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Benefits of investing in agricultural farmland in India!

Editor's desk | Dec 05, 2020 09:00 AM IST

We all have witnessed unprecedented changes today after the Corona Pandemic on earth made a drastic recession in our economy and our lifestyle. It was completely unimaginable to think that humans could suffer situations like lockdown too.

But, with the Covid situation getting better now, we are in a state to come back to our normal mode. Our Indian economy so far has been dipped in the recession phase due to the repercussion of Covid, But there remains 1 sector which continues to flourish and boom respective of global markets. Yes, you guessed it right. Indian agriculture is seeing rapid demands be it in terms of its food production, Real Estate, or organic farmland. The importance of agricultural farmlands in India can not be food underestimated. Food remains the most crucial substance for human survival.

Agricultural startups employing in areas such as farmer platforms, precision agriculture, Agri-biotech, post-harvest technologies will be high on investors’ radar in the year ahead. As the world prepares to wrap up the corona effects, we will see skyrocketed investment in agricultural businesses in India. Also, inarguably farming industry was the only industry that remained unaffected by the Corona Pandemic in 2020. Food is the quintessential requirement of human existence . Agriculture is the backbone of our economy and smartly investing in agribusiness can prove out to be highly beneficial by sowing small investment and reaping large profits ultimately.

FMCG( Fast-moving consumer goods ) and agriculture are the new gold mines of India. Today, in this blog I will tell you the benefits of investing in agricultural farmlands in India. So make sure you read till the end as the knowledge that you will absorb from this blog can do wonders for your assets portfolio.

What is so lucrative about investing in Indian agricultural farmlands in India!

Agriculture is undoubtedly contributing to the majority of the Indian economy today, it's importance can not be underestimated. Nowadays investing in gold, silver, or other fancy metals can not be a wondrous investment due to the volatility in the share markets across the globe, hence it is always advised by numerous market experts to invest prudently in metals only if you have a thorough knowledge of every segment of the market. When we talk of the benefits of investing in agricultural farmland then the list is never-ending as food dominates almost every Industry moreover these agricultural farmlands can be used for various recreational purposes.

The probability of higher gains is always there while you purchase farmlands in India. The Return of Investment comes with the buying or investment in agricultural farmlands. The only condition applied is that you have to keep a high level of patience before and after investing. With time and patience, one can become a successful investor in agricultural farmlands in India.

With food demand anticipated to increase up to 98% by 2050, farming markets will revolutionize like never before. Farmers across the globe will need to boost crop production by broadening the quantity of farmland being wielded and by enhancing productivity on prevailing land. Farmlands are a great significant asset on the planet. This is why considering possession of farmland can be an extremely beneficial move.

By 2050 the earth's population will thrive to over 10 billion people. In addition to 3 billion more people, the middle class will accumulate at a remarkable rate. An extra 5 billion people will embark on the primary class resulting in food demand. The ordinary Indian farmer's age is 45. Also, many farmers attain the retirement age, and as a result, farmers put their land on sale. This ready-made land with full crops grown and perfectly arable soil can be brought by people who further invest in this land and later reap benefits from this land. Hence, buying farmlands from farmers is also an excellent investment.

Agriculture farmlands as long term wealth creation

Long term Wealth creation is the strategy of investing in various asset classes where the investments will encourage filling your family's necessities. These investments should be made carefully by taking advice from professionals so that can generate a stable source of income, helping one to fulfill their aspirations. Long term Wealth creation procedure always commences with setting financial goals along with proper asset allocation. Then these goals have to be categorized based on the amount of period you invest. For example, what if an investor wants to accomplish returns in the approaching few years will be short-term goals. Furthermore, there can be medium-term goals and long term goals.

Long-term Wealth creation in the real estate market is modest and manageable when done right. Discipline and obligation to investing are fundamental to develop wealth. Starting early in the career will enable multiplying returns by grabbing the benefit of the power of compounding. With various real estate investment opportunities available in the market, I.e farmland investments, as it helps in wealth creation. Further, long-term wealth creation made by keeping in mind your life goals and financial goals will keep investors motivated in their retirement too!

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 far 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 avoid 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 an excellent source of real estate investment for future generations

Typically, this happens in India that during the marriage of children parents usually tend to purchase or gift farmlands to their children as a harbinger of happiness and blessing for the newly married couple. Also, on the birth of their children, grandparents gift farmlands, and agricultural plots to their kids as a token of love. Thus preserving and buying farmlands is a beneficial real estate investment for future generations to come.

Windfalls of investing in agricultural farmland

Here are some of the numerous advantages that investment in agriculture can furnish

  • Agriculture products are further stable compared to other ready-made food products. This means these food products can easily be grown on your farmland and sold in open markets for public consumption. You can fix the rates accordingly you wish!

  • Farmlands are often passed from one generation to another, thus passing a family legacy to their children. This is something which we Indians are used to. Buying farmlands and passing them to your children means a lot of Indian household's families.

  • Farmland investment bestows prudent opportunities with increased agricultural products which upon selling in markets gives marvelous returns.

  • Inflation doesn't make a greater amount of difference to your farmland investment. But make sure you always have the advice from a well-experienced farmland investor.

  • 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.

Reaping benefits by selling agricultural produce of farmlands

Investors can earn money from harvests or crops that are farmed. Broadly harvests are annual, but in some locales, there can be numerous yields per year. In special cases, these yields are conserved via long-term agreements with inhabitant farmers or from buyers who concede to pay for the crops. It is furthermore crucial to point out that crop insurance, which protects the farmer in the circumstance of a tragedy, also guarantees the investor. This implies that even if crops are destroyed or their dividend dwindles due to drops in crop rates, the farmer will still receive funds with which they can reimburse their farm lease.

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

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. The maintenance cost of farmlands is usually low.

Nowadays the government of several states provides various investment opportunities in farmland that require 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.

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.

Various areas of the agricultural farming business

The prime emphasis on which the agricultural entrepreneurship is getting magnified is Agri Inputs, Post-harvest and Food Processing, Farm Retailing, Natural Resource Management, Farm Mechanization, Precision Farming, Agri & Agri health services, ICT in Agriculture, Dairying, Biotechnology, Sustainable Agriculture, Agri Education, Supply Chain Management, Livestock, and Fisheries, etc.

Why Investors should invest in the agricultural farming business?

Investors choose numerous phases of the agribusiness company for investing as there is no set regulation for this. They have their domains regarding the various agribusiness sectors expansion cycle phase. These investors invest in majorly five stages banking upon their specialization i.e., Seed, Start-up, Early, Expansion, and Mezzanine. Some other nomenclatures are furthermore there in exercise. Nevertheless, they are a bit loosely distinguished when it comes to farming businesses. The amount invested in the farming business can be from 100 crores to 500 crores for a single large piece of farmlands. Government investment may even exceed this limit. Also, various mid-size startups might invest 59-60 lakhs initially.


We have left no stone unturned in explaining to you the detailed benefits and usefulness of buying agricultural farmlands in India. Apart from reaping benefits from Harvest and crop production, farmlands can be used for recreational activities such as opening a guest house on your farmland or leasing it for opening a school, college, or university. Investing in farmlands is a way better alternative than investing in metals like gold and silver. Also, with the government giving various tax reforms, benefits to investors have paved wondrous opportunities in Indian agriculture. Also, major startup entrepreneurs are now betting on agricultural lands due to the skyrocketing demand for food production, green technology, and organic farming production.

Thus, Investing in agricultural farmland so far remains the most sophisticated and lucrative alternative if done smartly and prudently.

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