Financial Question: Is Farming A Business or An Investment?


Best Responder receives 1 acre of land on FREE Lease, Seedlings and 5,000 naira.

Offer Valid till May 31, 2020.

Farming is a business as it's used to generate financial revenue for individuals.
Although it could still be an investment if your aim is to produce return through financial market.

op, what is the diffrece between completed and finished?

Farming is an investment.

Farming is a business... Reason is because it's a 50/50 task... You can gain... You can loose.. You can't know the estimated profit you can make from just one season alone

Unlike investment where you can just put a little money... Sit back... Then when the period matures... You cash out... You can be sure of your profit


I hope I win this

To me farming is just a normal business but at the same time an investment,

for example you bought a land for farming today and as of next 5 to 10 years the land value increases so also your production in farming,

to me they can be somehow called a business and still be an investment

cheers!

Business has to do with any commercial enterprise or activity that an individual is involved in, while investment is a commitment of resources in the hope of some form of gain.

But in finance, business has to do with generating returns using products and services, while investment aims to produce returns using financial markets.

Since we are looking at Farming from the financial standpoint, it denefinitely qualifies as a business but before it can qualify as an investment there has to be some level of financial instruments in place.

AfroAgroPower:
Financial Question: Is Farming A Business or An Investment?


Best Responder receives 1 acre of land on FREE Lease, Seedlings and 5,000 naira.

Offer Valid till May 31, 2020.

Farming is said to be a business when it's done on a commercial purpose, and it's not a business if done on subsistence basis.
Farming is always an investment be it commercial or subsistence because, you will always expect a return (which is always your harvest)

It is a business and not investment. It is a business because you have to put in all the factor of production; land, capital, labour, etc. You have to be on ground to hire people, get them trained, even if you won't be on the farm. You have to develop a business plan, feasibility study, even the master plan, vision and mission of your farm, 5 years projections, etc. You are to monitor or develop a system that monitor the activities on the farm, ensure the income of the farm meetup and exceeded the planed income, and if not adjust the plan and farm activities from time to time to be able to meetup with planed income.

On the other side, investments are instruments or other business that you just have your money to work for you. You are not involved in the business in real sense.

AfroAgroPower:
Financial Question: Is Farming A Business or An Investment?


Best Responder receives 1 acre of land on FREE Lease, Seedlings and 5,000 naira.

Offer Valid till May 31, 2020.

Farming is a lifestyle..�

First of all
Farming is defined as the business of raising livestock and/or plants.
Business is the activity of making one's living or making money by producing or buying and selling products (such as goods and services).
An investment is an asset or item accrued with the goal of generating income or recognition.
with this little idea farming could best be described as a business

Farming is a vehicle for both business and Investment. Business in the sense that you are involved combining the factors of production of Land ,labour capital and your entrepreneurial skill and getting returns for all factors employed. While as investment you may buy shares from Quoted Agricultural companies on Nigeria Stock exchange (NSE) such as Okomu Oil, Presco Oil etc and get return on your investment inform of dividend, share appreciation and bonus

Having read through all the replies posted on here; we will be giving our own reply to the subject matter above.

In the same vein; we will be rewarding everybody that replied to the queationnaire (whethere Right or Wrong) with some bonuses.


As officially stated and promised;


The Best Responder across all our social media handles will receive 1 acre of land on FREE Lease, Seedlings and 5,000 naira.

Nice Contributive Comments made by Everyone.

jumper524:
Farming is a business as it's used to generate financial revenue for individuals.
Although it could still be an investment if your aim is to produce return through financial market.

Valid point.

Victornezzar:
Farming is a business... Reason is because it's a 50/50 task... You can gain... You can loose.. You can't know the estimated profit you can make from just one season alone

Unlike investment where you can just put a little money... Sit back... Then when the period matures... You cash out... You can be sure of your profit


I hope I win this

Good perspective.


What kind of investment can you put your little money, sit back and expect monetary returns?

