7 BEST WAYS TO MAKE MONEY IN AGRICULTURE IN NIGERIA

Muhammed Alhassan

If you are looking for fast ways to make money in agriculture the below ways are for you.

Introduction

There are currently numerous methods to make money from agriculture without owning a farm or even being physically present on one thanks to the ongoing development of the planet. Online farming is another option that you have, and you can use it from the comfort of your own home. All you have to do is invest your money in Farmers who are prepared to work for it, and at the end of the growing season, you receive your profits. Yes, there is never a bad time to practice agriculture.

To make money, you don’t necessary need to own a farm or go to one; you can invest in the agricultural industry and its products instead.

There are a lot of reasons why you can invest in agriculture, one of which is the increase in the value of the business and it is a low-risk investment, high profits and flexible work.

There are numerous ways to earn money in agriculture, but we only included these 7 because they are the only ones that may provide you with consistent income sufficient to meet your daily needs. Here we’ll talk about only 7 strategies to trade agriculture for profit without actually farming. Another way to earn money in agriculture is through farming, but this is only an option for people who have the patience to wait a long time. The methods listed below are perfect for you if you’re seeking for strategies to generate money in agriculture.

The Top 7 ways to make Money in Agriculture or trading in agriculture

1). Supply of agriculture Produce

2). Helping supplier of agriculture produce source for a produce (sourcing agent)

3). Purchaser (purchase agent)

4). Storage

5). Exportation of agriculture produce.

6) Investing in a farm

7) Online Farming

As was already said, there are various agricultural trade options, such as farming, raising poultry, fishing, etc. But I’ll only talk about the first seven.

Like any other business, the agriculture industry requires some basic understanding before one can get started. Failing to follow the industry’s guidelines will seriously harm you and cost you money.

Trust is the first step in determining if a career in agriculture is right for you. Are you the type of person who has trouble entrusting others with your money? Or are you the type of person who is willing to take a chance even by entrusting others with your money? Agriculture industry is risk-oriented.

I am not suggesting you involve yourself to whoever to meet in the name of doing business but after doing your homework, My thought here is ” Agriculture business is all about risk ”

1. SUPPLY OF AGRICULTURE PRODUCE.

The excellent thing about agriculture produce supplying is that you don’t have to store the produce. You may make money in agriculture by finding ways to supply the food to exporters and local manufacturing businesses. All you have to do is look for a supply contract, then look for produce, and then supply it.

Working closely with a sourcing agent will make your job as a produce provider easier. As a produce supplier, you purchase the produce directly from the farmers at farm gate prices and supply it to exporters or local manufacturing enterprises at an agreed-upon price. Agriculture produce suppliers make money in agriculture due to the lower price of food they received from farmers. 

Let take sesame seed as Example; sesame seed can be source from farmers at #105,000 per ton and then resell to exporters at #120,000- #140,000 ex-work. Also, if the exporters demand it to be supply to he or her warehouse then the cost of logistic and others minor expenses will be included, Here the supply make about  #15,000-#35,000 as a profit per ton. too small right? But not as you see it.

Let’s look at it this way, you got a client that need just a truck which is 30 ton and you make #15,000 per ton.

Now let’s check it #15,000*30 =#450,000 of pure profit per truck.

sesame is agriculture gold seed which demand is very high and at times you will never meet up with the demand, some client will demand a supply of 100-10,000 ton if not more.

Same apply to the supply of cashew and peanut, as  said earlier you don’t need to buy and storage, but you get the supply contract before you source for it and then supply it. In a second thought, you can buy at the beginning of the season and store it while you or your sourcing agent source for buyers. Doing that will give you at least 80-100% profit.

For cashew , I suggest you buy and store while waiting for buyers for resell.

Cash Crops That you can Trade On; Sesame seed, Cashew Nut, peanut (groundnut ) Moringa seed,  maize, ginger , soybeans, etc.

2. SOURCING AGENT: 

A sourcing agent is essential to the agriculture industry, despite the fact that many newcomers perceive it as a money-waster or a kind of fraud. But I’m here to tell you that if you’re serious about making your agricultural business a straightforward endeavor, an agro sourcing agent is a necessary addition to your agro channels of transaction.

A sourcing agent is a person who assists you in your search for a specific produce and who informs you of the availability of the produce in various locations. Another means of generating income in agriculture is through sourcing agents.

