After setting
the criteria that make the land suitable, you have to start looking for it. The
risk, after searching for a long time, is to embark on a plot that does not
suit you in the end.
Whenever you
are thinking of acquiring a farmland, these are some of the things you should
consider:
1. Location
How far are
you from the market? Considering which farm to buy should be determined by the
location in terms of distance to the market that you have identified.
2. Accessibility
How accessible
or suitable is the road to the farm? This affects distribution channels if at
all your farm is not accessible due to bad or undeveloped roads. Consider how
long it takes you to reach your destination through remote and rural areas.
3. Infrastructure development
What
developments does the farm have? Before deciding to buy or lease a farm, please
consider development factors; is it fenced? Does it have water rights? Does it
have network reception or internet connectivity? Does it have proper housing,
water & sanitation? If not, is it really worth paying for? Be true and
honest to yourself when answering these questions.
4. Size of the farm
Do you really
need 16 hectares or a 4 hectare will do? Don't pressurize yourself to buy a
large farm if your project only needs 2 hectares. Buy enough land to suit your
idea and expansion plans. If you buy land that's big enough to fit your
Agribusiness project, avoid paying for larger land that you won't need now
& in future (plan ahead).
5. Competitors
Who is farming
what in your area? Be sure that before getting into purchasing your land to
grow tomatoes
or raise
cattle, you should know very well who your competitors are in
the area & industry of choice. Avoid getting a farm in area where the
market is saturated and hard to penetrate. But rather use this as an
opportunity to learn from neighbouring farmers, benchmark from them and come up
with a strategy to be different and earn a market share in the industry...Remember,
this is business after all it's strictly financial.
Note: Use the above tips to avoid being tricked into buying land
that is not in line with your farming vision.
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