Managed Farmlands New Asset Class For Investors
In the last few years a new asset class of managed farmlands has emerged and has quickly gained popularity. Until recently there was a high barrier to entry for individual investors (from a non-farming background) to take advantage of the appreciating value of managed farmland assets. The recently amended Karnataka Land Reforms Act, 1961 now permits any individual or institution from non-farming background to own agricultural land. This has opened up the market for investments in managed farmlands. Managed farmlands are nothing but farmlands that are owned by individuals or institutions but cared for by an experienced agency. Managed farmlands like any other land are tangible and immovable assets. However, they can be highly productive land parcels depending on the type of management, plantation and level of resource efficiency. The ever appreciating value of land coupled with cyclical crop or timber harvest provides a passive wealth creation opportunity for new-age investors. A managed farmland is a system where individuals can put their money in a farm plot and then watch their assets grow without the hassles of having to manage it themselves. In real estate, while the value of the land will surely appreciate, it remains just that: land. Where managed farmlands overcome real estate is with high-value timber plantations or cyclic crop produce. This means that a person investing in farmland not only benefits from the ever-appreciating value of their land, but also from the return on investment provided by the timber. This creates a passive income that also generously contributes to the environment by providing a green cover that keeps replenishing itself. The pandemic has made people prioritize health over anything else, and a vast expanse of greenery might be exactly what one might look to invest in the present times. There are several benefits to owning a managed farmland based on the principles of agroforestry. Trees increase the biodiversity and soil fertility of the region they are planted in. Forests can increase carbon storage through carbon sequestration, which is essential in order to reduce greenhouse gas emissions that enable climate change. Companion planting of mutually beneficial plant species leads to a rise in productivity as different species of plants and trees support each other symbiotically. The agroforestry landscape also provides plenty of scope to wildlife for foraging and breeding, which is vital for animals to adapt and survive. Besides the environmental significance, managed farmlands also function as a much needed weekend getaway. The relaxed atmosphere in the bliss of nature provides a departure from the hustle and bustle of the city, and these eco-retreats come with a host of common amenities like cottages, gazebos, and camping sites that could enrich one’s holiday experience. If you are wondering where to look for managed farmlands, Hosachiguru, Holiday Valley, and Jain Farms are the one-stop destinations in Bangalore that cater to this promising asset class.
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