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Agricultural Investment perks and advantages

In recent months, investors have been in a state of shock, as they have lost a lot of money because of the COVID-19 pandemic, also known as the Coronavirus. Thus, many investors have sought to eliminate budget deficits, caused by the decline in real estate, tourism, and other investment shares, by taking out bank loans. However, instead of trying to find solutions, many of these investors are caught in the problem itself. Fortunately, a new, low-risk investment trend that proved to be superior to all other investment trends aimed at mitigating the effects of the Coronavirus pandemic, which has taught the world lessons on food security, the future of humanity and its basic needs, have started recently. What is this new investment trend? It is agricultural investment.

What is agricultural investment?

It is a new investment trend that is based on the investor’s ownership of an area of farming land to be managed by investment firms that have experienced, well-trained cadres qualified for this type of business. This type of investment attracts elite investors who have insight into the future and can predict the trends of the investment market accurately. What attracts investors to invest their money in managed farmlands? To answer this question, we need first to explain the term “managed farmlands”. It refers to a state of affairs in which an investor purchases an area of farmland from a well-known agricultural investment firm, on condition that the ownership of this land be transferred directly from the firm to the investor; thus the investor becomes the owner of the land, and then the agricultural investment firm concludes an agreement with the investor in which it undertakes to manage the investor’s land for renewable terms of 15 years, during which the firm takes all agricultural measures, starting with preparing the land for cultivation to harvesting and selling crops. Accordingly, the investor is not required to pay any costs or fees after purchasing the land, as the agricultural investment firm, after selling the crops, withholds a percentage of the profits for the service of managing the land throughout the year.

The reasons why investors are prompted to join this unique investment sector include:

1- The investor is the owner of the land and they have the right to dispose of it as they may wish, as stated in the title deed that is granted to the investor when they purchase the managed farmland.
2- No administrative fees are imposed on investors until the first harvest.
3- At the end of the harvest, 80% of the net profit is paid to the investor, while the firm responsible for managing the land deducts 20% of the net profit in return for cultivation.
4- The investor obtains high returns on investment, compared to other investments.
5- It offers a convenient payment system; 30% as a down payment and the rest to be paid in installments over 24 months.
6- All costs are paid out of the harvest income, and investors are not required to pay any additional amount.
7- Returns increase year by year, as trees grow to maturity and crop production increases.
8- The investor reclaims the cost of investment within 6-7 years, and the value of the land doubles after the sixth year, as trees reach full maturity.

Other advantages of investment in managed farmlands:

In general, investors usually seek profitable and low-risk investment opportunities in countries that enjoy stability, and agricultural and economic prosperity. In most cases, however, foreign investors face the difficulty of having title and investing in European countries. However, it is reassuring and interesting to know that the majority of European countries and some Middle East countries encourage foreign investors to make agricultural investments in their farmlands, as is the case in Spain and Turkey, for example. In most cases, these two countries, offer a wide range of facilities, including the right to own property and tax reduction. This prompts all investors of medium or huge investments to dismiss investment in construction and free trade – due to their fluctuating stock market – and seek agricultural investment that guarantees investors’ rights, as countries that sponsor these huge investment programs make laws and legislations that serve the interests of foreign investors, who would help to develop agriculture in these countries and obtain high returns that are usually twice as much as the returns of real estate or global stock market investment.

Don’t miss the opportunity to invest in a farmland that will bring you long term profits, and at the same time, an investment that will have a positive impact on your world. Be part of the farming revolution!

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