Agriculture: The most reliable way of generating good income

Technology has changed the world of income generation, yes it has. It has impact on all we do from agriculture to education, business to communication and many more. Not only does it make task easier to do, but also has acted as a catalyst to many businesses and income generating.

Agriculture is one of the oldest business known to mankind and technology has really impacted to most (if not all) of the agricultural activities of our modern days.

Let us take a look at why we (some of us) need to venture into agriculture in other to have regular income of a lifetime.

This write-up will look at the following:

1. Why is agriculture important as a business;
2. Types of agriculture;
3. Agricultural products you can start; and
4. Where can you get help to start an agricultural business.

Before looking at each of the mentioned above, let us take a look at what wikipedia said agriculture is -

Agriculture is the cultivation and breeding of animals, plants and fungi for food, fiber, biofuel, medicinal plants and other products used to sustain and enhance life.

Without wasting too much of your time, let us get started.

1. Why is agriculture important as a business

Without agriculture, almost all of us (both human and animals) will not be alive today. That is to say, we all need agricultural products to live.

Wherever you are and whatever may be generating income for you at the moment, I strongly believe that you should look into the agricultural business as a source of income generation. In fact, the European Commission in one of its document produce on agriculture title "Agriculture and Farm income" estimated that over 400 billion Euros are generated from agricultural and farm related businesses.

Why not be part of those making money from the agricultural venture?

Yes you can.

2. Types of agriculture

There are mainly two types of agriculture that are practiced, these are:

1. Subsistence agriculture; and
2. Commercial agriculture.

Subsistence agriculture: - It is that kind of agricultural practice (or farming system) which you only focus on growing enough food to feed yourself and your family. This practice is only good to sustain you by putting food on your table.

In addition, the farm used for this type of farming is small and at the same time, you do not require large capital to start it.

Commercial agriculture: - This is the kind of agriculture business we are talking about. It is that which the goods produced are mainly for commercial purposes. That is to say, you grow the agricultural products to sell in the market to make profit.

The kind of income/profit made with this type of farming system can make you rich; not only will it give you a regular source of income, but also will give you the kind of income which you can invest in other business venture.

With commercial agriculture, the farm is large and you can make use of available technology to grow your business. Such technology includes, air & soil sensor testing equipment, use of machines on farms, cooling facilities and many more.

Generally speaking, in commercial agriculture, the farms are larger and cash crops are mainly cultivated on the farm. 

3. Agricultural products you can start

Sometimes, agriculture is also referred to as farming; if that is so, then what are the fast moving agricultural/farming products to can start profiting within the shortest possible period? In short, what type of agricultural business can you start to make income from?

Below, I have listed various type of agricultural products you can sell to make profit. Some of these products are sometimes referred to as cash crops because they are produced for commercial purposes and value rather than for use by the farmer.

• Rice;
• Cotton;
• Cocoa;
• Palm Kernel;
• Cashew;
• Ginger;
• Sesame seeds;
• Yam;
• Cotton

Other types of agricultural products you can be generating income from are the aqua-cultural good, these are

• Prawn;
• Fish

4. Where can you get help to start an agricultural business

Every business need capital injection from the onset. To me, the four main source of capital you can explore to start your agricultural business are:

• Friends and Family;
• Loan;
• Investors; and
• Government funding.

As mentioned above, these are way to raise capital for most startup business. Let us look at them one after the other.

Friends and Family:

My preferred choice when it comes to raising capital for business. With friends and family helping you with cash, you know that you have less worry over your head. You will neither be subjected to credit check nor interest repayment.

All you need is to give them your word and if they have confidence in you, then they will look to borrow you whatever cas they can part with.

Loans:

Good but not my preferred choice. It is good in the sense that you have fast access to it; but taking another look at it, the interest charge on some financial institution loans are too high. This is why I stake on getting loan to start a business is 50-50.

Although, if the interest rate is friendly, you can take advantage of it to start your agricultural business; this will be to your advantage.

Investors:

If your business is viable, there are many investors that will invest in it. To get access to such money, you will need a good business plan and at the same time, must have done a good feasibility study on the business venture.

I tell you what, this is a good source of capital to start your agricultural business; not only for the money that will be injected in the business, but also because most of the investors investing in business always give you one kind of leverage or the other.

Government Funding:

Government of most countries now encourage farmer because they know the important of agriculture to the country's economy.

For example, In the United State, the US government has been encouraging farmer to plant more by providing agricultural subsidy and grants.

Similarly, most African countries governments (e.g Nigeria, Ghana, Sierra Leone e.tc) give grants and 0% loans to farmers.

Conclusion:

Like any other business, you need to have an in-depth knowledge of the business to succeed. This is my advice to you, get training and comprehensive knowledge on the know-how of the agricultural business you are looking to start. If you can do this, you are most likely to succeed in the business.

With lots of cash crops to venture into, you will be making long term income if practice in the right way. In addition, always remember that you need to acquire the right set of training before venturing into agricultural business.

Wish you good luck in you journey into the agricultural income generating business.

Sources:

• Agriculture in Nigeria;
• Agriculture and Farm income;
• Agriculture - Wikipedia.