Private Limited Company for farming?

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alpeshshinde

New Member
Hi,

I am currently working in software industry. I have always found agriculure fascinating. I have been always interested in farming as a business.

I am from Maharashtra and still interested in farming as a business. I dont understand why has it been unprofitable for farmers.

Cany any one guide for a start up?

Regards,
Alpesh
 

ezeevivek

Member
To get tax benefits a Pvt Ltd firm is never suggested and also it has lot of formalities to be fulfilled every now and then. Consider a partnership firm instead.

Regarding you second point - Old uneducated people and methods making farmers way behind thier capabilities. Also if you have your own marketing channel by eliminating middle mans then there are lot of possibilities.
 

manojsinghchandel

Well-Known Member
hi

hi

Why farming is considered as unprofitable to farmers ?

Following reasons:

Av. land holding in India is very small less than 2 acre/ farmer. Therefore not economically viable.
Most of the farmers adopt monocropping pattern, there is need to diversify towards multiple cropping integrated with dairy farming type activities.
In India, agriculture is dependant upon monsoons, about 70 % of land is unirrigated.
Farmers goes for production than search for market, produce is perishable you can't wait to get price rise than sell it therefore they were forced to sell at lower prices
Post harvest management is a big problem around 50,000 crores annual losses in fruits and veg. due to these losses.
Storage facilities are not there
Agriculture is a way, it's not a product that could be manufactured in machine. Nature takes time to get the produce i.e. season-wise production.

But I feel profits from farming could be realized if done properly with a proper plan taking into account all the factors of production and marketing.

There are many cases where farmers are getting good profits from farming. There is need to replicate such models and that requires full time devotion.

Regds
 

Agriculture - Profitable business or Not - Why?

Hello Manoj:
Very good response.
I am wondering if you yourself have a agri oriented business, incorporating ideas that would eliminate loss and increase profit in agri activities.
Please write to me
Thanks and with kind regards
 
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vishwakarma

Well-Known Member
why farming is unprofitable in long term today and solutions for profitable farming

Hi,

I am currently working in software industry. I have always found agriculture fascinating. I have been always interested in farming as a business.

I am from Maharashtra and still interested in farming as a business. I don't understand why has it been unprofitable for farmers.

Cany any one guide for a start up?

Regards,
Alpesh
Why farming is unprofitable in long term today,

First agree to the fact that

Farming as a profession, to live our life on this planet earth, is looked upon as a last option today by most of the people living on this planet earth.

Given a choice most of the people engaged in farming activity are ready to leave the farming profession as option to live their life, if they get other options.

There was full page article in daily Sakal, Pune, about, the problems of finding suitable life partner for the young boys engaged in farming.

Please have look at the matrimonial ads, and find out how many girls / parents of the girl are ready to marry looking for young boys engaged in farming activity.

There is strong reason, most of the people who takes up farming as option to live his life, suffer financially.

Why it happens, there are reasons, and known to everybody

1. Because of the system that is in place, which decides the farm gate prices. The farm product prices are decided in auction process, that takes place, far away from the farm & after harvesting the farm produce and in the premise not owned by the farm producers. So in the long term it is buyers of the farm produce who benefits financially.
2. Non availability of equity funding
3. High interest rates of debt funding
4. Wrong methods / material / tools selected / used in agriculture
5. Lack of proper training / guidance / access to information available to the people involved in agriculture activity
6. Non availability of sufficient / uninterrupted electrical energy supply to the farm sector
7. De-moralization of the people engaged in the farming activity

and there are many other.

Now as per simple rule,

"If there is problem there has to be a solution"

Ask people for solution and there will be infinite suggestions you will get...

But what is required is practically proved / field proven solution

That is exactly what we are trying do in our Green House - Dairy Integrated Projects that we are promoting all over India

Our first "Green House - Dairy Integrated Project" in state of Rajastan, is the beginning of what we are trying to do, in long term, to solve some of the above mentioned problem and if possible all of them, if time permits.

