Question Initial expenses in newly acquired farm land?

A

abhiagri2

Member
Hi All,

I am in the process of identifying and procuring an agriculture land and currently working out my budget and subsequent expenses that I need to incur. Based on my reading from the wealth of knowledge in this forum, I have identified the following as my potentially larger expenses after buying my land.

Could someone help with approx cost (rough estimates are fine) for the same with other particular assumptions listed below.
This will greatly help me or others like me to understand what will be total budget required excluding land and registration cost.

1. Security fencing (assuming land area of 1 acre)
a. option: Barbwire with stone pillars
b. option: Chain link with metal pillars
c. option: Solar fencing
d. option: Live/natural fencing (cost of saplings plus labour for digging/planting, not sure what plants are suitable though)

2. Power connection to land (for running bore/pumpset)

3. Borewell (assuming groundwater depth of 300 feet)

4. Drip irrigation setup (assuming cultivation area of 1 acre)

Thanks so much in advance :)
 

Dear Sri Abhiagri,

You are seeking information after purchasing land etc, which is actually coming under land development activity. After purchase of vacant land or barren land or land without necessary infrastructure land development activities can taken up for taking up cultivation of crops.

1. Land leveling and bund formation.
2. Filling with soil in case of uneven land
3. Reclamation of land if the soil is problematic such as salinity and alkalinity.
4. Digging of bore well/open well
5. Overhead tank and laying of pipelines ( If water source is in long distance)
6.Power connection and purchase of pumpset/tractor (more than 5 acres)
6.Drip irrigation system
7. Fencing - Live fencing /Barbed wire/Solar
8.Farm house/worker quarter etc

For all the above activities (as a whole) you can take a land development loan from Financial Institutions (Banks/Cooperative Banks) as term loan repayable in 7 - 9 years provided you are able to generate income sufficient to repay the loan installments and to mee your maintenance expenses

Generally for one acre it may not be economical to invest huge amount. In one acre Protective Agricultural activities such as poly houe or shade net can be set up and high value crops can be raised to get sufficient income .

For further guidance and for project report for availing loan, please contact us .

G.Anandarao B.Sc(Ag)
 
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garao56 said:
Dear Sri Abhiagri,

You are seeking information after purchasing land etc, which is actually coming under land development activity. After purchase of vacant land or barren land or land without necessary infrastructure land development activities can taken up for taking up cultivation of crops.

1. Land leveling and bund formation.
2. Filling with soil in case of uneven land
3. Reclamation of land if the soil is problematic such as salinity and alkalinity.
4. Digging of bore well/open well
5. Overhead tank and laying of pipelines ( If water source is in long distance)
6.Power connection and purchase of pumpset/tractor (more than 5 acres)
6.Drip irrigation system
7. Fencing - Live fencing /Barbed wire/Solar
8.Farm house/worker quarter etc

For all the above activities (as a whole) you can take a land development loan from Financial Institutions (Banks/Cooperative Banks) as term loan repayable in 7 - 9 years provided you are able to generate income sufficient to repay the loan installments and to mee your maintenance expenses

Generally for one acre it may not be economical to invest huge amount. In one acre Protective Agricultural activities such as poly houe or shade net can be set up and high value crops can be raised to get sufficient income .

For further guidance and for project report for availing loan, please contact us .

G.Anandarao B.Sc(Ag)
Click to expand...
Dear Anandarao,

Thanks for the elaborate input you provided.
I always enjoy your responses for they are so packed with information and clearly shows your knowledge and passion for the subject.

Could you please also provide details on the approx cost for the specific activities I listed in my query?
I am not planning for a loan as such but want to see if I need to tweak my budget to accomodate the said expenses.
Thanks again.

Regards,
Abhi
 

Please inform the extent of land your owning or proposed to be acquired , then we will be able to suggest expenditure required for various developemental activities on the farm.

G.Anandarao B.Sc(Ag)
 
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garao56 said:
Please inform the extent of land your owning or proposed to be acquired , then we will be able to suggest expenditure required for various developemental activities on the farm.

G.Anandarao B.Sc(Ag)
Click to expand...
Dear Sir,
Thank you, sure. As already mentioned in my first post, the expected estimates are for a 1 acre land.
For dimensions we can consider a square land, 208x208 sqft.
 

