Vinayak Realtech

Don’t put all your eggs in one basket. We all have heard this idiom. However, have you ever thought deeply about Agriculture Land? The line covers all types of investments and can be considered a warning. Investing all your savings in one place can be risky and applies to real estate, too.

Typically, real estate investment covers two types of properties- residential and commercial. People with substantial capital consider commercial properties due to their steady future. If you also have a significant amount of capital and are thinking of investment, consider agricultural land as an investment.

Are you surprised with this idea? Read this blog diligently to know the deepest insights about this idea.

Let’s start!

Agriculture Land: Benefits of Investing in Agricultural Land

Agriculture Land is a tangible and stable asset. It offers the potential for high returns throughout the year irrespective of market changes. This makes it a wise choice for both seasoned investors and newcomers. As a veteran real estate company we are also focusing on this. Here is a glimpse of its benefits-

Increasing Valuation of Agriculture Land

The price of agricultural land is rising continuously and this trend is not limited to country or state. For example, Ramavarapadu is a village adjacent to Vijayawada. The acre price took a jump from Rs 7 lakh to Rs 7 crore within ten years. Similarly, in Mardi, 15 km off Solapur, Maharashtra, the price of an acre surged from Rs 20,000-25,000 to Rs 10 lakh.

The scenario is the same for the state also. In Garia, the average land price has hiked from Rs 19.7 lakh to 24.5 lakhs in the span of 2019 to 2024. Meanwhile, in Howrah, the price increased from 13.3 lakhs to 16.4 lakhs. According to experts, the price will increase more in the upcoming days.

Business Possibilities of Agriculture Land

There is an age-old saying that if you want to be rich, you have to start a business. Now, many people get confused about what business to do, and whether it will have a brighter future. If you are thinking the same, please note, that agricultural land is one of the best business ways you can ever think of.

According to National Geographic Magazine, the increasing global population will require roughly double the crops we grow by 2050. Adding more trouble to it, only seven per cent of the planet’s land is suited to food production.

Thus, farming is one of the best business ideas you can ever have. The steady market and growing demand will help you to get the best possible returns.

Also, there is a huge demand for organic crops. In 2023, the organic food industry in India was valued at about INR 131.41 billion. It is expected to grow to INR 625.69 billion by 2028, with a compound annual growth rate (CAGR) of about 37.01%. Therefore, you can consider this, too.

Weapon against Inflation

Inflation is a real enemy of your savings. According to market data, food prices increased by 10.9%, leading to a 14-month high in retail inflation of 6.2%. This was driven by sharp increases in the prices of vegetables, fruits, oils, and fats. Due to this, the living cost is increasing significantly.

However, you can deal with it easily if you own agricultural land. With a land, you can produce and consume.

Additionally, you can start a passive income by leasing the land. According to data, there is 14.5% the percentage of tenancy in agricultural land in West Bengal. Therefore, you can farm and put on rental at the same time and can earn a bomb.

Tax Exemptions

It is already established that you can earn significantly from farming. However, now you might think that even if you earn handsome, it will go through taxes. Well, no, there is a significant tax exemption for agricultural lands.

According to the current tax regime, gains from rural agricultural land are not taxable since the Income-tax Act does not classify it as a capital asset. Revenue from agricultural land is required to be reported in Schedule EI of the ITR and is exempt under Section 10(1).

On the other hand, the West Bengal state government also has some significant exemptions on ‘Khajna’ and ‘Cess’ for agricultural plots. To know in detail, visit the Banglarbhumi.gov.in. It is the state government portal dedicated to land taxation.

Leverage Agrotourism

Do you know what is the biggest trend in tourism? It is the agrotourism. Citizens love to visit agricultural lands and witness the whole farming process. It is helping them to stay in touch with nature. You can earn significantly from this.

Here, esports suggests keeping a specific area where the visitors can pick the raw vegetables and buy them (for themselves). It is already a trend in the Western world and helping the farmers to earn more.

Additionally, to maximize the income, you can start providing educational classes regarding farming. Again, it is also common in the Western world and shows a wonderful result.

Diversification of Investment Portfolio

According to investment experts, one of the best ways of investment is the diversification of portfolios. It helps to mitigate the market risks and ensure at least one way of income irrespective of market changes. 

You can keep earning from farming, renting, and tourism. Also, you can live your livelihood based on your own farm foods.

It adds a sense of security, too.

Promotes Sustainability

We all have social responsibilities to deliver and sustainability is one of them. Farming helps to reduce pollution and reducing carbon footprints. As a responsible citizen, you can do water conservation and organic production at this place.

Additionally, it helps to live a better life. Do you know how? Data shows, that in 2020, India used about 61,000 tons of pesticides in agriculture. These pesticides are not good for health at all. However, when you farm by yourself, it helps you to avoid toxic pesticides (you can use natural pesticides that have zero to minimal side effects).

Wrapping Up

Investing in agricultural land is one of the best things you can ever do. It helps to stay protected against inflation and mitigate investment risks. It ensures, that even if you make a huge loss in the share market, you will still have an income source.

However, take note that the prices of agricultural land are significantly increasing in India and West Bengal. Thus, if you want to diversify your portfolio with agricultural land, do it now!

If you don’t have much budget, you can always invest in residential properties. To get top residential properties in the heart of Kolkata, connect with us.