Kindly Advise on buying Agriculture Land

[thaya80]

Dear All,

I need your opinions on buying agriculture land.

Background: I am an NRI IT guy, working in UAE for 10 yrs, planning to settle down at my native after 5-7 yrs. my passion, ambition, etc, etc... everything is buying agriculture land and doing farming. No second thought on this. I was looking for around 10 Acres @ 5-6 Lakhs/acre near my native place thanjavur, tamil nadu for last 3 yrs. recently, I found about 13 acres of land near river bed @ 6L/acre which has very good road access, bore well and free EB connection. No idea about soil. I will share the details soon. I would spend around 80L on this land. many of my relatives and friends advise me not to invest on agriculture land. I simply ignore them thinking that agriculture will be the future. I know and understand that agriculture is not simple, but hard work and innovative thinking could yield good returns. there are many people in this site are example for this. I don't expect 1L/acre/year. I should get at least a decent income. I am planning to grow some trees on the land for next 5-7 yrs which will require minimum maintenance and manage from out side, once I return to India i will do the full time farming. I request you experts to share your opinions and advise on this whether my decision is right or wrong.

Regards,
Thaya

 

[raghu6961]

Dear Thaya,

i recently brought 10 acres of land near Hubli,Karnataka.basically Mechanical engineer working in Spain.

look,if you can supervise yourself,then take this challange.not depending on your brother,sister etc.no one will do it.

now you could answer that,my father in law will take care.bullshit! may be 1 in 1000.dont belive it.

2ndly,for 1 cr investment,you loose 10 lacks per month as an interest.therefore,you have to earn 1 lakh per acre by first year or two.Banana,watermelon ,ginger, etc can give you this return.but be sure that you do it yourself.

finally,
agriculture is low return low risk type.therefore,you have stress free life.but of you want to earn 15% and above PA,forget about it.its not possible.you might have to use chemical fertilizers and pesticides.
but within 5 years,your land is useless.

last but not the least!

go back to india,buy a suitable land and start it.never invest when you are abroad.you loose interest every year and nothing happenes at your site.in rural area,there are no such appreciation for the land.you will get it anyway.there are several people want to get out of villages.you have plenty of land for low price.

Good luck

 

[thaya80]

Dear Raghu,
Thank you for your input. You are 100% correct. I accept and understand that our presence is very important in farming activity.

Dear All,

I have one more option. there is one more land available in the river bed area(around 4 Acres, 3.5L/Acre). but no irrigation option. here also I plan to grow trees only for the next 5-7 yrs. I can get water from other land owners on a hourly basis. I hope that will be more than enough for the trees. I can register for the free EB and hope to get it after 7 Yrs(so optimistic). I can spend some amount to develop the land like fencing, leveling, bore wells, solar pumps(if I don't get free EB), etc. I believe in the 7 yrs I can acquire slowly adjacent lands also. please kindly advise on this.

Regards,
Thaya

 

[raghu6961]

I understand. Again, you want to do it when you are abroad? Not a good idea!
When you acquire a agricultural land in India, be careful. Law prevents from buying agricultural land if you are agriculturist by birth.(your father or grandfather must have agricultural land or you must have a agricultural land in your name already).
Solar requires maintenance. i believe, it requires a battery to accumulate energy produced. Therefore you must have a person to take care of it.
What kind of trees you want to grow? Irrigation for the same can be done by Drip. any way, you are taking water from someone.
Good idea is to buy a Plastic tank of 10000 hits and raise it to 25 to 30 feet by means of solid pillars or metal fabrication.fill the tank by hourly basis and put a drip irrigation to all trees.let him fill the tank and open the valve when it is filled.let it be empty after irrigation.
You can control
1 good irrigation to plants
2 you know that,you are taking 10000 lts of water everyday or every alternative day.if you know the discharge rate of pump,you can calculate how much time required to fill it.very easy payments
3 not very expensive.drip will cost you around 30 to 40 thound/acre low quality and very good quality will be 1 lakh max
4 tank will cost you around 30 to 40 thousand and pillars could cost you around 1 lakh.
5 Total investment will be around 4 to 5 lakhs (1 lakh per acre) and you are tention free.
Regards
Raghu

 

[thaya80]

Thank you Raghu again. yes, I know the restrictions in buying agriculture land in india. NRI's are not allowed to buy agriculture land in any state in India. only farmers can buy agriculture land in some states of india(Karnataka, MH, etc). But in tamilnadu any one can buy agriculture land(of course NRI can not). I will register the land on my father's name as NRI can inherit agriculture property.

Regards,
Thaya