Bank loans are not available for purchase of agricultural land.
Maintenance charges for the first two years are already included in cost. Post that, the P & L statement will determine charges or rev share. Estimates indicate this will not exceed 4.5k / month, and we are targeting a cost neutral operation in 3 years.
We’re actually cutting it very fine! Add the land costs, homes (about 650sqft), solar + grid hybrid power plant, water management structures, etc. – it adds up really quick. We’re not doing this like a regular real estate project, and the interest is in being involved in sustainable farms and their produce for the long term.
Apples to apples, We are way lower than “just land” prices that real estate folks offer in the area. We are offering this at approx. Rs.50/sq ft while ‘developers’ are doing 250-500/- a sq ft!
In setting a personal farm the costs that one incurs in terms of infrastructure (water management, staff quarters, a home, storage, equipment, etc), inputs and salaries will easily be anywhere between 20-25L/acre over a 3 year timespan. This is apart from the check dams and gully plugs that one might construct. We are able to deliver this at a low cost because of the scale. This is where the collective advantage comes in.