• ISO 9001 : 2015 Certified Company

Farmland Investment is always a decent option for
today and tomorrow!

Editor's desk | Nov 26, 2020 11:00 AM IST

With the prospering buying power of investors today in India who are now surveying for creative opinions to reap returns from their investments. One such means is investing in agricultural farmlands.

While some investors keep such farmland as an asset in their portfolios, there is a category of investors who influence the growing and thriving market of organic fruits and vegetables, to enhance their earnings. Several experts have acknowledged that farmland investment is a stable and prudent alternative for investing one’s funds as the return on investment is usually higher as compared to other real estate investments and also entrusts security to investors' money. We also know the farmland market by the name of - "agro-reality", this real estate segment for such investors is thriving, particularly after the COVID-19 pandemic.

Investors from Cities are now glancing at the returns potential of farmland in the suburban or peripheral regions of large towns and state capitals. While the land is cheap, in comparison to metropolitan land, investors anticipate some strong and active returns in terms of resale usefulness.

The returns from farmland investment are bigger in developing and expanding areas, where there is a probability of upcoming infrastructure and construction operations, such as an outstanding economic zone or nearby a highway. It is promising, if the farmland is fixed in an area where some government scheme is to be inaugurated, or if it is encompassed in the master plan of the region. Chances are that such a chunk of farmland will earn an increased value, in the future.

Advantages of investing in agricultural land - "Agro reality"!

An agro reality plot can safeguard long-term returns if it is in an area where the administration has scheduled some infrastructure proposal promptly. Further, the compensation, in the case of accession by the government, is higher for rural farmland than that for metropolitan land. Numerous state administrations are also scheduling a farmland pooling policy, for provinces where the city is broadening. If you become a proprietor under the farmland pooling policy, you will get from the farmland investment that you have made.

Rates of agricultural farmland are anticipated to boost, particularly around urban areas, owing to the accumulating market for accessible housing, which is only reasonable along the boundaries of urban cities. Farm Land in such regions is also in demand, for municipal and classified projects. Nonetheless, you will require to expend a considerable amount to purchase the land, and therefore, you should encompass all thee risks before you enter the farmland agreement.

Advantages of buying agricultural farmland

  • Farmlands guaranteed long term returns for your assets portfolio.

  • Nowadays government compensation is higher if your farmland is obtained by the local government for the construction of dams, highways, metros, or any other government undertaking.

  • Being an farmland owner can give you to participate in a land pooling policy.

  • Also limited supply, never-ending demand generates the farmland more useful.

  • Farmland rates depreciate more promptly than any other type of real estate.

  • There is usually no difference between the purchase and possession rates of the farmland.

  • Maintenance cost of farmlands is usually low.

Things to know before you invest in farmlands

Farmland Investors should contemplate the availability of fundamental utilities such as electricity or water supply, before acquiring the farmland. Apart from this, the buyer should also examine the land’s annual property-tax responsibility and evaluate the total extent of the farmland from the closest neighborhood. When people reckon with any real estate investment possibilities, their initial preference is usually a Duplex house, an apartment, or a plot. Nonetheless, from the viewpoint of return on investment, farmland may be an excellent alternative.

Before buying farmland keep in mind the following

  • Always be realistic about what to anticipate from inhabiting farmland of your preference.

  • Always assure that the farmland to be purchased is registered as legal farmland under the government rules and regulations.

  • Always check the previous owner's details of the farmland who bought it and from whom you will be purchasing the farmland.

  • Always enquire with the regional body government and revenue departments about the record of the farmland purchased.

  • Also, encumbrance certificates should be verified to know about former owners and registration of the farmland under the state government laws.

Why Investing in farmland is crucial for your asset portfolio?

Acquiring farmland has benefits, one being that revenue reaped from and gains made from selling the land are free from taxation. But regulations considering farmland differ from state to state. In some states, comprising Telangana, anyone can acquire farmland irrespective of whether or not they are agriculturists whereas in states such as Karnataka, only registered farmers or those from farming households can purchase such farmland. Accordingly, before buying farmland, one should understand the applicable regulations in the state. Also, there is a ceiling on the proportion of farmland a person can acquire, and it fluctuates from state to state as every state is not runned by the same political party.

Do you love to Invest in an Agricultural Land?