You earn money as an agriculture sourcing agent through commissions. A sourcing agent can make money in agriculture by connecting the seller and the buyer. A sourcing agent charges a supplier or exporter a commission per ton or a flat rate fee on a total or estimated amount of the transaction.

How much a sourcing agent makes will depend on the type of crop and how much the agent agrees to pay the supplier or exporter. A sourcing agent may receive a commission of N2,000 to N5,000 per ton. 

3. PURCHASER (Purchasing Agent)

As a purchaser, you can earn money in agriculture per mudu, per bag, or per kilo. A purchaser is an agent who assists suppliers or exporters of agricultural produce in making purchases on their behalf. Although the relationship between agro-supplier and exporter is highly codified, TRUST is the major issue here. The release of funds to the buyer for the purchase of produce is required in agro trade, but is that always going to be simple? You gave a total stranger millions of naira! There are extremely few persons who can handle such a difficult duty and risk.

Here is how a purchaser make money in agriculture;

A purchaser only focuses on how much you agree with him as a commission, also that depend on the type of the crop. Some crops are only sell in bags , some by mudu and some by kilo, Whatever is the means of the selling , purchaser charge per that means.

Example : if its per mudu . lets say a mudu cost #150 , a purchaser will charge you #170-#180 the #20-#30 different is what will be he or her commission. if it happens you the purchaser able to buy 100-1000 mudu in one market or per visit to a particular village then that’s will be your earning of that day.

Let’s check it out : Let’s say you buy 100 mudu and you earn #20 per mudu. #20*500=10,000 (#10,000) in one market. let say you attend 3 _4 market in a week. yes its possible looking at a fact here in lafia. 6 market in a week.

Since you and the supplier or exporter agreed to a commission, there is no need to keep the true price of the commodity a secret. Eventually, you, the owner of the money, can accompany the buyer to the market. While you, the buyer, make the payment, the buyer does the purchasing. 

4. STORAGE

You can make money in agriculture doing storage, it’s a kind of business that you purchase an agro produce at a beginning of a season or at low price and store it for some period of time , then resell it when the price raise.

The following crops can be storage for maximum profit:

  1. Egusi (hotcake)
  2. sesame seed(hotcake)
  3. cashew nut
  4. soybeans
  5. maize
  6. peanut

etc.

5. EXPORTATION OF AGRO PRODUCE

Exportation business is another great ways to make money in agriculture, Exportation is all about exporting agro produce to international market. Though i don’t know much about this but i have done some couple of exportation in small scale but i assure you is a good ways of making money in agriculture.

To make good money in this , you need to have a register business name at least for trust and easy to get a contact. a simple google search will give you more info regarding this.

6. INVESTING IN A FARM

One of the main ways you can make money without owning a farm is through agricultural investment. You can either invest in someone’s farm by providing the startup funds and then reap the rewards. Additionally, there are online farms that make it simpler to invest in a farm without actually being there. Giving a spare piece of land to someone with the time to help manage it for profit is another way to invest in a farm.

7. ONLINE FARMING

Online farming is quite similar to farming that requires money. In online farming, all you have to do is invest money in the planting of a specific crop over a set period of time, and you’ll receive both cash and earnings once the crop has been harvested and sold at the end of the planting season. There are numerous legitimate online farms that provide out good incentives

Did You Know ‘Smart Farming’ in Agriculture?

Modern Information and Communication Technologies (ICT) are used in farming techniques as part of smart farming. With the advancements in plant breeding and genetics, smart farming is reshaping the agricultural industry through the integration of ICT technologies including precision machinery, sensors and actuators, geo-positioning systems, big data, unmanned aerial vehicles (UAVs, drones), robots, and more.

An agricultural production strategy based on a more precise and efficient approach has the potential to be more productive and sustainable thanks to smart farming. Better decision-making or more effective exploitation operations and management are two other benefits that come with smart farming for the farmer. Environmental needs, for example, can be met more effectively by smart farming.

KEY NOTE

Make money in agriculture is easy as ABC but with a proper guide and mentorship.

Do you have more info to share with us regarding how to make money in agriculture? you are free to comment on comment box or contact me through our contact page, we love you to also share this article with your friend on social media .

Source: http://davidprof.com/blog/top-5-ways-to-make-money-in-agriculture/

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Muhammed Alhassan