Managed Farmlands

Managed farmlands are agricultural lands owned by individuals or organizations but cared for and professionally managed by a dedicated firm. With proper management, suitable plantation, and soil quality, these parcels can become highly productive. Farm asset management agencies, like Growpital, pool funds from investors to cultivate and sell farm produce, providing tax-free fixed returns on a regular basis as interest. This investment avenue allows investors to benefit from farmland ownership without the need to work as farmers themselves.

Since farmlands and other real estate asset classes are not a part of the mainstream assets like mutual funds, stocks, bonds, F&O, etc., they are categorized as alternative assets. In the last few years, they have quickly become popular as a new asset class among new-age investors. As the demand for food and other agricultural products around the world continues to grow, agri projects will become more attractive and beneficial in the future. Professionally managed agri projects, regions with secure and adequate surface, and groundwater resources will become increasingly valuable assets and drive up the value of farmland, creating opportunities for new age investors. Farmland is an ideal option to diversify your portfolio to an asset offering greater returns over time.

Investors can enjoy many benefits by investing in managed farmland. Tax-free Income Return on investment in agri projects is free from tax in India. Indian citizens are not subject to tax on their agri income, including profit made from selling produce grown in these farmlands u/s Section 10(1) of the Income Tax Act of 1961. This is to empower farmers and protect them from any unfortunate events due to inflation. Higher ROI Farmlands offer much higher tax-exempt returns on investment (11% – 17% p.a.) than traditional assets like fixed deposits and several bonds. Thus the investment enables investors to earn passive income. Low Risk Investors’ money is used across all the agri projects throughout India instead of a single managed farmland. Hence, natural disasters like drought, flood, etc. in a single area don’t affect return on investments. Portfolio diversification Farmland is a new non-market-linked asset class. Hence, it offers a great opportunity for investors to diversify their portfolio by investing in a physical asset that is completely different from more mainstream assets such as mutual funds, ETFs, stocks and bonds. It offers competitive returns with a pretty low level of volatility. Thus, investment helps investors diversify their holdings and balance out their riskier market-linked investments.

Retail investors can earn attractive returns by investing in farmland operated by a management firm. While the investment process may vary from one agency to another, here are basic steps you need to follow. Step 1: Create account and complete KYC: Mail to info@venvedhgroup.com and your account will be created online and you will get back details via mail. You can then select investment options based on details you receive from Venvedh team of professionals. Step 2: Choose investment option: Select a plan as per your investment goals and pick up the number of units you want to buy. Step 3: Start investing: Add money and e-sign required documents. Step 4: Get your earnings: The assured return i.e. interest amount will be credited to your bank account on predetermined dates.

Retail investors, including Indian citizens (RI), Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) can invest in managed farmland in India through a farmland asset management company. As far as purchasing or owning agricultural land is concerned, agriculture in India is a subject of the state; there are different laws in different states. India is ranked 2nd in terms of volumes of production with a 54.6% workforce engaged in agriculture and a whopping 90 Million plus farmers across the country.