Purchasing Land For Farming Leasing

[mikekim1219]

Anybody out there purchased a land for leaseing out to farmers? Any success story? What is the feasibility of this investment? In my simple way of thinking, the return from leasing is low compare the investment but land value will appreciate in the long run.

Please skip the details about farang not able to owning the land etc.,

[rakman]

Looking at the various plant crops, farmers are quite squeezed on production costs vs income.

Rice, for example, costs 6k-7k baht per rai and yield is around 448 kg per rai. Market price is 9k-10k baht per tonne, and Thai government support price is 15k baht per tonne.

Costs in Vietnam are much lower and yields are almost twice as high.

As one can see, there is little room for a farmer to rent land at any price. I don't know where you're at, or what you expect for an ROI, but it would seem to be a long term, low return proposition. But, the land will most likely continue to be more expensive over the long run.

[LennyW]

You might get better feedback if this was in the Farming Forum, a lot of knowledge on the subject there.