One acre is 4000 sq meters or 43560 sq feet. Whatever developmental activities we have proposed earlier are not economical for one acre as the income generation is not sufficient to pay back / recoup the investment.

Better to go for establishment of polyhouses of 1000 sq mts each and start cultivation of capsicum, cucumber or flowers which which will be fetching higher income levels .

State horticulture departments are extending 50% subsidy for establishment of polyhouses or shade nets please approach them.


G.Anandarao B.Sc(Ag)
 
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garao56 said:
One acre is 4000 sq meters or 43560 sq feet. Whatever developmental activities we have proposed earlier are not economical for one acre as the income generation is not sufficient to pay back / recoup the investment.

Better to go for establishment of polyhouses of 1000 sq mts each and start cultivation of capsicum, cucumber or flowers which which will be fetching higher income levels .

State horticulture departments are extending 50% subsidy for establishment of polyhouses or shade nets please approach them.


G.Anandarao B.Sc(Ag)
Click to expand...
Dear Sir,

Thanks for you reply, but my original question is still not answered. Not sure if I wasn't clear about it till now.

At this point, I am not really looking for land development advice and/or return in investment possibilities.

I am only seeking approx cost details for the activities that I have listed in my original post. Can you please respond specifically to this?
 

The approximate costs for the following items may be taken note of :

Security fencing (assuming land area of 1 acre

a. option: Barbwire with stone pillars Rs. 40000 - 50000

b. option: Chain link with metal pillars Rs.50000 - 60000

c. option: Solar fencing Rs.30000 - 40000

d. option: Live/natural fencing (cost of saplings plus labour for digging/planting, not sure what plants are suitable though)

2. Power connection to land (for running bore/pumpset) Rs.30000/-

3. Borewell (assuming groundwater depth of 300 feet) Rs.80000 - 100000/-

4. Drip irrigation setup (assuming cultivation area of 1 acre) Rs.25000 - 35000

G.Anandarao
 

garao56 said:
The approximate costs for the following items may be taken note of :

Security fencing (assuming land area of 1 acre

a. option: Barbwire with stone pillars Rs. 40000 - 50000

b. option: Chain link with metal pillars Rs.50000 - 60000

c. option: Solar fencing Rs.30000 - 40000

d. option: Live/natural fencing (cost of saplings plus labour for digging/planting, not sure what plants are suitable though)

2. Power connection to land (for running bore/pumpset) Rs.30000/-

3. Borewell (assuming groundwater depth of 300 feet) Rs.80000 - 100000/-

4. Drip irrigation setup (assuming cultivation area of 1 acre) Rs.25000 - 35000

G.Anandarao
Click to expand...
Dear Sir,

Thank you so much for your response, cant tell you how helpful this has been in determining my budget constraints :) :) :)
The above numbers imply I might be required to keep aside 2-3 Lacs in addition to the land purchase, registration and other transfer charges.

Looking forward to engage you professionally when I am through with the land purchase part sir.
Thanks again.

Regards,
Abhi.
 

abhiagri2 said:
Dear Sir,

Thank you so much for your response, cant tell you how helpful this has been in determining my budget constraints :) :) :)
The above numbers imply I might be required to keep aside 2-3 Lacs in addition to the land purchase, registration and other transfer charges.

Looking forward to engage you professionally when I am through with the land purchase part sir.
Thanks again.

Regards,
Abhi.
Click to expand...
One other thing sir, I am assuming all the costs you mentioned are without subsidy. Is that correct?
 

At present there is no subsidy for land development activity alone. If you are going to take up any horticultural crops like fruit crops you are eligible for 40% subsidy (including drip system) if more than 5.00 acres of land is under cultivation, the National Horticulture Board will be giving subsidy. If it is less than 2.50 acre you are advised to approach the local Horticulture department for getting subsidy.

G.Anandarao
 

garao56 said:
At present there is no subsidy for land development activity alone. If you are going to take up any horticultural crops like fruit crops you are eligible for 40% subsidy (including drip system) if more than 5.00 acres of land is under cultivation, the National Horticulture Board will be giving subsidy. If it is less than 2.50 acre you are advised to approach the local Horticulture department for getting subsidy.

G.Anandarao
Click to expand...
Thank you again for the clarity sir, this is good information to know.
 

If at you are going to avail any finance from financial institutions please approach us for project report

G.Anandarao B.Sc(Ag)
 
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