Managed Farmlands: A New-Age Investment Option For Passive Income

How many times has your heart wandered to the fields, with crops swaying in the wind? You must have always pictured yourself shifting there after retirement, owning a farm, and moving away from the city's rush. But now it is made possible to own a managed farmland anytime that not only allows you to enjoy the ownership benefits but also monetary returns. Managed farmland is a new asset class that has gained popularity because of the liberty the owner gets. These are farmlands that can be owned by an individual or institutions but an experienced agency will take the responsibility of management and care. This wasn't possible until recently as individual investors from a non-farming background were not permitted to own agricultural lands.

But there are a few amends made to the Karnataka Land Reforms Act, 1961, that now permits any individual or institution to invest in farmlands. The demand for food and timber will keep growing inevitably, and that makes farmland investments more attractive to new-age investors. Like any other land, managed farmlands fall under the category of tangible and immovable assets. Your land can be highly productive depending on the right management, choice of plantations, and the efficiency of resources. The ever-escalating value of land, accompanied by cyclical rotation of crop and timber, paves the way for passive income for thriving investors. The process of investing is very simple. Urban Farmers is an experienced farmland management company in Bangalore, that can take you through the steps easily. A developer helps in selecting the land and selling it to individuals. A professional farm manager will be in charge of the well-being of the land and growing the produce. Once the crops are harvested and sold in the market, the income is distributed between the owner and farm manager. Urban Farmers Bangalore works in a transparent way to notify you about the sales and expenses. You benefit from a marketplace that will never undergo a downfall.

Managed Farmland Vs Real Estate

Managed farmlands provide a great opportunity to invest in a plot without the hassle of maintaining it. The agency takes care of your land. In real estate, you enjoy the appreciation of the value of the land, but that's it. Whereas managed farmland, along with increasing value, also yields high returns from timber plantation or crop production. It is a great way for passive income while also contributing to the environment by planting trees and replenishing the ecosystem. Apart from the economic and environmental values, the farmland also works as a destination for a weekend getaway. It is a respite from the chaos of city life and you can also opt for the eco-retreats that come with cottages or camping sites to enhance the experience of vacation.

4 Major Reasons Why Now Is The Good Time To Make Investment In Managed Farmland

After the Covid, the economy has started to open, so financial analysts are looking with their stopped breath to see whether the widespread inflation may emerge as what was the fear. Meanwhile, some experts are giving assurance to the market that they have the expectation of inflation to peak at 2.4% & short-lived. There are numerous investors who are asking that how they can do the preparation of their portfolios for the worst. Among these dilemmas, you must remember that there are numerous options for bonds and traditional stocks. One alternative which you may take into consideration is Farmland. You should continue to read these 4 reasons why it is the best time to invest in Managed Farmland.

Managed Farmland is a natural fence against inflation

Several investors use farmland as a natural obstacle against inflation. There are two sources of returns for farmland investors from their investments, i.e. passive income from crop payments & periodic rental and price appreciation when the property becomes sold. When the prices of the crop are higher, it becomes the reason for higher payments to investors. It signifies that investing in farmland is a natural preventive measure against inflation. In addition to this, there is also another benefit to investors that higher prices of the crop enhance the value of underlying land. So, when you will sale your asset it will lead to more robust valuations.

Managed Farmland: A great source of passive income

As managed farmland is an excellent source of passive income, so you must seriously consider investing in farmland. As we have already discussed that a single component of farmland returns incorporates crop & rental payments from those farmers who are indulged in operating the land. This income is known as passive income as the investor is not required to put his time and effort into earning this income. There are a huge number of reasons for which the sources of passive income are considered positive. Passive income makes the investor capable of enhancing his wealth and he is not required to spend his extra time to work on this. The sources of passive income also bring diversification to your income. Along with this, these make your cash flow more elastic to shocks like an unexpected job loss. Those investments which generate passive income are also rewarding for those people who are dependent on a fixed income, for instance, retirees. The reason is that it reduces the amount of money that they have to withdraw from their investment accounts.

Farmland is not correlated with other asset classes

Investing in farmland not only facilitates investors to enhance the source of their incomes, but also adds a positive change to their entire portfolio. Farmland does not have a correlation with major asset classes, for instance, bonds, stocks, gold, and real estate. It signifies that the shocks which are responsible for influencing the performance of commonly held, publicly-traded assets don't have a similar effect on investments in farmland.

