Business Tip : How to become millionaire in farm business without going to farm

In recent time, Nigeria government has developed tremendous interest in agriculture, the like of which was dated back to the era before the oil boom of the 1960s. This was a result of the deliberate effort by the government to diversify the nation’s economy; a strategic plan to pave way out from the recession plaguing the country. 

The government has therefore developed a lot of policies - ranging from ban of importation of some food products, financing of some local processing companies, provision of loan to intending farmers etc. – all with the motive of addressing the nation’s economy through agriculture. 

A cassava farm

Over time, the emerging economic changes most of which are favourable to farmers have instigated a lot of people to develop interest in agriculture. However, few are those who have invested in this growing sector owing to what they see as impediments

such as:

1. Where to source for cheap and fertile farmland;

2. What to cultivate that will bring high profit;

3. Farm labourers’ challenges;

4. Stress factor associated with farming;

5. Time constraint;

6. Management issue;

7. Dislike to work on farm/bush area;

8. Distance of farms from cities;

9. Inability to combine farming with Job or businesses at hand; and

10. How/where to sell the farm produce at good price Consequently, a vast majority of the citizens – though interested in agriculture– are yet to tap from this goldmine. What now is the way out?

From experience, there are two basic solutions to address these “presumed obstacles” noting that solution 2 is the only option that guarantees total way to farm without being on the farm unless for occasional inspection of the farm at free time.

Solution 1: Part-time engagement of contract farmers 

Here, the investor engages the service of farmer(s) who will only setup the farm for him at agreed price. After this, the investor takeover the farm management himself after it has been thoroughly explained to him by the farmers.

However, he/she can’t do without occasional consultation of experienced farmers. Hence, the investor shoulders the responsibility of sourcing for farm equipments, hiring of labourers, herbicide application, harvesting and so on. As a result, he/she will need to visit the farm at intervals.

This method is more practicable for plants that require less management like cassava etc. However, in most cases, this lack continuity due to:

i) inability to cope owing to some of the “obstacles” stated above; and

ii) inability to address problems promptly owing to inexperience, external hinderances 
etc that finally lead to farm collapse. 

Cassava tubers 

Solution 2: Full-time engagement of contract farmers 

This is what we do recommend for most people as it’s more convenient and best for crops that require frequent management practice and visitation. By this, the investor partner with full-seasoned practicing farmers who will shoulder all the farming activities from land procurement (if need be), seeding to harvesting and marketing on reasonable charges. 

These farmers have no problem with any of the aforementioned challenges as farming is their lifestyle; they have passion for it and have dedicated their life to it. These farmers could be paid on salary or the profit could be shared based on agreed percentage. 

However, the latter option is better as it makes the farmers more committed towards the farm’s success. For good and cost-effective farm practices coupled with impressive output, the contracted farmers - though experienced – should be: informed and trustworthy. Gone are days when agriculture is a circular approach, when things have to be done the way our forefathers are doing it. 

Getting the right information at hand from research institutes, government agencies could go a long way to inform the farm yield. Moreso, informed farmers are liable to get things done better and cheaper. Imagine a farmer getting a farm land for #170,000 per acre! However, trustworthiness shouldn’t be overlooked. Experience and information without trust will ruin the farm 

Considering the agricultural revolution in the country and the availability of contract farmers, there is no impediment to an investor from embracing this fastest growing sector of the nation – agriculture – that has successively take Nigeria out from the state of recession plaguing Nigerians. 
Business Tip : How to become millionaire in farm business without going to farm Business Tip : How to become millionaire in farm business without going to farm Reviewed by Abodunrin Muyiwa (Muyilight) on 19:11:00 Rating: 5

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