In the past few years, we have come across various imminent personalities like film stars, Industrialists, sportsmen, politicians, and various other wealthy individuals who have heavily exhibited scrutiny or invested in farmland. Along with these, numerous people have purchased farmland properties across the country because it is the best investment alternative that compels an alluring asset portfolio and diverse aspects along with reasonable gains under the new and prospective market momentum. Besides, numerous surveys performed across an array of various real estate markets have illustrated that farmland has massive income potential in terms of investment.

How and Why Investing in a Farmland can be Beneficial for today and tomorrow?

  • Buying farmlands as corporate social responsibility ( CSR )

Nowadays with the government of India mandating the public and privately registered companies to invest in Social Responsibility initiatives such as planting trees on huge acres of land, opening schools on land for poor kids especially supporting female education, Building constructive roads, dams, or water sources for people residing nearby your corporate district. Keeping all the above mentioned social initiatives in mind, people can easily do farmland investment on farmlands and thus utilize the same for many social and constructive events for poor people and the environment. Therefore sending optimistic measures of eco-friendly tactics. Also, if companies try to ignore or avid CSR initiatives then a heavy penalty is usually imposed on them by the government of India rules and regulations, to avoid such legal penalties companies should rightly invest in farmlands and simultaneously doing their bit for society.

  • Farmland is a Significant Inflation counter

Nowadays, farmland properties commonly boost shortly than inflation, establishing farmland a beneficial inflation counter tool and wealth saving medium. This may extremely captivate investors who are interested in government policies considering inflation rates in real estate markets.

  • Farmlands are a prudent Income generating asset

In distinction to other mainstream alternatives such as equity & precious metals, farmland also equips a fixed income to the investor, rendering it a valuable alternate for investment rather than investing in risk-taking mutual funds and bonds. Due to fluctuation in the prices of gold, silver, copper, these precious metals are no longer alluring for an investor's lint of view. Instead, farmland has now become a new gold mine for investment.

  • Various Tax exemption for farmland Investment

Nowadays the government of several states provides various investment opportunities in farmland that requires lesser tax to be paid. Thus attracting a greater amount of investment in farmlands. Tax advantages have been given by various state governments for investing in farmland. There are numerous tax advantages for investing wealth in agricultural lands.

  • Supplementary earnings from farmland

There are numerous aspects to make earnings from farmland, and numerous of them are independent of the harvests or crops being grown. If the farmland comprises an enormous body of water, water rights can be bought or borrowed. For farmland that is uncovered near a crucial road, there may be an opportunity to produce earnings from hoarding positioned on the territory or from radio towers that are assembled. In some examples, it may be reasonable to sell recreation like Farmland picnics, Trekking, or hunting leases on a bush or near canals.

  • Trading on farmland stocks

Nowadays Bombay stock exchange and the National stock exchange of India offer these facilities to trade with farmland companies and buy their stocks or equities from farmland companies. This strategy of Betting on farmland stocks also proves out to be beneficial in the long run and thus these stocks of farmland that is accumulated in one investors portfolio act as a huge wealth accumulation. Hence farmland land investment whether invested via stocks, equities, or liquid land proves out to be a thumbs up gambit.

  • Farmland is a long-term investment

Investors must acknowledge that farmland is a long term investment. Return on investment can fluctuate from 12 months to 10 years before glimpsing your crucial returns. They must furthermore acknowledge there are small-term instabilities in property taxes, and returns are generously measured over a longer duration in farmland investments. Generally a high level of patience is a must for investors who are looking for the long term benefits of farmlands.


We have strived hard to provide realistic ideas about the specialized and economic usefulness of investing in farmland real estate. Also, Farmland returns have no direct connection with traditional asset portfolios such as stocks, mutual funds, equities, and bonds which require a greater amount of risk-taking capacity in the viewpoint of an investor. These aspects make farmland an impressive and lucrative investment alternative that can boost to decrease the consequence of market volatility in the longer run.

Farmland investment gives both operating and capital returns in the feature of a combination of rental income and value consideration of the asset. As per the market research, total returns from farmland have frequently outpaced prominent assets such as stocks, bonds, equities

An investment in farmland comes out to be an excellent asset that is improbable to downgrade. Also, past research exhibits that farmland has demonstrated strong capital security aspects over lengthy periods. Well-managed and well-maintained farmlands are a completely renewable resource that remains profitable for today and even for tomorrow. Farmland's investment acts as a blessing in disguise for investors aiming to reap profits.

Call Back
Mail Us

We will contact

Get a call back