Investment in Managed farmland has become easy with Technology-enabled platforms

Another reason which you should take into consideration to add an allotment of farmland to your portfolio is technology-enabled investment platforms. These technology-enabled investment platforms make it easier than ever. The investment in managed farmland was restricted to institutional investors and ultra-high net worth individuals because of huge barriers to entry, for instance, opaque markets. However, there are some platforms that are indulged in changing this like Urban Farmers.

Urban Farmers facilitates investors with an end-to-end platform for viewing and selecting investments, reading application materials, signing legal documents & monitoring their investments on a regular basis. Now investors may recognize that they are having access to very carefully curated, and high-quality investments which has become possible just because of the team of Urban Farmers of highly experienced investment professionals.

Managed Farmland: A New Asset For New Investors

India has perceived a major growth and development in several real estate asset classes which are also categorized as an alternate asset. The reason is these assets are outside of the more traditional assets, for instance, shares, bonds, and stocks. The purpose of residential homes is to live but these may also be inclusive of passive investment benefits. On the other hand, the commercial real estate incorporates any land that basically generates income or that facilitates enterprises. During recent years, a new asset of Managed Farmlands has emerged and it has also swiftly gained attention. Those individual investors who belonged to non-farming backgrounds had a major obstacle to get entered until lately for leveraging the benefit of the growing value of managed farmland properties. The recently amended Karnataka Land Reforms Act, 1961 now facilitates non-farming institutions and individuals to own agricultural land. It has opened up the market for managed agricultural investments.

Managed Farmland As A Financial Asset

Maintained Farmlands are those the administration of which is done by individuals or institutions, but taken care of by a professional organization. Just like any other property, farmlands are of both types portable & non-portable objects. However, it is dependent on the type of plantation, management, and degree of resource production, that they might be highly efficient land parcels. The ever-enhancing value of land that is combined with timber or cyclical crop harvest facilitates a passive asset-building means. Purchasing of farmlands is becoming more alluring and beneficial. The reason is the global market for timber and grain continues to enhance. Because of enhancing population and inadequate land area farmers are required to produce more with fewer resources. The consequences of these are the areas that are well-versed with safe & abundant surface and groundwater supplies will become the properties that will be in high demand. These circumstances would enhance the valuation of farmland along with clearing the way for new investors in global farmlands.

The Real Estate Business Opportunities in India

For a very long time real estate has been the most commonwealth class in India. As real estate has been such a very attractive project, it is the second-largest employer in the country after agriculture. It has constantly attracted investors who were exploring passive benefits and fast urbanization has served the market with a massive hike. However, we also can't deny that the real estate industry of India is collapsing. Because of inadequate regulatory framework numerous real estate firms are in debt and the record of unsold real estate enterprises is also growing. As a result of this situation, individuals are looking for new methods to invest which is united by the Covid-19 pandemic.

Why are Managed Farmland Investments are a better choice than Real Estate Investments?

A managed farmland policy is that in which people are facilitated to invest in a farm plot and after that, they will see the rise in their investments without having any requirements of managing it by themselves. However, the value of land would enhance unquestionably in real estate, but it will remain just the same: land.

Produce from cyclic crop or high-value timber are examples where the maintained farmlands exceed real estate. It makes sure that those farmers who invest in agriculture will not get an advantage just from the rising value of their land, but they will also get a return on their investment from timber. While they make a valuable contribution to the environment, simultaneously they can also generate passive incomes by having a self-renewable cover. Because of this Covid-19 pandemic, people have been giving priority to wellbeing above everything. And as a result, a huge spread of greenery is what one might be looking to invest now.

What are the benefits of investing in Managed Farmland?

There are some benefits of investing in farmlands that have been interpreted according to agroforestry standards. Trees bring the improvement in the productivity of soil and biodiversity where they exist. Carbon isolation by forests will enhance the accumulation of carbon which is crucial for reducing greenhouse gas eruptions that become the reason for climate change. As there are numerous plants species and trees that support each other unanimously, so companion planting of reciprocally beneficial species of plants enhances productivity. There are abundant opportunities in wildlife for rustling and intercourse in the agroforestry landscape, which is significant for animals to adjust and flourish. Managed Farmlands facilitate a greatly required weekend getaway apart from their environmental value. The soothing environment of nature serves with a delightful reprieve from the busyness of city life. And these eco-retreats serve you with a huge variety of facilities, for instance, gazebos, cottages, and camping sites for improving the vacation experience of people. Urban Farmers in Bangalore are the one who holds specialization in facilitating you with these kinds of asset class.

