With the uptick in global farming to meet the global food needs, land is not going out of fashion any time soon. The problem is that land is finite resource. There is only so much land and it is already in the hands of large landowners and smallholders.
As demand for commodities increases, new aggressive farmers are looking for more land to scale up their farming operations in order to remain productive and profitable. There are aspiring farmers who are just starting out and who have the capital but no access to land.
They all need more land, bigger and more sophisticated agricultural farm machinery and more livestock. To bankroll such operations and acquire more land, the capital required is stretching more investors financial resources almost to a breaking point.
Greater demand for land finite land supply has seen the global farmland values rise steadily over the years. This has consistently made it more difficult for existing farmers to expand their operations and for new farmers to gain a foothold in agricultural enterprises and on the ladder to farm ownership.
Land still remains one of the most valuable asset classes in the Philippines. As an asset class, farmland is currently outperforming even the best performing stocks and interest-bearing cash deposits in the Philippines, especially when you factor in the combined returns that you would get from the rise in land prices and the farm business operations on the land.
IN Australia, for example, land values have grown by an average of 5.8% per year for the past two decades. Cash rates are growing by at best 2% to 3% so many landowners generally have little incentive to sell their lands.
The Alternative: Farm for Rent
The alternative is in the farms for rent. And in the Philippines, a class of farms for rent that has grown increasingly popular in the recent years is the poultry farms for rent.
Poultry farming still remains a profitable venture in the Philippines thanks to the high demand for poultry products that still outstrips the supply. That means many new entrants are still able to break even relatively quickly after putting their money in poultry farming ventures.
Contract Poultry Farms for Rent in the Philippines
A typical poultry farm for rent in the Philippines are the contract growers poultry farms. These are typically medium scale poultry farms with capacities of tens of thousands of chickens. They are mainly used for growing broilers which mature after 30 to 40 days.
Poultry farm for rent in the Philippines generally come equipped with all the required infrastructure including the poultry shelter, poultry equipment, operations, existing market linkages as well as relationships with the current contract poultry farming company that the new owner can leverage to quickly get the operations going.
Payout from a broiler contract poultry growing enterprise generally come after one and a half to two months so if you know what you are doing, you will begin earning money very fast and start working towards recouping your investments.
A contract poultry farm for rent in the Philippines will even come with labor force so the new owner will only have to institute a management or supervision structure to ensure that the farm runs as smoothly as possible.
If you are planning to rent a poultry farm in the Philippines, we would advise that you go with the contract poultry growing model. The nice thing about this kind of venture is that the contract poultry farming company will do a lot of the hard work for you including harvesting and marketing your chickens. Additionally, they will provide poultry feeds, veterinary services and supplies along with technical assistance. Once they sell your poultry, they deduct these costs and send you the net amount.
As a contract poultry grower, you will provide the contract poultry farming company with land, permit, buildings, utilities and manpower. But if you are renting a poultry farm in Philippines, you will find this infrastructure already put in place so all you have to do is apply management for the duration of the farm lease.