Agricultural land is any type of land, which is used for the purpose of farming, planting, gardening, etc. These lands can be used for other purposes related to agriculture as well.
India is an agriculture based country and its economy is based on agriculture. Almost all the agriculture based lands lie in rural regions of India. If you are planning to buy agricultural lands then you will have to take care of some points before buying. Following these points will definitely help you and will increase the productivity of your property.
Use of Agricultural Lands Actually agricultural lands are also a type of real estate property. The motto behind purchasing agricultural land mayn't be only farming. There can be various other purposes for which a person buy agricultural lands.
- Farming: The most common and general use of agricultural lands is farming. Farming itself can be done for various purposes, like self consumption of products, for selling, etc.
- Investment: Agricultural lands are also a good choice for investing in real estate. The price of lands are increasing at an alarming rate whatever be the type of lands. Even the rate of agricultural lands are increasing at a good pace. The prices of lands, which are nearby the cities or on the outskirts of towns are likely to be increased with the passage of time. The value of lands, which are located alongside the national highways are also more than the ones located far.
- Construction Purpose: Agricultural lands can also be used for constructional purpose. You may use it for constructing residential building, like farm house, cottage, etc. The lands, which are at an accessible distance from cities, can be used for building educational institutions.
Points to Consider Before Buying Agricultural Lands The main purpose of agricultural lands is farming and if you are buying it exactly for that purpose then it will be beneficial for you to take care of certain points.
- Type of Soil: The type of soil is very important in deciding the type of grain or products you will cultivate.
- Water Supply: The water supply is must for cultivation and you should consider this point before purchasing agricultural lands. The lands should be near to any water resource, like river, pond, water-dam, etc. If that isn't so the water level of that area should be high so that you can easily water your fields.
- Location of Land: You should choose the lands, which are located at safe places from cultivation point of view. If the region is frequently hit by floods then you should avoid buying lands in such areas.
Legal Issues There are certain legal issues regarding the purchase of agricultural lands or properties, which may inhibit you from buying them.
- If you are planning to use the agricultural land for residential /commercial/industrial use, then they should be converted to non-agricultural land. You will have to take an Non Agricultural (N.A) permission from the Collector of the District where the property is located. Along with that you need to obtain the latest receipts showing the payment of N.A. tax.
- The foreign citizens, who are not of Indian origin, aren't permitted to buy or acquire agriculture lands, plantation properties, farmhouses in India without the prior approval of the RBI. The foreign citizens of Indian origin are allowed to buy or acquire agricultural properties without the prior approval of the RBI but they are permitted to do so only by way of inheritance.