Is it a good idea to invest on farmland?

At the point when you own farmland, you have a few choices for making a benefit. The most well-known is, obviously, developing and selling your own harvests. An option in contrast to this would rent the farmland, saving you a great deal of the work while as yet permitting you to receive a portion of the benefit. Try to work with a certified land specialist so you know the property's most elevated and best use, so you can make proper use of the farmland and hope to reap benefits by taking informed decisions.

Some of the well-known benefits include:

• The income generated from the farmlands are usually exempted from tax, so it is a tax-free income.
• By growing crops on farmlands and selling it, you can also have alternate source of income.
• It is an opportunity to connect with the nature and improve the overall ecosystem.
• It can be a weekend getaway for the office going people who are stuck with their work on weekdays and hope to spend their weekends in a peaceful manner.
• The value of the farmland usually appreciates and multiplied with harvesting, there is a higher “Return on Investment”.

Some of the common mistakes to be avoided while owning a farmland include:

• Disregarding clear and undisputed land titles: A clear title is a title with no kind of lien or duty from lenders or different gatherings that would suggest a conversation starter as to lawful proprietorship. For instance, aowner of a home with a clear title is the sole undisputed proprietor, and no other party can make any sort of lawful case to its possession.
• In India, Agriculture comes under the state list of the constitution i.e., states are independent to enact laws on agriculture. Ignoring the laws of the state for agriculture may prove to be the thorn for your agricultural investments and may involve legal proceedings.
• Not genuinely checking the land could prompt a bogus evaluation about the appropriateness of the land for agricultural business. In case you are searching farmlandsfor sale in Bangalore, simply confirming the records wouldn't get the job done; genuine actual confirmation of the land and its limits is additionally essential. We at Urban Farmers conducts an actual check of the land with the help of the assessor and government authorities, to give most extreme clearness in regards to the legitimate status of the land.
• For some, putting resources into agrarian land is just about encountering farm life and associating with nature. In any case, recollect that it is as yet a venture you are making into the future; An interest in sustainable farming is a way to develop your resources, community and the earth.Not defining objectives can lead you down a way of vulnerability and disillusionment when you don't get the profits you anticipated. Laying out objectives when putting resources into farmland is exceptionally subject to the kind of Return onInvestment you wish for.On the off chance that you are explicitly propelled by long haul ROI, putting resources into Agroforestry, will bear you a sweet natural product in the years to come.
Urban Farmers have given an opportunity to own managed farmlands near Bangalore by specializing in the acquisition and maintenance of agricultural lands for clients in their stead. When you purchase an agricultural land, they take care of all its aspects. They also facilitate the purchase of plots for building farmhouses so you can visit your lands whenever you see fit and enjoy the fruits of your investment. Furthermore, they provide recreational and relaxation retreats at their projects so you can utilize the time to visit your land as well as find some time to escape the hustle of city-life.

What are the rules to build a farmhouse ?

It is undeniable that when you are reading this article, you have an idea what is farmhouse all about? And what all an owner has to follow to build a farmhouse? There are many farm house sale in Bangalore, and you will get a brief idea about the farm house.
A farmhouse is a property that is mainly an agriculture setting with amidst greenery and it also gets use for residential purposes. This is also a place where people go and relax and rejuvenate themselves. It mainly has a vast land area with open green spaces that the owner can easily convert to a vacation home or a rental space.

Since Bangalore is considered a metro city, people always want to travel some greenery place in the search of peace so there are many farm house sale in Bangalore. Demand is going high and if you are planning to invest in it, it will be the best decision. There are a few rules which you need to follow before you build the farmhouse, those are below:

  1. Very fast, the land ownner needs to take permission from the local panchayat to build a house on your agricultural land in some portion. Sometimes you even need to convert that land into a residentialone by paying a certain fee. You are indirectly taking permission for your non-agricultural activities on your agricultural land.
  2. Any farmhouse can not capture more than 10% of land and, that house has to be used by farmers and not for other individuals, agencies, or activities.
  3. Whenever you comply with the law of land, every document must be genuine and transparent of land transaction. Nothing will be benami when it comes to buying.
  4. To buy any farmland, the buyer must have minimum yearly income of Rs 2 lakh and above, and this income must come from a non-agricultural source. The revenue authority has declared that this type of purchase is called “null & void” and can take the land ownership.
  5. As per section 79B, farmland holding as per the entity like religious, educational, charitable institution, trust, company, etc,this type of law always provides the remedy.
  6. Revenue authority always allows buyer to run educational institutes or set up an industry on the farmland, he has bought recently. But they have to take permission from the Deputy commissioner to get an approval for this type of exemption.
  7. If you buy farmland direct from the farmer, you do no need to wait for prior government approval. He also has the authority to keep a minimum of 50 acres of land to build the educational institutions.

