Leasing land for farming is a common practice in Nigeria, particularly, in rural areas where land ownership is often communal.
This allows farmers to access the land they need to cultivate crops without having to purchase it outright.
In a conversation with Dr. Adekunle Zaka, who has a pineapple farm, he believes leasing land for farming remains an important option for many Nigerian farmers who lack the resources or capital required to purchase their land. It is flexible to run without spending your whole time.
He says: “This is my third year in this business. It is what I have been practicing, so I am speaking from experience and have recovered my capital. I have a friend who is also into this business; this is what he has been using to sustain himself and also sponsor his younger ones at the university level.”
Capital
Like every business, the higher the capital, the more you can do. A plot of farmland will cost you between N400,000 and N450,000, which is the buyout price. Aside from that, the only money you will spend is on weeding and insemination, which is about.
Profitability
“If you had done your proper monitoring between three and four years, you would have realised your capital and profit on the farm. If your produce comes out fine and you have good negotiating power, you should be able to sell it for between N150,000 and N200,000 in a year. And also, you know, land appreciates; it does not diminish. So if I decide to sell it, I am not going to sell it below the amount I acquired it, but far above it. Just like my friend a few months ago, he leased out some of his pineapple farm,” he points out.
Market
He says: “You need not look for buyers or marketers to come and buy your farm produce when harvesting. The marketers are on the ground already. Your farm produce is not even enough for them, so they are there to buy everything from you.”
