Buying Land for Agricultural Purposes: The Best Guide

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Its commonly said that Land is a gift of nature. Although free, you still have to buy land. Land purchases for agricultural purposes provide well-being and stability to individuals and families wanting to participate in agriculture.

You may have found yourself wanting to purchase land for agricultural production recently. Whether for crop production, dairy farming, or raising livestock, securing a parcel of land can be an investment with immense personal satisfaction and potential profit.

However, the endeavor may feel discouraging if you are unsure how to proceed. If that describes your situation, you’ve come to the right place. In this article, you’ll find all the information necessary to successfully buy land for agricultural production.

An Introduction to the Various Agro-Ecological Zones in Nigeria

Nigeria is divided into several agroecological zones, making farming and crop production more efficient and successful. Nigeria’s soil types vary, ranging from the rainforest areas to the derived savannah of its six ecological zones. The six Agro-ecological zones in Nigeria are:

Guinea Savannah

The Guinea Savannah zone of Nigeria includes states such as  Benue, Gombe, Kaduna, Kogi, etc. Its also characterized by soil types such as sandy loam, clay, and loamy soils. Crops like maize, millet, yam, sorghum, and groundnuts thrive well.

Sudan Savannah

The Sudan Savannah zone of Nigeria is hugely characterized by a long dry season and moderate soil fertility. States like Cross River, Enugu, Akwa-Ibom, etc., fall under this agroecological category. The common soil type here is sandy, with low water retention and fertility. Crops like cotton and sugarcane thrive well.

Rainforest Zone

The rainforest zone of Nigeria covers states like Oyo, Ogun, Osun, Ekiti, Akwa-Ibom, Bayelsa, Cross River, etc. This zone is characterized by high rainfall and soil types such as loam and clay. Commonly grown crops in this zone are oil palm, rubber, yam, maize, cassava, etc.

Mangrove Swamp Zone

The mangrove swamp zone of Nigeria covers states such as Lagos, Cross River, and Bayelsa. This zone is characterized by even higher rainfall with soil types including loam, clay, and sandy. Commonly grown crops are oil palm, rubber, and mangrove species.

Freshwater Swamp Zone

Nigeria’s freshwater zone is characterized by high rainfall and soil types such as sandy, loam, and clay. Commonly grown crops are oil palm, rubber, rice, and yam. Commercial fishing and fish farming ponds are suitable in this area.

Sahel Savannah 

The Sahel Savannah zone of Nigeria covers states such as Kebbi and Niger. This zone is characterized by low rainfall dry season with soil types including sandy and loam. Commonly grown crops in this area are millet, sorghum, yam, maize, etc.

This variation can adapt farming practices to suit each zone, allowing optimal crop yields and success in each region. The soil organic matter content differs widely between regions, with some areas having relatively higher nitrogen content, making it well suited to farming. In contrast, other areas are generally not fertile land.

In addition, these variations pose a challenge to farmers as they must ensure their farming techniques consider the type of soil they have access to. Despite this potential challenge, Nigeria’s various agro-climatic zones provide farmers with a wide range of cropping systems that enable them to choose the best fit for their location and get the most out of their farming efforts.

Factors to Consider Before Buying Land

For those considering purchasing arable land, there are numerous factors to consider before making a decision, such as:

Location

You should also evaluate proximity to major urban areas regarding potential future development concerns. For example, if considering an agricultural investment in Nigeria’s two major urban areas, Abuja and Lagos, states such as Niger or Ogun near it could prove fruitful in the long run.

Size

The size of the agricultural property is an essential consideration for what type of farming you wish to undertake, as this will determine the acreage needed. It is also key to inspect the condition of the arable land, such as soil fertility and water availability.

Property Conditions

You must consider any existing structure or features on the agricultural property concerning development plans. In addition, conducting soil tests will ensure you know the quality of the land and the type of farm inputs you may require during production.