Final Vedic:
Sometimes, farmers do not know where they need to go to take approval for building farm house. They mainly approache to gram panchayat offices but they do not have any rights to give permission so they escalate it to taluk panchayats. On another side, even the revenue department also does not know the rules. By reading this article, they will know where and whom to approachto do everything with hassle-free process. Nowadays in this busy lifestyle farm house has become very profitable business so many farm house sale in Bangalore.

The investment world is on a new route.

The idea of investing in a managed farmland near Bangalore has attracted individuals throughout the planet, including business owners, investors, and several celebrities. With the help of the latest tools and technology, it is currently conceivable to make farmland ultimately work. Although it has not yet gotten a lot of consideration as a standard investment source, a significant number of the world's most prominent financial investors consider it advantageous because of its attractive expenses, exceptional yields, and dependability. You will be surprised to know that financial investors like Bill Gates and many other Hollywood stars prefer investing in farmland for sale near Bangalore.

Despite showing interest in technology, Bill Gates is exceptionally connected with putting resources into farm plots on a broad reach and expanding his venture organization's arrangement with the future opportunities of rural speculation principally. Bill and Melinda Gates Agricultural Innovations, also called Gates Ag One, is connected with plant-based eating and suggests it as he sees the protein comes from the land as an issue likewise to handle the misuse of food and keep up with the manageability. He additionally helps to make upcoming agro-tech companies in India. That is why he often claims that putting money in farmland is one of the safest options to use cash helpfully.
According to Marrone, founder of Marrone Bio Innovations claims that agro-tech and food-tech areas are expected to rule the market in 2021 in terms of interest and investments.
Do you know Katy Perry and Oprah Winfrey had put resources into Apeel Sciences, a California-based organization that delivers edible coasting for food? Winfrey has a farm and lives there. This can also be an option for you if you want to own an agricultural land sale in Bangalore.
With only a few celebrity names reported, we Urban Farmers want to assure you that investing in a managed farm near Bangalore would never be a bad option. Investment in farmland has emerged as a natural and worth investing source of income that comes from the nature of the food on a more elevated level by taking care of humanity and nature.
As Urban Framers, we use tools to expect the future difficulties and benefits of investing in the agriculture Industry. We use our advanced, maintainable, and effective cultivating approach to delivering the best services to the farm owners.
Our Farmland Investment model allows investors to get the best quality products while increasing the cash flow and helping them continue owning a farm without leaving their primary job. There can be so many hurdles in the road to successful farming; when you are with Urban Framers, you can expect the company to clear all hurdles without compromising on the quality and cash flow. Working with us will always be profitable for anyone who wants to generate secondary income by owning farms near Bangalore.
There are tons of options for those who want to take this farmland business seriously. You can get in touch with us to get complete details.

What is the Return from 1 Acre Sandalwood Farms in 15 Years?

Sandalwood is also popular by the name "Chandan" and "Srigandha" in India. There are two types of Sandalwood in India, mainly White Sandalwood and Red Sandalwood. In India, White Sandalwood is mostly grown in Sandalwood Farms because of the appropriate soil and suitability of climatic conditions. However, the price of red sandalwood is also enhancing day by day. The price of Chandan trees is majorly dependent on the quality and quantity of Sandalwood Heartwood. Chandan trees are evergreen and you can grow these in any season. However, you are not recommended to grow Sandalwood plants in winters. These grow well in most types of soils that are inclusive of sandy soil. But, you should not opt for clay soil to grow Chandan trees.

When we talk about the temperature, you can grow sandalwood between 5° C to 47° C. It signifies that one can grow Sandalwood all across India and you are only required to check the type of soil and pH level of the soil. A pH level between 4.5 to 6.5 is recommended for the cultivation of red sandalwood. And for the cultivation of white sandalwood, the pH level should be more than 7 which is appropriate for it. If we talk about water, there is no need for excessive water for this plant. You are required to protect these Chandan plants from water. So, keep in mind to protect this plant from overwatering.