Investments in agriculture - instructions for investing in the agro-industrial complex of Russia in 7 steps calculating the profitability of investments in agriculture

Investments in agriculture - instructions for investing in the agro-industrial complex of Russia in 7 steps calculating the profitability of investments in agriculture

Not all novice farmers know that it is possible to receive a grant not only from the state, but also from a private investor, an investment fund. Such funds do not provide financial support at a time, but in stages. The farm receives the first grant, and in case of successful development and reporting, the investment fund pays the next tranche.

How to look for a private investor

When looking for a private investor, you need to keep in mind that he is unlikely to be interested in a small project of a not too large farm. However, if you have promising ideas and you can reasonably justify them, it is quite possible that a private investment fund will be interested in them, and your project will receive financial assistance.

It is important that a grant can be obtained not only from a Russian private investor, but also from a foreign investor interested in agricultural business in our country.

Requirements for candidates for a grant in this case will vary greatly, so when submitting an application, you need to know exactly who is going to invest in the project. Before sending your application for consideration to an investment fund, you need to adjust their form with the requirements of the investment fund. The business plan will also need to be changed to meet the investor's needs.

So, almost all foreign investors want to receive as accurate and detailed reports as possible on how the farm uses the funds received from the investor.

Private domestic investors, as a rule, negotiate their investment conditions depending on their personal interest. Government sponsors consider the most important for a positive decision on granting, the number of jobs that can be created during the implementation of the project, and the ability to provide such potential workers with social protection.

Foreign private foundations, grants for the development of farms in Russia

Here is an example of a private fund, not a resident of the Russian Federation, ready to sponsor agricultural enterprises in Russia and Kazakhstan. A valid offer from a foreign company that is ready to invest in agricultural enterprises in Kazakhstan and the Moscow region.

The company is ready to deal with both direct investments and project financing. The conditions offered by this investor are standard - 5-7% per year, for a period of 10 years.

At the same time, the requirements for the project and it are quite high, although quite reasonable. The investor puts the quality of the project first:

  • high demand. At the same time, he is interested in its relevance not only in Russia, but also abroad;
  • innovations used in the project;
  • environmental safety of the project;
  • prospects of international cooperation. For example, such options in which raw materials or technologies are foreign.

Prospective investments are investments that do not depend on market fluctuations, luck, intuition and fashion trends in the economy. The land and what it gives are values ​​that people will always need. No digital technologies, even the most advanced ones, can replace bread, milk and meat.

This is why investors looking for long-term and stable profits invest in agriculture. It is always up-to-date, reliable and profitable. Today I, Denis Kuderin, will talk about what profitable agricultural investments are, since I have been doing this type of activity for more than two years.

In the final, you will find an overview of the three most promising companies for investing in the agro-industrial complex, plus tips on how to avoid the risks of such investments.

What is investment in agriculture

There are dozens and even hundreds of investment instruments. Some of them bring enrichment only to the investor himself (for example, contributions to exchange speculations), while others, along the way, benefit the country's economy, therefore, they are strongly encouraged at the federal and regional levels.

More and more private investors and investment companies are choosing investments in agriculture and the agro-industrial complex as a long-term development strategy. This business is grateful, useful and profitable, if you approach it competently.

I must say that until recently, investors tried to bypass this industry. From an economic point of view, agriculture is an area where investments, by definition, cannot provide quick returns.

To get income from the harvest, you need to prepare the soil, plant seeds, grow a crop, harvest, preserve and successfully sell. Not every investor has the patience and knowledge to control every stage.

It is much faster to invest in stocks and sell them at a higher price in a couple of weeks. Even production pays off much faster than, say, creating a farm from scratch.

However, the economic reality of recent years has led to a change in priorities. Anti-Russian sanctions forced large investors to take a closer look at the domestic market. If European cheeses and Italian ham are no longer brought to us, we have to look for alternative ways to saturate the food market.

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