We will never able to solve all the problems 100%, because the time required to do is more that what is available in our life time on planet earth.

With our first solution, will target to get better farm gate prices, for the farm produce that we will be cultivated in 10 green houses of 1000 mts sq each, in the state of Rajasthan

Then there are many other solutions we will be implementing to change the way world looks upon people working in the farm, in agriculture sector.

Ultimate test weather our solutions are really effective or not will be known when, the young boys working in our Green House project will be preferred choice over software engineers / govt officers / doctors in the matrimonial ads.

Let us see, what we can achieve.

If anybody is interested in knowing what we are doing / interested in joining us, please send your contact mobile no. / email ID through private message to me.

Regards

MRC
 

udayabhat

Member
Dear Sir,

Let me have more details about your Project. You can mail me

Regards,

Uday
 
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mkiran2080

New Member
Hi MRC,

I am very much interested to start a Integrated Green house project in Chennai. Can you please help me in this. Please contact..
I want to start this project ASAP.
please give me your details to my email id. I will call you.

Regards
Kiran
 
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sampadafarms

Established Member
We do! Sampada Farms!

Dear Sir,

We can provide you comprehensive consutlancy services for the agri entrepreneurs like you. Please contact us directly to sampadafarms@gmail.com We will answer all of your questions and clarify your doubts on various aspects of agriculture and your proposed project. Please note that we can extend our professional services for the farmland which is not less than 50 acres.

Regards
Sampada Farms & Consultants
HYDERABAD
www.samapdafarms.com
 

cosmosgreen

Active Member
why farming is unprofitable in long term today and solutions for profitable farming

Dear Sir,
I have read your posting as also many responses within a short time. This signifies that many are interested like me in this area. Let me try and explain what I feel about this.

1. When we speak of agriculture we must classify into two distinct groups; large farmers and small and marginal farmers. Combined they constitutes 71.4% of our population.

2. The large holding farmers are very prosperous and are very influential as well and many are in politics! They can dictate the Agri Policy of the nation. They are about 10% in this category.

3. The balance is small and marginal farmers whose holdings are less than an acre or so. They are the most down-trodden and their life is in quagmire. They are the ones who commit suicides to come out of the debt trap.

4. Problems that bug these farmer class is small fragmented holdings that do not lend for any purposeful farming, perpetual debt in the hands of the village money lender, inability to market his produce profitably as his holding capacity is poor and is in need for urgent money. These make him sell at prices un-remunerative and the vicious cycle of debt traps him again.

The above are the broad issues that drive these classes of farmers into penury. There is a way out. I have been studying these problems in close quarters and have a solution.

This is to partner with farmers and make them equity holders in a firm that farmers and an investor(s) jointly promote. The agricultural production is conducted by professioanls in agricuture like any new industrial set up. Employ the farmer as labor and pay wages. Pay some kind of holding money for his sustenance when the land is handed over to the firm so created. Use him as a resource if he is too old for a field work and thus embrace the community of these farmers. Do not drive them away or buy their lands or lease their lands, giving them a feeling of alienation. By this method farming can be profitable and the two constituents [farmers and investors] can make enough money to engage more and more farmers.

Based on the above I have identified three villages in Tuticorin District with 200 acres each and farmers are willing to go by the above principle. I am actively looking for investors. I shall be happy if more join and can replicate in their respective areas to find a solution for these farmers. By doing this we would be giving back something to the society from where we derive so many benefits all through our life.

Raghavan
Please contact..
 
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cosmosgreen

Active Member
why farming is unprofitable in long term today and solutions for profitable farming

Dear Sir,
One of issues that I overlooked to mention is that we have formed a private limited company with the intention of issuing equity shares to the farmers in Tuticorin and thus making them as share-holders in our project. Transparency and a mind set to wards poor villagers will be an important ingredient for the investor in this business. Money should never be the focus but money will come in with out fail.

Raghavan
Please contact...
 
