Agriculture Investment - Harvesting the Profits From Land

Have you had the smallholding dream? I can tell you that you are not the only one.

Many "hobby farmers" or "lifestylers", - City workers and canny investors, are using their capital to chase the dream of agriculture and buying farmland, and non-farming buyers make up a much larger proportion of sales than ever before.

This has contributed to the recent escalation in the rise of farmland prices, as agricultural land continues to beat both commercial property and the residential market.

During the past six months arable land has rocketed in value by 8%, and by 13% year to date (July 2010) according the Knight Frank Farmland Index, with most experts believing prices will continue to rise for at least seven years.

The price of agricultural land rose by 19.7% for the twelve months to July, and continued interest from institutional funds looking to invest in agriculture by purchasing vast tracts of farmland and leasing it to commercial farmers is adding to the upward pressure.

Many savvy investors are now looking to swap faltering residential and commercial buy to let investments, and invest in a piece of good quality agricultural land instead. Some have been frightened off from the stock market due to the ongoing volatility and lack of visibility in the market and are now also investing in agriculture for a more stable income and positive growth.

These high-net-worth investors pursuing the farmland dream are not alone in their hunt to acquire and invest in farmland. Values are also feeling upward pressure as food prices increase at a time when there is a sharp decrease in the amount of agricultural land for sale.

Commodity prices for wheat and other cereals are at a 40 year low but peaked in 2008. According to leading finance broker Savills Private Finance, the actual acreage being advertised publicly has fallen from around 600,000 acres in the 1960s down to around 125,000 acres today.

There is still a lack of supply, although we source our assets from land owning farmers that want to become tenant farmers because mortgage payments are too high, so we get access to farmland that is not on the open market.

There are of course other options for investors looking to profit from the boom.

There are a number of agricultural investment funds to consider for those wishing to invest in farmland and still qualify for inheritance tax (IHT) relief.

Generally speaking, minimum investment levels are £20,000 with various modes of investment and offer the option to invest through a self-invested personal pension or offshore bond as well as with liquid capital.

As with any AIM stock, only investors choosing to hold the property for two years or more will qualify for the IHT relief.

In Europe, arable land is already worth twice that of land in Britain in places like Denmark and Ireland. Investors from these countries are now looking to the UK to cash in on the boom.

When compared to our closest agricultural rivals such as Ireland, UK arable land is still very cheap and has the margin to expand in value by 100%, I think personally that we are in for a period of prolonged growth, imagine if agricultural land values doubled by 2020, we would then be able to say that they are only priced as Irish farmland was ten years ago.

How is farmland treated by the Tax Man?

Land that is actively farmed could qualify for 100% relief from death duty, which means that there would be no IHT liability.

If the land is being farmed by the owner, you would qualify for 100% relief on the land after 24 months. Equally, the same rule applies if you have a tenant farmer do the work, as long as you have a profit share arrangement. If you lease the land to a commercial farmer, then you would qualify after seven years.

To trace the latest information in agricultural scenario and agriculture industry, agricultural, products, reserves, Indian importers, Trade Leads, business directories, catalogs and product reviews, www.made-from-india.com is the precise Indian Business to Business (B2B) portal. It maintains a large database of Indian Agricultural manufactures suppliers, India Agricultural products, Indian Farm Products, suppliers & producers of agricultural products including fertilizers, pesticides, animal feeds & extracts, agricultural product stocks, vegetable oil, Indian Agriculture information online news, irrigation equipment, machines & appliances, fruits & juices, edible products etc.

David Garner is Manageing Partner at DGC Business Consulting Ltd, a boutique investment consultancy specialising in agriculture investment and property investment.

Agri-culture in the Beginning

Agri­culture is probably the oldest work done by man. In the Bible, the first man born on earth-Cain, the son of Adam and Eve-was "a tiller of the soil," in other words a farmer. Through most of these thousands of years, nearly every­one had to be a farmer because a farmer could not raise much more food than was needed to feed him and his family. Even in the days of the American Revo­lution, less than two hundred years ago, eight out of every ten Americans were farmers. Today, only one American out of seventeen is a farmer. But that one American working on a farm today can raise twice as much food as eight farm­ers could in those days. But if you could have spent even a day with one of those ancient farmers, and could compare it with what you would see today on a modern farm of the United States with its bags of scien­tifically created seed, and its tractors to prepare the soil for planting, and its seeders to plant the seed at mathemati­cally proper spots, and its other machines to cultivate the soil and kill the pests that destroy crops, and reap the crop when it is grown and transport it to the barn and then to the market, you would think you were in two different worlds- and so you would be. It took man a long time to learn how to raise his food in the ground.

