₦airaland Forum

UNDERSTANDING THE VALUE OF AN OIL PALM TREE AND CHOICE OF FARMLAND ACQUISITION

Within the first decade of planting ,a well maintained single tenera oil palm tree can bear fruits bunches which can yield between 15 to 20 litres of palm oil annually under good agronomic practice and the good news is that the oil yield increases as the plant increase in girth and size which enable it to carry more fruits bunches , therefore if you have 60 productive oil palm tree on an acre you can estimate the litres of oil you will obtained annually .

Base on the Nigerian standard of oil palm farming and our knowledge of farm management an estimated 20 litres of fresh palm oil is obtainable from a single plant at full maturity now worth more than 40,000 naira that multiply by 60 plant on an acre will produce total revenue of 2.4million naira or more depending on yield annually for the farm owner considering the present economic value of palm oil excluding revenue from palm kernel products ,this is only achievable through planting of the best grade of seedlings called Tenera produced by NIFOR.Imported brand from approved seed company such as supergene produced by Etani ,Calix, Yagambi produced by Wilmar can produce more litres of oil per plant under good farm management

According to Idika Aja ,a chartered broker and financial analyst ,For the nine months ending September 2025, Okomu one of the biggest oil palm company in Nigeria posted a profit of N60.33 billion, surpassing the full-year 2024 profit by 50%, and marking the highest profit in the past five years.
Revenue rose sharply to N174 billion, up 63% year-on-year, outpacing even the company’s full-year revenue in 2024 and establishing a new benchmark for the past half-decade

oil palm tree is progressive plant that produces more oil 🪔 as it continues to age and increase in height .whatever yield you are getting in year 4 will increase towards year 5 and above .Oil palm farming will not bring you the fortunes and millions within 3 to 4 years but with careful planning and patience there is nothing one cannot achieved in oil palm farming .

Oil palm farming is only possible when you can acquire your farmland in acres or hectares at an oil palm growing region in the southern part of Nigerian .Lands are more cheaper in the South west part of Nigeria than South South and South East .In the South west , One can acquire acre of land at the rate of 300k to 500k in the rural regions from family owners or private individuals and one can also acquire farmland at the rate of 140k per acre at the Ife reserve farm Osun state while you pay government tax annually which comes at a token of 40k to 50k annually .

There are farm settlements in south west formerly used to cultivate cocoa during the time of Obafemi Awolowo as the premier of the western region from where revenues were generated to build the popular cocoa house in ibadan and other critical infrastructure in Southwest .Most of these lands are being reallocated to farmers at cheaper rates to cultivate cash crops like palm trees and cocoa .

Whatever arrangement you have to acquire farmlands for oil palm farming ensure that the acquisition is a long term basis and do proper checks to ensure that the farmland is well secured from land grabbers and Fulani herdsmen.

Pictures showing the complete set up of nursery farm for 14,000 seedlings for a 200 acres oil palm project in 2026.

For farmland acquisition and oil palm plantation set up you can reach out to kkfarms on

07062053560