And why can't you do this with farming?

my2chains:
To me farming is just a normal business but at the same time an investment,

for example you bought a land for farming today and as of next 5 to 10 years the land value increases so also your production in farming,

to me they can be somehow called a business and still be an investment

cheers!

Point on.

Yodexy:
Business has to do with any commercial enterprise or activity that an individual is involved in, while investment is a commitment of resources in the hope of some form of gain.

But in finance, business has to do with generating returns using products and services, while investment aims to produce returns using financial markets.

Since we are looking at Farming from the financial standpoint, it denefinitely qualifies as a business but before it can qualify as an investment there has to be some level of financial instruments in place.

Very illustrative. Great points.

What do you mean by:

"Financial markets" and "Financial Instruments"??

Adebayour49:

Farming is said to be a business when it's done on a commercial purpose, and it's not a business if done on subsistence basis.
Farming is always an investment be it commercial or subsistence because, you will always expect a return (which is always your harvest)

Nice direction.

By your definition; any expected return on any an endeavor could be termed as an investment?!

ofemco:
It is a business and not investment. It is a business because you have to put in all the factor of production; land, capital, labour, etc. You have to be on ground to hire people, get them trained, even if you won't be on the farm. You have to develop a business plan, feasibility study, even the master plan, vision and mission of your farm, 5 years projections, etc. You are to monitor or develop a system that monitor the activities on the farm, ensure the income of the farm meetup and exceeded the planed income, and if not adjust the plan and farm activities from time to time to be able to meetup with planed income.

On the other side, investments are instruments or other business that you just have your money to work for you. You are not involved in the business in real sense.

Great. Commendable.

Muhammad2017:
First of all

Farming is defined as the business of
raising livestock and/or plants.

Business is the activity of making one's living
or making money by producing or buying and
selling products (such as goods and
services).

An investment is an asset or item accrued
with the goal of generating income or
recognition.

with this little idea
farming could best be described as a business

Good point.

benzion72:
Farming is a vehicle for both business and Investment. Business in the sense that you are involved combining the factors of production of Land ,labour capital and your entrepreneurial skill and getting returns for all factors employed. While as investment you may buy shares from Quoted Agricultural companies on Nigeria Stock exchange (NSE) such as Okomu Oil, Presco Oil etc and get return on your investment inform of dividend, share appreciation and bonus

Brilliantly written.


Seemingly the best reply on Nairaland.

AfroAgroPower:


Very illustrative. Great points.

What do you mean by:

"Financial markets" and "Financial Instruments"??

Thank you.

Financial instruments are monetary contracts binding more than one party. When financial instruments are adopted on a farm, a contact will be drawn up showing evidence of ownership and illustrating private interests in the farm.

While,

Financial markets are cost efficient platforms setup to trade financial instruments like securities (stocks bonds and so on) and derivatives (Purchase orders).

AfroAgroPower:



Good perspective.


What kind of investment can you put your little money, sit back and expect monetary returns?

And why can't you do this with farming?

I was banned sa... This is my new account

On your 1st question... Government bonds should be the answer

Then when it comes to Farming...There are some Agritech Investment platforms like Crowdy vest and the rest that are insured because they know that a Farm can be brought down to level 0 in just a day

Even if one invest in a farm.... You have to be there occasionally to know what's going on

Nezzjnr:

I was banned sa... This is my new account

On your 1st question... Government bonds should be the answer

Then when it comes to Farming...There are some Agritech Investment platforms like Crowdy vest and the rest that are insured because they know that a Farm can be brought down to level 0 in just a day

Even if one invest in a farm.... You have to be there occasionally to know what's going on

Point on.

Nezzjnr:

I was banned sa... This is my new account

On your 1st question... Government bonds should be the answer

Then when it comes to Farming...There are some Agritech Investment platforms like Crowdy vest and the rest that are insured because they know that a Farm can be brought down to level 0 in just a day

Even if one invest in a farm.... You have to be there occasionally to know what's going on

What's the username to your old account should you get shortlisted for our Agricultural Giveaways...?

AfroAgroPower:


What's the username to your old account should you get shortlisted for our Agricultural Giveaways...?

Victornezzar sa

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