First, man had to learn that plants would give him food. Then he learned that the plants would grow better if the soil around them were loosened, and he would hack away at the soil with tools that he had made by chipping off pieces of stone until a piece with sharp edges for digging would remain. One season it would not rain, and the plants would die, and from this he learned that plants need water, so in dry seasons he would carry water from a nearby pond or stream and throw it on the soil. He learned that plants grow from seeds, and that freed him to move to places where plants were not already growing, because he could take the seed with him, and plant it, and make his food grow where it had not grown before. Even later than this, he learned that some plants that were dry and hard and not worth eating could be made into good food if they were made hot enough for long enough, and out of this new knowl­edge came the art of cooking. Bit by bit, slowly at first but with ever-increasing rapidity, he added to this earliest knowl­edge until agriculture became what it is today.

To trace the latest information in agricultural scenario and agro industry, agricultural, products, reserves, Indian importers, Trade Leads, business directories, catalogs and product reviews, www.made-from-india.com is the precise Indian Business to Business (B2B) portal. It maintains a large database of Indian Agricultural manufactures suppliers, India Agricultural products, Indian Farm Products, suppliers & producers of agricultural products including fertilizers, pesticides, animal feeds & extracts, agricultural product stocks, vegetable oil, Indian Agriculture information online news, irrigation equipment, machines & appliances, fruits & juices, edible products etc.

Water Power in Moorish Agriculture

al-Andalusia's Water Raising Systems
Saqiya's were Egyptian in origin and were in use since 250 BC. Saqiya's were animal-powered waterwheels. The Moors introduced them to the Iberian peninsula. Thousands of Saqiya's pumped and supplied water to the vast Valencian Orchards

Norias were self-turning waterwheels. They were a large wheel, edged with scoops, that emptied their contents into a tank or aqueduct. They functioned alongside rivers with currents.

Ship Mills operated mid-stream, in swiftly flowing rivers, rendering the heavier work. There were four in the Guadalquivir River in Cordoba; three functioned until recently.

al-Jazari
A maestro-designer of many water pumps and water clocks of the 13th century. The suction-pump design was derived from al-Jazari's work. Renaissance piston pump designs originated from many Islamic designs.

How Important were Water-Powered Mills and Wheels?
Extremely - Whole Industries Thrived from Their Crushing or Grinding Abilities.

• Textiles: wool was compacted
• Metals: gold ores were crushed
• Paper Manufacture: fibres were crushed to pulp
• Wood Mills: Timber was sawn
• Agriculture: flour was ground, rice was husked, sugar-cane was pressed

Other Industries Arose

• Sugar refineries
• Production of Gunpowder
• Textile weaving: silk, cotton, specialising in Merino wool
• Steel production lead to ship building
• Paper manufacture
• Ceramics/Porcelain: losa dorada: lusterware tableware and glazed tiles
• Tanneries: Cordovan embossed leather work
• Inlaid marquetry
• Steel and Gold Manufacture.

al-Andalus commodities

• Granada was a major silk producer and of guns and knives
• Exquisite silks and brocades were woven in Almeria and Sevilla
• (Spanish Christians and European royals were enthusiastic clients for al-Andalus merchandises)
• Cordoba specialised in tapestries and leather work
• Toledo was famous for its swords, inlaid in gold and silver Damascene decor
• Malaga was famed for the quality silks and wool
• Salibat for paper production
• Almeria for glass manufacture and brass
• The Algarve was famous for its tiles

What was Introduced?
Moorish Agriculture introduced many plants, the most significant were sugar-cane and cotton. Diet, fashion and culture were revolutionized.

The Moors brought many new vegetables: aubergines, asparagus, spinach, and artichokes. New fruits appeared: Pomegranates, limes, lemons, oranges, melons, cherries, coconuts, peaches, strawberries, figs, pistachios and coffee. New crops: rice, hard wheat, maize, sesame. New spices: saffron, ginger, mustard, cloves, nutmeg, cumin and cinnamon.

Iberian peninsular vines and olive groves were improved on. Mulberry bushes were grown: the staple diet of the silk-worm.

Crops were cultivated for three basic reasons: General Consumption, Animal Foodstuff or for Fibre.

Soil Preparation
Organic growing ruled. Crops were harvested more times in al-Andalusia than in the any other European country. Spain became a green garden. The warm climate, however, was not the the reason why.

Every event was carefully documented. Soil was repeatedly analysed and studied for many, many years. Different manures were applied to distinct soils. Al-Andalus crop rotations spanned over a period of several years - unlike European crop systems. Land quality was re-optimized with regenerating plants.

