Why you should invest in Agriculture

Over half of all Nigerians invest their hard-earned money in some business that is not profitable.

In this article we take a look at agriculture and the investment opportunities that you could be missing out on.

What is Agriculture?

Agriculture in Nigeria or in any other part of the world is the science or practice of cultivating the land and keeping or breeding animals for food. From this definition, you can see that there are two distinct branches or parts of agriculture. These parts are: cultivating the land (crops/plants) and breeding animals. These two parts of agriculture are both very wide with each of them having its own universe. The aspect of agriculture that deals with crops is called Agronomy. Agronomy is the science concerned with the relationship between crops and their environment. While the aspect of agriculture that deals with animals is called Animal Husbandry. Animal husbandry is the care and management of cattle, sheep, horse etc.

Why Your Investment Is Good for Agriculture

Farming is a learned skill that is handed down along with farms generation after generation. Supporting farms reduces the threat of foreclosure from the bank and allows farmers the capital to maximize their yields and productivity.

There is also a push for farmers to follow sustainable Agricultural practices. This consists of meeting the needs of the current population without making future generations compromise to meet those needs. The growing consumer demand for sustainable food is pushing big corporations to small holders for raw materials. This type of corporate commitment and higher standards in the connections between buyers and growers, is in turn leading to increased investment opportunities.

Why Investing in Agriculture is Good For You

Investing in agriculture is less risky than investing in the Stock Market, as you are investing in a physical plot of land whose value will only appreciate over time. However, it is a long-term venture and your returns will vary depending on the farm’s location, current commodity prices and other factors, ranging from 3-5% for commodity-based land, or 10-15% for specialty crops.

The consumption of protein throughout the population is shown to be steadily increasing. Therefore, becoming an Agric investor in a commodity like palm oil, cassava, poultry, vegetable, peanut for example, is appealing to current health trends.

Also, worth taking into account is the NGN1 trillion that the Nigerian Government is due to spend on agricultural subsidies over the next decade. That is an increase of 56% from the last time money was injected into agriculture to address issues. This cash injection should help to increase the return on your investment.

As populations continue to grow, so does the need to increase agriculture production. The United Nations Food and Agriculture Organization estimates that production will need to increase by up to 70% in the next three decades in order to meet the demands of an extra two billion people.

This suggests that investing in agriculture can be a strong and fruitful venture, not only for you, but for a community, as land continues to appreciate year after year.

At Quemems Farms Nigeria Limited we can help you set up and manage your farm, our company is duly registered and open for visit from 8am to 5pm, working days (including Saturdays)

For more enquiries and consultancy, pls contact us on 08159332202 or  Email: info@quememsfarms.com