Price

Researching to determine the current market prices can help you ensure that you pay a reasonable price for the agricultural property.

Security

It’s important to ascertain the security measures taken by the area, such as protection from theft and other potential legal issues, to guarantee peace of mind.

Legal Considerations

You must ensure all legal documents related to the land tenure system are in order and legally binding before purchasing. This legal document will help to safeguard you from any complications that may arise in the future.

Ownership

You must verify the right of the land with relevant documentation and with your lawyer before securing the property. All documentation should also include a survey plan, which clearly shows the boundaries of the land being purchased.

How to Acquire Farmlands in Nigeria

Individual

The most common is from individuals who own the land and wish to sell it for agriculture. The owner might get the land through inheritance or as a gift from a friend/family.

Estate Agents

Real estate agents are a great source of information when buying land for agricultural purposes. They can advise on the land’s size, location, and condition. 

Government Parastatals

In Nigeria, governments have created parastatals such as NALDA and the ministry of agriculture for acquiring agricultural lands for individuals or foreign companies. These firms can provide advice on how to acquire land as well as provide access to financial resources. 

Government/Local Government Authority

The government and local government authorities usually have farmlands that they sell to individuals for agricultural purposes. The land’s price should be reasonable; in some cases, they can assist with legal documents such as a survey plan and certificate of occupancy.

For example, the Ogun Osun River Basin Development Authority (OORBDA) is a government organization that assists in buying and leasing agricultural land for agricultural purposes. In addition, the State government always calls on Nigerians interested in farming to come and buy acres of farmland at a reduced cost.

Local governments also offer land for sale from time to time. You can approach the relevant authorities in your area to inquire about available lands for sale.

Private Companies

Private companies/agricultural companies also have land for sale and can provide more complex legal documents and assistance with necessary permits. The cost of these lands is usually higher than those from individuals or government/local government authorities.

Village/Town Monarchs

The village kings are the best way to get land for agricultural purposes. You can buy acres of farmland/parcels of land that can be used for food production. They usually have lands for sale at a low price in the village, and you can approach them to inquire about buying land. 

What to do After Buying Land for Agricultural Purposes

After getting land from any of the sources mentioned above, there are a few things to put in place:

Get a Certificate of Occupancy

You need to get all the necessary documents to prove your ownership of land. One of the documents includes a Certificate of Occupancy or Deed of Assignment. This document is an important document that is used to safeguard against any potential disputes in the future.

It helps secure your rights on the land and makes it easier to get credit facilities from banks or other financial institutions.

Do a Land survey

Having the land surveyed by a qualified individual or institution is important. Most times, during buying of lands, there are discrepancies in the land size due to boundary disputes and other forms of fraud. A land survey will help identify such discrepancies and help to protect your right on the land.

Site Clearance

Removing all existing shrubs, trees, and other vegetation on the land is very important before commencing any agricultural activities. Site clearance will ensure that the land you acquired is fit for farming purposes.

Build a Fence

Protecting a fence around the land is important against theft, invasion, and other vandalism.

Draw a Farm Plan

You must draw a detailed farm plan before commencing its usage for agricultural purposes. This farm plan will help with knowing what activities you want to do on the land and serve as a guide for crop rotation, considering the area’s climate.

Get an Expert

Getting an expert in this field to help with this process is also advisable, as they are more knowledgeable about it than you are. An expert can help you develop the land and advise on the best farming activity for your land.

The 5 Benefits of Buying Land for Agricultural Purposes

These are the benefit of buying land for the agricultural purpose taking into consideration the Nigeria government’s reform of the agricultural sector: 

Financial Security

Buying land for agricultural purposes can bring financial security to individuals and families who invest in it. Agricultural land is a great way to generate income and certain assets and increase wealth through capital appreciation.

