With so many agric investment opportunities in Nigeria springing up rapidly, people are stuck and unsure whether an investment offer is right. If you are new to agric investment or investment in general, you are likely to have several fears and uncertainty surrounding your investment capital, returns, timeframe, security, reliability, and so much more. In fact, all these concerns can either turn you off or leave you procrastinating. The beauty of investing in agriculture is that it accommodates micro, medium, or macro investors and it’s also easier to access unlike treasury bills and the likes.
Consider these tips if you ever decide to invest in agricultural opportunities.
Company and Brand Reputation
Why keep your hard-earned money with an individual or entity you do not trust? Before going into agric investment opportunities in Nigeria, you must do some background check on the company you intend to invest with. Find out how long ago they came into existence, their vision, mission, activities, how they play a part in the agricultural sector. If you can’t get enough information about an agric investment company from a simple Google search, then you need to tread with caution.
The company should have an online presence. This refers to their updated and detailed website where they’ve shared their brand stories, processes, offerings, and every other information a visitor needs to know in order to embrace them. It doesn’t stop there; remember you are trying to go through every information you can get about the brand. So, check them out on social media.
On social media, you need to go through their activities and social mentions to see how the public interacts with them, the reviews or testimonials they have received from other investors, and most importantly, how they respond to comments from their audience. Discover the most common issues users are encountering with that company or any aspect of their operations. This research will give you an idea of how this company handles its investors, areas you are likely to encounter issues if you invest with them, and if they pay out investors as, and when due. Generally speaking, no one wants to invest in a brand with a bad reputation, so, do your due diligence.
Determine Your Risk Tolerance Level
Know your risk tolerance level so that you do not bite more than you can chew. All agric investment opportunities in Nigeria come with their own risk, so, it is your duty to learn about them before opting in. Putting out your money alone is a risk; not to talk of putting it out over a period of time bearing in mind that things could go right or wrong.
Once you are aware of the risk associated with an investment – you can determine if it is something you can deal with or not. Although most agric investment opportunities in Nigeria are low-risk investments, it doesn’t mean you should just grab whichever comes your way. Be sure that if losses are incurred at the end of the production cycle, you can deal with whatever terms and conditions the company has laid down for such a situation. In a bid to get higher returns, make sure you do not invest in a high-risk opportunity when you have a low-risk tolerance.
On an individual level, many Nigerians do not know the importance of insurance or are yet to take advantage of its benefits. However, on a larger scale, investment companies can’t take this aspect for granted. As a prospective investor, you must find out if the investment company partners with any trusted insurance company. This is essential because with an insurance plan, losses that occur during the production cycle can be compensated and any reduction in crop yield or sales won’t necessarily affect farmers and investors.
This is a very important point. When venturing into agric investment opportunities in Nigeria you’ll come across lots of offers that might leave you confused. Before you settle for any, find out what farm, product, or commodity your investment will be used to fund. Is it profitable? Is it high in demand? Can the stated returns be realised within the said timeframe? What does the production lifecycle of the product look like? Where is the location of the farm? These are some of the questions you should ask before grabbing any investment offer.
The investment capital is the amount of money you need to put in to fund a farm, commodity, or participate in whatever investment offer. You must be ready to set aside that amount of money for a stipulated period of time without needing to pull out your money for other reasons.
If an investment is worth, let’s say ₦50,000, and that’s all you have in your savings or emergency funds at that moment, it won’t be wise to invest it yet as you might have a need for your money soon. On the other hand, if you have enough money to cover unforeseen expenses and can still afford the investment capital, then you can go ahead.
Return on Investment
Beware of any investment opportunity that offers a ridiculously high return on investment. Agric investments aren’t ponzi schemes where some investors get very high returns while others down the line lose their funds. The return of investment should be reasonable enough based on the stated maturity period as well as the product or commodity you are investing in.
Terms and Conditions for Investment
We’ve heard some investors complain about times when companies don’t meet investors’ expectations and they turn around to point at a clause in their documentation to exonerate themselves. To prevent such situations, you should carefully read any statement, updates, and documentation the investment company puts out. In case you are considering investing with Phresh Farms, you should take a look at our terms of investment. We believe in transparency.
When thinking of investing, you must pay attention to details and all the less obvious things, in addition to the tips listed above. Don’t be rushed or pressured into taking up any agric investment opportunities and never invest in what you have no idea about. So if you are all set and ready to join us in creating sustainable systems for farmers, check out our investment opportunities and fund a farm, commodity, or the processing of food items today.