FACTORS FOR AGRICULTURAL INVESTMENT ASSESSMENT
Political Situation
In weighing out where and how to invest in agriculture, one must take into consideration the political situation in any given country and how specific property laws may restrict investment. Some countries may not permit direct foreign ownership of farmland whatsoever.
Strength and stability of a country’s government should also be analysed especially when considering investment in emerging markets. Factors for evaluation include political risk, economic performance, structural assessment, debt indicators, credit ratings, and access to bank finance and capital markets.
Local Human Factors
Local public sentiment toward foreign investment, as well as cultural differences and matters of language are all crucial issues that need careful consideration.
To make sure foreign investments run smoothly, local residents must see these ventures in a positive light. If there were any feeling of being taken advantage of or of intrusion on their territory, the success of any foreign investment would be fighting an uphill battle from the very beginning. The consequences of not carefully managing local sentiment could include the reduction or even the total abandonment of the investment. It is crucial, therefore, that locals fully comprehend that the combination of their region-specific understanding and expertise along with the influx of foreign funds can clearly improve their livelihood.
From construction companies to hair salons, law firms to restaurants, no matter how much ingenuity, funding, and ability provided by
owners, finding responsible and productive employees is always vital for successful business operations. Finding, communicating with, and comprehending the perspective and inclinations of workers in a foreign country is a challenge that confronted with patience and sensibility, can and must be overcome.
owners, finding responsible and productive employees is always vital for successful business operations. Finding, communicating with, and comprehending the perspective and inclinations of workers in a foreign country is a challenge that confronted with patience and sensibility, can and must be overcome.
Transport of Crops
Once crops have been successfully harvested, the quality of regional infrastructure comes directly into play. Caring for the land and its crops is a crucial part of any farm’s operations, but up to the point of reaping the harvest from any season, on a financial level, only expenses have been incurred. The potential for profit making begins when grains, fruits, vegetables, or livestock leave a farm. Therefore, quality roads will be necessary for transportation of goods. Larger farms use hefty equipment that will also need to be brought to and from the farm.
Once it is clear that the local network of roads and highways is sufficiently effective, the issue of who will be transporting the harvest comes to the foreground. Sufficient options are necessary for a farm to ensure adequate quality and correct prices at this stage of the profit making process.
The Essential Element – Water
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Around 97% of the Earth’s water is salt water from oceans and seas, and unfortunately desalinisation is a very expensive process. Close to 2% of the earth’s water is frozen in polar ice sheets and glaciers. This leaves only a miniscule amount for drinking, irrigation, and industrial use. This already small amount of freshwater is being dangerously depleted. All over the globe, water is being pumped out of the ground faster than it can be replenished. China’s Yellow River, which is siphoned off by farmers and cities, has failed to reach the sea most years during the past decade.
The green revolution in India was only possible by the installation of 20 million irrigation wells. Additionally, India must now dig wells 150 meters into the earth, compared to just 30 meters 4 decades ago.
The green revolution in India was only possible by the installation of 20 million irrigation wells. Additionally, India must now dig wells 150 meters into the earth, compared to just 30 meters 4 decades ago.
