SECONDARY INCOME FROM AGRICULTURAL INVESTMENTS
Agricultural investments have traditionally involved high upfront capital requirements, and long gestation and payback periods. Agriculture is a capital-intensive activity, both in the form of the working capital required to finance fertilizers, seeds and other inputs through the annual campaign, as well as the long-term capital for equipment, machinery, silos and the acquisition and maintenance of the land itself. Once the plants enter their production phase, usually four to seven years after seeding or planting, investors can start to reap the benefits of their investments.
However, by adding secondary income generating operations, such as eggs, honey production, and agroforestry to the same farmlands, we can break some of these traditional notions. Farms are natural investments that require trees to grow and then enter into the crop cyclical calendar to produce harvests and returns. It is natural for animals and crops to co-exist around trees. So, while waiting for the first harvest, products from animals and plants can be used to generate a second income for our investors.
ADVANTAGES OF SECONDARY INCOME
Very few people would argue that a secondary income is an important goal, that all of us should aim to develop as early as possible in our lives. With volatile political and economic landscapes in virtually every country, job security is at an all-time low. Even jobs at multinational companies in some of the most stable economies, stand a risk of emerging technologies, AI and robotics threaten them with redundancies.
In addition to the income security that secondary Income provides you, it also gives you the freedom of time. When you’re less shackled by the necessity to earn to meet your monthly financial obligations, you have the privilege of time. This doesn’t mean you have total freedom from all of life’s obligations; it merely means that you have the flexibility that comes along with not having to struggle to make ends meet at the end of the month.