5. How can you benefit from buying farm land through BIF?
- BIF is the only company which manages the land transaction as well as manages the agri land development with full ownership and on record transactions. We only suggest those lands where we will produce. Further, being a company, BIF legally cannot pose any challenge to agri land ownership and title, which is a common risk with individuals and firms and societies.
- BIF model includes a one-time land preparation fee of about Rs 10K per acre, and no other charges are expected from the farm land owner. The farming income from the plantation is shared in 80-20 ratio between Farm Owner and BIF. The crop sell belongs to the owner and they can take tax benefits of agri income.
- Land value appreciation and productivity improvement happens when we steadily build infrastructure.
- We accumulate order from similar profiles, and keep the access and other infrastructure divided and usable for all land owners. It is difficult to do so as an individual.
- Last but not least: we get good prices due to careful accumulation and our experience. Else, as individuals, up to 100% premium is charged by other dealers, with no assurance of land boundaries and usage.
6. How much annual agri income per acre can one expect?
A farm land owner has to understand that agri income is dependent on many factors, including natural factors like availability of rain/water and sunlight at suitable times, unforeseen pest attacks that can cut yield, and demand-supply situation when the crop is ready for sale.
While Big India Farms (BIF) is ahead of most farmers in India in terms of anticipating and managing risks, but nobody can remove all the risks.
We believe that a net annual income of about Rs 10,000+ per acre is achievable (tax free income). The income will always match the prevailing food price inflation, so this income can increase with increasing food prices and with improvement in our farm infrastructure.
7. Who are the sellers of the current land parcels?
Sellers are mostly small farmers who are:
- Getting old and their newer generation has gone to cities to work
- Have small holdings and cannot afford aggregation, which is a must to share costs
- Families who hold a sizeable chunk amongst numerous members and are unable to divide the land and hence selling as a chunk.
8. How does BIF ensure clear titles for the farm land? How are encroachment risk and title risk managed ?
- BIF has a legal team to verify records and follow legal process from history verification, land sizing, public notice and family tree check with revenue records. Further, we do not release full amounts till possession is granted and demarcation competed.
- Encroachment is a common risk with Agri Land. They are mostly due to: (a) absence of prior demarcation, and (b) local manipulation that may happen with outsiders or small land owners but since BIF is an establised organization in its region, we don't face this issue. Further to take care of 'a', we get the land demarcated by patwaris before registry, and then take possession.
- Title risks are most common in Urban lands/ property, and not in Agri land. This is due to Urban Land Ceiling Acts and associated rental acts are very different from Agri Land Rules. Agri Title disputes are mostly around family distribution. Agri land title process has been same for last 100 odd years. With computerized records in almost every state, this risk is limited to checking of history and family tree. We get both these validated by local officials and our lawyers.
9. Who all have already bought farm land through BIF?
Because farm land is a high quality long term asset, we have buyers from a wide range of investors. Professionals across industries, including Directors/CXOs of companies, have bought farm land from BIF over the past 3 years, and we continue to receive strong buying interest from many more such professionals. While the common preference seems to be 5 acres per member, we also have many members holding from 2 acres and 21 acres. All our members have a desire to own good quality land as a long term asset, which appreciates in value while giving annual income.
10. What are the eligibility criteria for a buyer?
Any Indian national can buy farm land. If you are currently abroad on work, then your family member located in India can buy on his/her name.
11. How many acres can one person buy? Are there any minimum and maximum limits?
The land ceiling restriction varies based on the type of land (irrigated/ unirrigated/ rocky) etc. For most purposes, we should take 40 acres as the ceiling per person in the state. A family can more land jointly on various names. The minimum order should be for 5 acres (we may increase it to 10 acres in future)
12. What are the steps in land purchase process? How long does it take?
Following are the steps for land purchase:
- We receive your confirmed interest to buy a specific number of acres at our predefined price for the chosen farm land. We will share photographs, location and image from satellite and the records prior to the registration.
- Then buyer shall come for making the payment and land registration. Please note: (a) It is important to spare an extra day for registration, and (b) in case you want more time/ flexibility in dates, Big India Farms can take Power of Attorney and possession of the land. In this case, you will need to transfer an additional amount equal to the base land rate.
- On the date of registration, the buyer has to pay the amount to the seller in cash, and the stamp duty applicable. The value is recorded in the land registry papers. This shall be communicated much prior to the date of registry.
- Receipt of registry takes 10 working days.
- Name transfer can be initiated 45 days post registry date under a process that requires buyer’s presence. Or it can be initiated 180 days post registry for direct process which automatically transfers name.
- Post registry , the BIF annual fee for land management agreement shall be completed and the fee becomes payable, which will go towards land maintenance, and land preparation of the land for farming. Normally, in first year or part of second year, depending upon which season the purchase was done, we do limited crops to minimize damage from neighbors/ animals and loss of irrigation/ power, and to test the soil and plan layout.
From a buyer/land owner's perspective, once the above steps are done, no addtional trip is required. We will share updates over email, and BIF land management fee can be paid by cheque or direct bank transfer. Of course, we always welcome our members to visit us and the farms.
Every economic data is pointing to the fact that increasing population and economic growth of India will significantly increase food demand and food prices, due to supply constraints. Therefore, we believe our farm land offers a high-quality long term investment opportunity for Indian nationals to invest in farm land and benefit from the increasing food prices in the coming years. This is a win-win model because the farm land owner benefits from tax free income and land price appreciation, and BIF benefits from the increased scale of operations and lower farming expenses per acre.
If you want to buy farm land through Big India Farms (BIF), to express your interest and receive a copy of our farm land management agreement, please use the form below.
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