Invest In Farming Without Owning land

Invest In Farming Without Owning land

Investing in farming can seem like a great strategic move. After all, everyone needs to eat, right? And as the population increases, the demand for food will only go up. But buying land, in reality, may not be the best option for you, even if farming is your passion. The cost of land has been increasing steadily over the past few years, making it difficult for small farmers and first-time buyers to get started.

Fortunately, there are many other means to invest in farming without owning land. One easy solution is hydroponic farming in India. Hydroponic farming is a type of agriculture where plants are grown without soil. Instead, they are grown in water that is enriched with nutrients. This method of farming has many advantages over traditional methods.

In this article, we will explore some of the options for investing in farming, as well as the benefits of investing in this type of agriculture.

1. Hydroponic farming

Hydroponic farming is a type of agriculture where plants are grown without soil, using only water and nutrients. This method of farming has many advantages, such as increased yields, reduced water usage, and little to no pests or diseases. Hydroponic farming is also ideal for urban areas where land is scarce and expensive.

There are many ways to get started in hydroponic farming without owning land. One option is to join a commercial hydroponic farming operation. These businesses have the infrastructure and expertise to get your crops off the ground quickly and efficiently. Another option is to start a hydroponic joint venture with another farmer or business. This can be a great way to share costs and resources, and it can also help you learn from the experience of others.

If you don't want to start your own hydroponic operation, you can also invest in an already existing one. This can be a great way to get started in the industry without all of the hassles of starting your own business. There are many commercial hydroponic farms that are looking for investors. These businesses usually have a solid business plan and track record, making them a safe investment.

When investing in a hydroponic farm, it is important to do your due diligence. Make sure to research the company thoroughly and ask questions about its operations.

Read More: Guide to invest in hydroponic farming

2. Farm REITs

REIT or a Real Estate Investment Trust can be a great way to invest in farmland without actually owning any land. Farm REITs are specialised type of REITs that owns and operates farmland and other agricultural properties. So, instead of buying land or a farm, you can buy shares of a farm that is leased to tenants. Each REIT will have exposure to a certain part of the farming sector.

The key advantage of investing in a farm REIT is that it offers investors the opportunity to diversify their portfolio and get exposure to the farmland asset class without having to deal with the complexities of owning and operating a farm. Farm REITs also tend to be more liquid than actual farmland, making them an ideal investment for those who are looking to get exposure to this asset class but don't want the hassle of owning land.

3. Agricultural Commodities

Investing in agricultural commodities is another way to get exposure to the farming sector without owning any land. Agricultural commodities are raw materials that are used in the production of food and other goods. Common examples of agricultural commodities include corn, wheat, soybeans, rice, and livestock.

Investing in agricultural commodities can be done through exchange-traded funds (ETFs) or commodity futures contracts. ETFs often reduce the risk of investing in highly volatile commodity markets and give you more exposure. Commodity futures contracts are agreements to buy or sell a certain amount of an agricultural commodity at a future date and price. These contracts can be used to hedge against rising prices or speculate on the direction of the market.

4. Crowdfunding

Farmers have always had trouble raising capital. The high cost of land and expensive equipment can make it difficult for small farmers to get started. Crowdfunding, on the other hand, gives farmers the opportunity to raise money from a pool of smaller investors. As a result, investors can add farming to their portfolios without buying land.

5. Agricultural ETFs

Agricultural ETFs (Exchange Traded Funds) invest in a basket of agricultural commodities or companies involved in the production of food and other goods. As with any other ETF, you get the benefits of diversification and liquidity. The key advantage of investing in an agricultural ETF is that you don't have to pick and choose which companies or commodities to invest in. The fund manager does the work for you. Agricultural ETFs can be a great way to get exposure to the farming sector without having to deal with the complexities of owning land.

6. Agricultural Mutual Funds

Agricultural mutual funds invest in a basket of companies involved in the production of food and other goods. As with any other mutual fund, you get the benefits of diversification and professional management. However, an important aspect to remember is that many of these funds also have exposure to other sectors along with agriculture.

Investors also need to consider factors like fees and past performances before investing in any mutual fund. While agricultural mutual funds don't offer the same level of exposure as an agricultural ETF, they can still be a great way to get some exposure to the farming sector without having to own land.

How Brio Hydroponics can help?

Brio Hydroponics can help you get started in commercial hydroponic farming with our turnkey solution. We provide everything you need to set up hydroponic farming in India. With a key focus on commercially profitable farming methods to boost sustainable ways of living, we are not just a hydroponic farming solution but also an agriculture business opportunity for those seeking to enter this rapidly growing industry.

If you're looking for ways to get involved in commercial hydroponic farming, join our Hydroponic Joint Venture program for commercial hydroponic farming, which gives you the opportunity to participate in a high-growth industry with little to no risk.

Conclusion

Investing in land involves lots of complexities, like availability of land, its location, good water source, electricity, and other basic amenities. All these make buying a piece of land quite expensive.

While investing in farming without owning land can be done through farm REITs, agricultural ETFs, mutual funds, and crowdfunding but these instruments are a little riskier due to dependency on stock markets. on the other hand, hydroponic farming is a completely risk-free option. It offers a number of advantages, such as higher yields, year-round production, and less water usage. Hydroponics farming requires less land, making it a more efficient use of space. It is also easier to control the environment, which leads to fewer pests and diseases. As a result, hydroponic farming is less labor-intensive and can be done on a smaller scale.

Want to know more about how to start a hydroponics business? Contact us today to learn more about our hydroponic joint venture program.