Last edited by a moderator:

vishwakarma

Well-Known Member
Dear Sir,
I have read your posting as also many responses within a short time. This signifies that many are interested like me in this area. Let me try and explain what I feel about this.

1. When we speak of agriculture we must classify into two distinct groups; large farmers and small and marginal farmers. Combined they constitutes 71.4% of our population.

2. The large holding farmers are very prosperous and are very influential as well and many are in politics! They can dictate the Agri Policy of the nation. They are about 10% in this category.

3. The balance is small and marginal farmers whose holdings are less than an acre or so. They are the most down-trodden and their life is in quagmire. They are the ones who commit suicides to come out of the debt trap.

4. Problems that bug these farmer class is small fragmented holdings that do not lend for any purposeful farming, perpetual debt in the hands of the village money lender, inability to market his produce profitably as his holding capacity is poor and is in need for urgent money. These make him sell at prices un-remunerative and the vicious cycle of debt traps him again.

The above are the broad issues that drive these classes of farmers into penury. There is a way out. I have been studying these problems in close quarters and have a solution.

This is to partner with farmers and make them equity holders in a firm that farmers and an investor(s) jointly promote. The agricultural production is conducted by professioanls in agricuture like any new industrial set up. Employ the farmer as labor and pay wages. Pay some kind of holding money for his sustenance when the land is handed over to the firm so created. Use him as a resource if he is too old for a field work and thus embrace the community of these farmers. Do not drive them away or buy their lands or lease their lands, giving them a feeling of alienation. By this method farming can be profitable and the two constituents [farmers and investors] can make enough money to engage more and more farmers.

Based on the above I have identified three villages in Tuticorin District with 200 acres each and farmers are willing to go by the above principle. I am actively looking for investors. I shall be happy if more join and can replicate in their respective areas to find a solution for these farmers. By doing this we would be giving back something to the society from where we derive so many benefits all through our life.

Raghavan
Please contact..
Dear Raghavan,

Thanks for your posting on this forum

Congratulation for succeeding in bringing together the small land holding farmers.

We need people like you, who are interested in working, for uplifting the small land holding farmers and making them stand on their own and giving them economic freedom.

For almost last ten years, I am working on development of my business plan, that is suitable / beneficial for small land holders, those having land less than one acre.

What I am doing in my business plan is that, I am integrating all the activities right from the input to the farm till plate on kitchen table, under control of single business entity, with active participation and for benefit of small land holders.

To be frank, I am not doing something new or anything great, I am just taking forward the work of my father and my mother. My father and mother, both were always more interested in solving the problem of other people and did so till they were alive.

I am discussing my business plan of setting up chain of small Green House - Dairy Integrated Project all over India, in different states, with the funding sources / key decision makers in banking / investment sector in India and at international level.

I am receiving very good response for my business plan, from finance sector in India and at international level.

The business plan has been accepted as viable business proposal for funding

What the international finance sector wants in place & ready, before they can proceed and consider the business plan for funding is,

* Concept demonstration pilot project
* Group of large no of small land holding farmers ready to participate in the business plan
* Company in place, as a business entity, already incorporated as Limited Liability Corporation (Publicly held), strictly no govt or political involvement / interference. A corporate company following a strict ethical code of conduct in matters related to social and environmental responsibility.
* Founders / promoters of company having relevant experience and suitable track record
* Board of directors ( both executive / non executive) of company having relevant experience and suitable track record
* Top management team of company having relevant experience and suitable track record

Now you may ask why the investors are asking all above, because I am asking INR 5000 Cr, to be utilized in in next ten years, at annual interest rate of less than 6% and loan maturity period of more than min 25 years, for funding of this business plan of proposed Limited Liability Corporation (Publicly held), to be implemented / developed in time span of next ten years.

This amount is not very big to arrange, for the Investment Bankers in financial sector. To fund this type of project and they can easily arrange funds from retail / institutional investors, by issuing of Agriculture Bonds.