Food Security

Having access to land for agricultural activities, you can produce your food and become self-sufficient. With the Nigerian government reforms of the agricultural sector, farmers can now access high-quality seeds at affordable prices, improved farming technologies, and financial support, which will help to eradicate food insecurity.

Job Creation

Buying land for agricultural activities also helps with job creation, as there is a need for more labor to cultivate and maintain the land. If acquired in a rural area, many people in the rural area will get employment opportunities, leading to economic growth and livelihood security.

Increased Income

Investing in land for agricultural purposes can increase income as you can produce more crops for agricultural export or livestock, which you can sell at a higher price than before. The Nigerian government reforms of the agricultural sector have made it easier for farmers to access valuable resources needed to grow and sell more.

 Loans Facilities for Agricultural Land in Nigerian Banks

Many Nigerian banks now offer real estate loan packages to cover the cost of purchasing agricultural land. This application process is part of their current business relief initiatives and makes it easier for commercial purposes in the real estate market.

These loans may be ideal for those wishing to expand their farming practices or start a new farm business. These loans’ application processes and terms vary between banks, providing individuals with various options for financing their agricultural land goals.

The following are the list of some banks that gives agricultural loan:

• Nirsal Microfinance Bank
• Bank of Agriculture
• Sterling Bank
• First City Monument Bank (FCMB)
• Polaris Bank

Exploring the Top 5 Agricultural Grants Available in Nigeria

Grants are a great way to obtain additional funding for various agricultural development or business relief needs. A land grant is a type of government grant where investors and applicants receive funding from the government to use it for commercial purposes, such as buying land or starting an agricultural business.

An application process will generally be required when applying for these agricultural grants and must accompany strict requirements set by governing bodies to approve them. It’s always important to thoroughly research any grant application to ensure you meet all criteria before submitting.

The following are the list of governing bodies or agricultural organization that gives agricultural grants:

Central Bank of  Nigeria

Central Bank of Nigeria Agri-Business/Small and Medium Enterprises Investment Scheme

The Central Bank of Nigeria Agribusiness/Small and Medium Enterprises Investment Scheme (CBN AGSMEIS) offers grants to agri-businesses who need start-up or expansion project funding. 

This grant program provides access to funds at a reduced interest rate, making it an attractive option for agricultural investors.

Nigerian Export-Import Bank (NEXIM)

The Nigerian Export-Import Bank offers a range of programs that provide funding to individuals or companies looking to start businesses in the agricultural sector. It includes the NEXIM Agro Master Class, which grants up to N50 million without collateral.

Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL)

NIRSAL provides grants to agribusinesses looking to start, expand or modernize their operations. They also offer loans with no collateral and low-interest rates. NIRSAL has supported the agricultural industry in Nigeria since 2015 and has provided funding to more than 8,000 projects across the country.

Women-in-Agriculture Programme (WAP)

The Women-in-Agriculture Programme grants up to N500,000 to female entrepreneurs looking to start or expand an agricultural business. This grant is specifically for women business owners, as it looks to empower and support female entrepreneurs in the agriculture sector.

Federal Ministry of Agriculture and Rural Development (FMARD)

The FMARD is a key player in providing grants to agribusinesses nationwide. They provide grant funding through partnerships with private sector organizations, such as agro-processing companies, to fund start-up projects or business expansion.

Frequently Asked Questions

Wrap Up

Successfully buying land for agricultural purposes requires research, due diligence, and knowledge of essential factors. Before investing, you must assess the temperature, rainfall, soil composition, size, and other value-adding elements, such as the convenience of nearby resources, before getting all necessary documents, such as a Certificate of Occupancy or Deed of Assignment. 

By investing with caution and considering all necessary points diligently into account, you can generate income steadily by growing crops, as well as certain assets, through capital appreciation over time. 

The key is to scout potential lands wisely depending on your needs and avail yourself of different sources, including individuals, estate agents, government agencies, local government authorities, and private companies. With this information, there’s no reason why you can’t start building a legacy through land ownership today!