Watching the Calender
Clocks and calenders fascinated the Arabs. Land timetables existed for watering times, prayer time and optimum harvest dates were always documented. Grafting: when-and-where was a speciality, equally: rising plant-sap and its repose periods, to know when to prune. A famous treatise on botany was published: the Cordova Calender. It cleverly linked agricultural important dates to Christian Holy dates.

Continuation
The snaking irrigation channels: acequias and water storage tanks: aljibes were built - by the farmers. They knew each section and how they had constructed them. Unlike the Roman army, who built, in place of the populace. The farmers would prove vital if something needed repairing. Landownership created a pride for caring the individual plots - Europe functioned under a feudal system and slaves had no pride in work done.

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Prosperity and well being thrived. The healthy diet of al-Andalusia created a population boom. It was water and the proper use of water that created an unsurpassed level of civilization that was unknown in Europe.

Government Farm Grants - Improving Agriculture

Farming has always been a vital aspect of the American way of living. It provides food and jobs to millions of people. In the modern times of big businesses, economic difficulties, and oversea outsourcing and importing, keeping a farm running has become very hard to do. Financial struggles make a farm hard to maintain and family members who used to work on farms leave home in search of better opportunities. As a means of making things easier for farmers the government has set up a number of grants intended to help farmers get back on their feet.

Government farm grants can be used for anything farm related, whether it's purchasing new land, building a new barn, or repairing buildings that have been falling apart. The farm can be used for personal use or be a small family run business, the goal is simply to keep the country's agriculture strong. As long as the people who apply for the grants meet the grant's specified requirements, they can use the money however they see fit to keep themselves and their farm in business.

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The grants are easy to apply for whether a person chooses to apply on-line or at one of their local government offices. The applications don't cost anything and ask straight forward questions. Personal and financial information will be needed when filling out an application. Those that receive grants will be expected to use the money to efficiently run their farm and may be checked in on from time to time. The money that people receive from government farm grants will never need to be repaid, so the farmers can focus on maintaining their ranch and making the most of their gift. It's a good solution for families, organizations, and individuals who want to increase their farm's productivity.

What Does the Increasing Demand For Forestry and Agriculture Equipment Indicate?

Despite the ever increasing number of people who decide to move from the rural to have a taste of the urban life, it cannot be denied that farming is something that will not be a total threat to urbanization.

Even if more people decide to migrate from their rural areas, there are still people who won't leave their lands in exchange for the urban life. For as long as food and fresh air are still part of our basic necessities, farming and agriculture would not or should not be left in careless abandon.

Even if the world is constantly developing or progressing, it will not make any sense if food, healthy food at that, will no longer be accessible to all. Because of progress, the world may be able to afford to pay for the food they are going to eat but if the farmers gradually start to lose interest in farming or agriculture, then people might have to endure the consequences of modernization and urbanization. Our hope lies on the rest of the farmers who weren't thinking about switching to a different career. Fortunately, because of progress and modernization, technology has made way for efficient forestry and agriculture equipment such as farm tractors (John Deere, Caterpillar and other famous brands), plows, tillers, loaders and other farming related innovations to help them deliver the best of their production.

Even rich people who decide to move out of the city because they want to live in a peaceful, healthy and stress-free suburb would also know the importance of eating healthy food that they are also into farming themselves. Some of them are buying large hectares of land and devote a large area for farming and agriculture, both for consumption and commercial purposes. Soon enough, we will already solve shortage of food production if we ourselves will put an effort to produce our own food, even if our planting or farming be limited only to growing selected vegetables, crops and fruit-bearing trees in our backyard.

To trace the latest information in agricultural scenario and agro industry, agricultural, products, reserves, Indian importers, Trade Leads, business directories, catalogs and product reviews, www.made-from-india.com is the precise Indian Business to Business (B2B) portal. It maintains a large database of Indian Agricultural manufactures suppliers, India Agricultural products, Indian Farm Products, suppliers & producers of agricultural products including fertilizers, pesticides, animal feeds & extracts, agricultural product stocks, vegetable oil, Indian Agriculture information online news, irrigation equipment, machines & appliances, fruits & juices, edible products etc.

For the record, there is an increasing demand for forestry and agriculture equipment, like tractors, loaders, wagons and other farm machinery. This is hopefully an indication that we are getting better towards balancing modernization, industrialization, livelihood, farming and agriculture.

Agriculture in india

Agriculture usually plays a vital role in the economy of every nation that exists. Not only for the reason that it tends to feed the entire population of a country but also in the respect that agriculture correlates and interacts with all the related industries of that country. A country is usually considered to be a social and politically stable nation if it possesses a very stable agricultural basis.