I know fully that what I am trying to do is not easy, but I know that even if I am partially success in my attempt till I am alive, somebody else will carry forward my work.

What I believe that any work started with honest / good intention, for solving the problems of large number of people, gets carried on, even after the people who work on it, do not exist.

All the people in this world are not same, we have to find out right people for above project.

Today Internet is changing the rule of the game / the way the system, that we live in functions.

Finding right people / reaching them / interacting with them is far easier today than in past, because of Internet

It is no longer easy or possible for few people, in long run to exploit the society, by keeping the good intentioned and like minded people apart.

To succeed, what I need to do is that, I have to bring together right and like minded people, those who believe that working for solving the problem of others, is more important / satisfying than working to accumulate the wealth beyond what is necessary to live on this planet call earth.

I have full faith that I will get like minded people ready invest and /or to join and work in the proposed Public Limited Company, who will implement the business plan for the benefit of small land holders and food security of others.

Regards

MRC
 

vishwakarma

Well-Known Member
Dear Sir,
One of issues that I overlooked to mention is that we have formed a private limited company with the intention of issuing equity shares to the farmers in Tuticorin and thus making them as share-holders in our project. Transparency and a mind set to wards poor villagers will be an important ingredient for the investor in this business. Money should never be the focus but money will come in with out fail.

Raghavan
Please contact...
Hi,

I think you are proceeding on right track.

Let me know what I can help you

You can send me your contact details, like email ID / mobile no., by sending private message.

Looking forward

Regards

MRC
 

vishwakarma

Well-Known Member
what I can contribute is ...

Dear Sir,
One of issues that I overlooked to mention is that we have formed a private limited company with the intention of issuing equity shares to the farmers in Tuticorin and thus making them as share-holders in our project. Transparency and a mind set to wards poor villagers will be an important ingredient for the investor in this business. Money should never be the focus but money will come in with out fail.

Raghavan
Please contact...
Hello,

I can help your Pvt. Ltd company formed by group of farmers, in the way similar to what I am helping the group of 10 farmers in state of Rajasthan.

These ten farmers have set up one green house each, having area of 1000 sq mt.

These ten green houses will start producing color capsicum from third week of August, 2010.

Each green house, having area of 1000 mts sq, will produce avg 100 kg of color capsicum per day, for total 150 days of harvesting season.

The senior managers from the color capsicum seed company, and others are offering assistance to achieve the production target and good quality.

We are expecting that, the avg / minimum farm gate price, that we can realize (this is my job), will be Rs. 50=0 per kg.

This turns out to be Rs. 5000=00, sales revenue generation per day, from one green house having area of 1000 mt sq.

In the total 150 days of harvesting season, the total revenue generation, from sale of color capsicum will be, Rs. 7,50,000=00

The cultivation expenses ( recurring investment), in growing the color capsicum, in the one green house, having area of 1000 sq. mts is max. 1,00,000=00.

This expenses is, including the payment for the labor who will work in the green house.

Please make the note of the fact that basic investment of Rs. 10,00,000=00 is taken as one time investment / as fixed investment.

In case of the availability of the subsidy, this fixed investment required from the the green house owner will be less, depending on what subsidy is available.

In the case of state of Rajasthan, this fixed investment is Rs. 2,50,000=00 only and the rest of the fixed investment will come from the state govt, in the form of Govt. subsidy.

At the end of the harvesting season, what we expect to be left with the green house owner is, Rs. 6,50,000=00 in one season.

Part of this Rs. 6,50,000=00 will be used for repaying the fixed investment made in erecting green house having area of 1000 mt sq.

I hope this is quite good amount to make from agriculture activity in 1000 sq. mts. of land, in one season.

Regards

MRC
 

vishwakarma

Well-Known Member
Hi MRC,

I am very much interested to start a Integrated Green house project in Chennai. Can you please help me in this. Please contact..
I want to start this project ASAP.
please give me your details to my email id. I will call you.

