HOW TO START A FARM ESTATE IN NIGERIA (A REAL ESTATE ALTERNATIVE)

A Wheat Farm Estate

A Wheat Farm Estate

What is a Farm Estate Business?

A farm estate is a piece of land used for planting crops, breeding animals, fishing and/or planting trees to provide passive income to the businessman/agropreneur and his/her investors.

Simply, a farm estate is a real estate that is based on farming land on a small/medium/large scale.

Farming is a lucrative business in Nigeria, you can make even over 20 Thousand Naira monthly if you start and continue your farming business the right way be it as businessman/agropreneur or an investor: That’s what we are looking at in starting a farm estate , another way of making money through your real estate.

Many people usually think that you need to be a farmer before you can start a farm business, but let us look at the 1950s-1980s, many professionals such as teachers,doctors and lawyers had farms they retired to after work and during free time, no wonder, food flowed aplenty across the whole Nigeria.

You don’t need to be a farmer to own a farm. Be a farmer and reform your farming…..

Just like real estate farm estate can be a source of passive income (money magnet) in your business portfolio.

How?

2 Types of Farmers (Business-wise) in a Farm Estate Business

  • Businessman/Agropreneuer: Owns the business and provides the administration towards profit-making.
  • Investors: Provides capital for the farm estate owner/agropreneur and according to solid agreements receives interests on regular basis from the profit made and according to the capital he/she invested.

4 Types of Farm Estate Business Sectors

  1. Poultry farm estate : Rearing or breeding turkeys, chicken/cockerels, ducks and their produce etc.
  2. Crop farm estate: Yam, maize, vegetables etc.
  3. Fish pond estate: Tilapia, Catfish etc.
  4. Trees/plantation estate : cashew, coconut, oil palm, timber etc.

7 Assets For A Farm Estate Business

  1. Land: Have/Buy at least a plot to start with. This can cost you about 100 Thousand -1 Million Naira per plot in the rural areas.
  2. Visionary Business Plan: How do you intend your business to be (mission statement, vision and tools). You can contact me for online services services to start your farm estate.
  3. Starting Capital and bank account: A capital of 10 Thousand Naira for investor and 100 Thousand Naira for Businessman (Agropreneur).
  4. Incorporation documents: Corporate Affairs Commission (CAC) incorporation document etc.
  5. Farm house/Farm office: You need a physical presence as a businessman (agropreneur)
  6. Website/Blog: For online presence and digital marketing.
  7. Farm inventory: seedlings/feedings/troughs
  8. 3 popular social media in Nigeria for digital marketing of the farm estate business.

4 Ways to Make Money From Your Farm Estate Business

  1. Sales of farm produce: You can offer your farm estate produce to markets like Dugbe, Sasha, Kano, Sokoto, Mile 12, Onitsha etc and make substantial profits.
  2. Export of farm produce: You can export your farm estate produce such as milk,wara (local cheese),cashew,cocoa, yam even with Government support to foreign countries and make substansial profits.
  3. Land Lease: You can lease land from your farm estate to other farmers/agropreneurs and collect charges according to your jointly stated agreement.
  4. Land sale: You can sell plots or acres of land from your farm estate to companies especially agro allied companies such as hotels, restaurants etc.

5 Differences Between A Farm Estate And A Real Estate

  1. A farm estate can still start on a low capital base unlike a real estate which requires a huge capital.
  2. A farm estate has the potential for a higher consume base, though lower profit margin than a real estate as everybody needs food, the no.1 basic need of man, shelter (real estate) is no.3.
  3. A farm estate can still buy and sell lands in addition to farming unlike housing estate that allows for housing alone.
  4. A farm estate can be supported by the Government via agricultural funding, credit schemes and raw materials provision. I don’t know if a real estate can receive Government support as at now.
  5. A farm estate can source for a larger market, you can begin exporting your farming estate by buying land outside the country (just like a real estate) in addition to exporting your farm produce abroad.

Best Locations for Your Farm Estate Business in Nigeria

To get the best locations, I will advise you to buy land in the rural areas as land is much cheaper, the environment is less busy and you can provide employment to more people.

That doesn’t mean you should go to the bush though.

  • Ogun State:Shagamu, Ofada,Atan
  • Lagos: Isheri Town
  • Bauchi State:Bauchi (Lots of land available)
  • Taraba State: Lots of land available
  • Cross River: Ikot Ansa,

Find more land locations that you can use for farm estate business in Nigeria.

Farm Estate: 4 Types of Departments/Contractors

  1. Transportation: You need some vehicles to transport your farm produce from the farm estate to the various markets.
  2. Marketing: You need people to help you promote and brand your business both physically and on the internet.
  3. Insurance: You need to guard your farm estate against risk of agricultural related problems e.g lack of harvest especially when you are operating on a large-scale.
  4. Accounting: You need to take proper financial records of your input and output to be able to know if your business is adding money to your pocket.

Start your farm estate, is your real estate vacant, you might well try a farm estate business; as I earlier wrote, economists defined the three needs of man as food, shelter and clothing, provide for a need today by starting your farm estate.

Article by VisionaryDemola
I am a politics blogger, a policy analyst and a political commentator.
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