A stable agricultural industry ensures a country of food security. Food security is considered to be one of the primary requirements of any nation. No nation can effectively grow with a stable agricultural base while harboring a nation of "hungry people", as these hungry people can do nothing what-so-ever towards helping develop their country. Food security prevents starvation which has traditionally been considered one of the largest problems being experienced by the small developing nations. Most countries depend upon agricultural products and related industries for their major source of income. Even the newly developing countries will find that they depend upon and can benefit greatly from their agricultural industry.

Aside from the crops and animals that are produced by the farmers who make up a country agricultural sector the agricultural field represents the main source of employment within most countries. The larger farms usually find it necessary to hire additional hands in which to successfully cultivate the lands and to take care of the related farm animals. Most of these large farms have processing plants located in nearby facilities for finalizing their agricultural products and developing the by-products. It goes without saying that these sub-industries employ considerable man-power within their operations. Most of the modern farms and agriculture-related industries make good use of today's modern equipment as well as the principles of science and technology.

The use of technologies in farming is determines by the competence of the various farmers towards coping with these advancements relating to the technologies. The country's farmers who can utilize the modern technologies involved with farming can assure a good production of their products which benefits their country as a whole. Modern farming technologies would be useless if the farmers are not competent enough to use any of the technology that they have available to them.

Most of the older industrialized cites have begun their growth primarily through the development of agriculture. These cities have done well on an agriculture basis before they fully begun to embrace the industrialization process. Most of the principles currently in use within our modern businesses have their roots stemming from the principles of agriculture. Bulk manufacturing is one of the practices that have been patterned from the seasoned harvesting often found in the area of agricultural practices. This method has saved many ancient cities from destruction during times of plague and drought. During the ancient times the countries harvested crops which were not merely used for immediate consumption but were often harvested and stored for future use. The same thing is practiced within the modern business procedures to ensure its stability.

Agriculture is usually common in rural areas which have the most arable lands. made -from -india is a company in which you find many people who is manufactures, suppliers & exporters for agriculture product. however with the modern technologies involved in farming agricultural activities are totally possible even in the urban areas. These activities can be accomplished to sustain personal or family needs or even for commercial purposes.

Agriculture Inventions

Agriculture as we all know is production of agri goods through the cultivation of crops and also by the massive domestication of animals. This study is called agri science. Agriculture inventions have evolved massively by the years as farming and farm machines have grown too in these years. What was done by the threshing machine for so many years has been taken over by the combine.
One of the first agriculture invention was the iron plow used a lot those days in the 1700's. Then came the wood plow in the 1800's and the iron plow was discontinued as the wood plow was easier and better to use. And then man had a brain wave and discovered the use of animals in farming and tamed horses and used them in the Reaper which was used in harvesting wheat and were drawn by horses.
The Reaper was a huge success as an agriculture invention. After this man discovered he could do more and a little more machinery will be more helpful and work can be done faster and on a larger scale. The cotton harvester came in the 1920's and it was a rage in agriculture invention. This was used in harvesting wheat on a large scale and really benefited the farmer.
Before this came the grain elevator in 1840's it was used in separating the grain from the wheat plant. Soon the cotton gin followed which was used to separate the seeds and the hulls and the other stuff not required from the cotton. This was quite a successful agriculture invention. Man also developed the corn picker.
The most revolutionary agriculture invention was the Tractor which was invented in the 1940's. This was the time when hand power was transformed into machine power. The tractor took over all manual work which used to take lot of time and energy of the farmers. This agriculture invention took farming to a different level.
To add on major agriculture inventions fertilizers were developed in early 1900's. This accelerated the growth of the crops and produced very healthy crops too. A little later pesticides were also produced which helped in killing all the harmful pests which destroyed the crops, so this invention brought in a lot of development in agri-products. Open geared gas tractors were also made during this time. Disk harrow which is a machine used to cut the grain stubble which is left behind in the field after harvesting is over was also a big agricultural invention. This saved a lot of manual labor and time too as a machine can work much faster than humans.
One of the latest developments in agriculture invention is the bio-technology and genetical revolution. Bio-technology and genetics have changed the face of agriculture and farming. New ways and technology has come up in farming with this revolution.
New technology of farming has been developed by scientists and agriculturalists and has been named as urban farming. This is a big step in agriculture invention. Scientists have developed new technique called "hydroponics", where plants are grown using mineral nutrient solutions instead of the normally used soil. Another new technique is called vertical farming where agriculturalists are growing crops in skyscrapers. This saves a lot of land problems and is a new beginning and a huge step in agriculture invention.