Regards
Kiran
Hi,

Please send your contact details

1) Email ID

2) Mobile no

Through private message

I will send all details to you by email

Regards

MRC
 

Dear Mr Alpesh Shinde,
Many members have given their different views about the why the agri sector is not a profit making business. As mentioned above we all r depending on rain only for cultivation unless n until there is a proper required rain it is not possible to do the cultivation.On n above during ploughing sufficient quota (required quota) of Fertlizers r not available .I am a regular reader of AGROWAN daily agrinews paper every where there is scaricity of fertilizers which is a scaricity created by the traders to sell @ higher rate. One can not depend upon the Govt to act/ take action against such culprits. A good planning as well as supportive business like dairy/ goat/sheep/rabbit farming is necessary to survive in this sector. Unless u sell directly ur goods directly to consumer it is not profitable as middlemen will make money or keep stock of the products. As Indian r being poor and work always hand to mouth n r having loans from private money lenders they have to be oblige to them n have to sell their products them only. THis is in short u should ur own funds n put ur endelles efforts n work hard for full time this is not a part time job. Ifeel u will decide what to do after reading this. THis write up is based on my readings of many papers n examples seen with my own eyes. Unless n until abundant water supply is available this sector is going to like this only.
 

seshumyob

Member
Follow Subhash Palekar Natural Farming methods

Hi Alpesh,

For less expensive(low risk) & highly efficient farming ZERO BUDGET NATURAL FARMING techniques by SUBHASH PALEKAR are the ideal ones.He calls these techniques as Vedic as they were followed by our ancestors from 1000's of years.He is also from Maharastra.

Read some of this books to understand the current problems in Farming(irregular incomes, suicides etc.) & how we can fix these with ZERO EXTERNAL INPUT Natural Farming. I have ordered these invaluable books (waiting for delivery):
ENGLISH
1) The Philosophy of Spiritual Farming (Zero Budget Natural Farming)
Part 1
2) The Principles of Spiritual Farming (Zero Budget Natural Farming)
Part 2
3) The Techniques of Spiritual Farming (Zero Budget Natural Farming)
Part 3 & part4

If you are well versed in Marathi Mr. SUBHASH PALEKAR has written invaluable books in Marathi as well.

Even I am working in Software currently but planning to retire @40-45 years of age & start Natural farming :)

All the best.

Regards,
Seshu
 

alpeshshinde

New Member
Hi Mr. Shyam Sundar,

Thank you very much for your bold reply. I really appreciate your view points.

I have one question.

Can I directly sell my farming produces in my Own shop? Any regulations can prohibit me from direct selling in market?

Please reply.

Regards,
Alpesh Shinde
 

vishwakarma

Well-Known Member
Dear Mr Alpesh Shinde,
Many members have given their different views about the why the agri sector is not a profit making business. As mentioned above we all r depending on rain only for cultivation unless n until there is a proper required rain it is not possible to do the cultivation.On n above during ploughing sufficient quota (required quota) of Fertlizers r not available .I am a regular reader of AGROWAN daily agrinews paper every where there is scaricity of fertilizers which is a scaricity created by the traders to sell @ higher rate. One can not depend upon the Govt to act/ take action against such culprits. A good planning as well as supportive business like dairy/ goat/sheep/rabbit farming is necessary to survive in this sector. Unless u sell directly ur goods directly to consumer it is not profitable as middlemen will make money or keep stock of the products. As Indian r being poor and work always hand to mouth n r having loans from private money lenders they have to be oblige to them n have to sell their products them only. THis is in short u should ur own funds n put ur endelles efforts n work hard for full time this is not a part time job. Ifeel u will decide what to do after reading this. THis write up is based on my readings of many papers n examples seen with my own eyes. Unless n until abundant water supply is available this sector is going to like this only.
Hello,

There are many farmers who did technically and financially successful farming.

One of the best Example is Mr. Dadasaheb Shembekar.

There is autobiography available.

Any one who is interested in doing technically and financially successful farming, should read it

Regards

MRC
 

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