shares are intangible forms of investment, farmlands are tangible assets meaning with a finite monetary value in physical form, they are however much more productive in monetary returns due to the resources they provide for plantation, and crop yield year-round. Also, they are a sustainable long-term investment that offers an ever appreciating value for time and money.
There is a rapidly growing demand for organic farm produce and high-class timber around the world, making managed farmland increasingly a more beneficial alternative of investment for young individuals. As the demand for resources like food, water, and timber rises consequently with population growth, land resources are bound to become a valuable asset to own. In real estate, individuals earn considerable returns but their investment is fundamentally grounded in just that, the land. Here, investors not only benefit from the increasing value of land but also the business around it. Another feature of managed farmland is that the plantation of trees improves the fecundity of soil and the biodiversity around it. The trees grown around the area also help curb greenhouse gas emissions and take a step in preventing climate change. Moreover, farmlands are not limited just as a financial asset that produces wealth but can be used by owners for a respiteful weekend or a happy excursion. Farmlands nestled in the cosy atmosphere of rural areas make for blissful holiday experiences with their relaxing ambience, lush greenery along a plethora of things to do.
Farmland as an investment proposition is quickly gaining popularity in India and as a farmland management organization, we at Siridharini strive to make your investment as hassle-free and well managed as possible. Siridharini farmlands are stretched over 10 acres of highly fecund land, complete with plantations of timber and crops like sandalwood, teak, mahogany, drumsticks, guava, pomegranate, and big amala. Our farming activities at SiriDharini are directed towards a more ecological approach with activities and techniques such as precision farming in place, we work to contribute towards a greener future.
For more information visit our website https://siridharini.in/ and sign up.
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