Demand for farmlands spikes on govt’s agric campaign, economic downturn

Demand for farmlands has increased considerably, driven by government’s heightened campaign on agriculture, as well as the economic downturn which is causing many Nigerians to turn to enterprises requiring minimal imported input, which present high end user demand.

It is also a fall-out of people’s response to the massive job losses attending the downturn in the economy.

This is arousing  interest from real estate agents who are veering into the marketing of  farmlands in the up-country, which is a far cry from their city-centre residential and office space comfort zones.

Industry sources add that this move is also an effort by the realtors to develop multiple streams of income as the economic recession hits the real estate sector.

Industry watchers further contend that marketing the hinterland farm-space is particularly rewarding to the realtors because a good number of recent agricultural start-ups are run mainly by young, educated city-dweller entrepreneurs who are disconnected from the hinterland and need support to chart the course.

“But this is not an entirely new development for us as professional real estate agents. What is rather new, is the heightened enquires from clients who need land for agricultural purposes”, said Paul Ojenagbo, an estate surveyor and valuer, in a telephone interview.

Ojenagbo explained that he and his colleagues in  estate surveying and valuation, have been marketing farmlands as agriculture properties, adding that they are also involved in the valuation of of impacted farmlands such farmlands devastated by flooding or oil spill before they are marketed.

“Everything that has to with land is our business”, adds Samuel Ukpong, also an estate surveyor and valuer. Ukpong stresses that they are the only land economists among professionals in the built environment.

“Veering into farmland marketing, I agree, is in the line of the various strategies a lot of us are adopting to increase our income streams, but essentially, it is part of what we do as professionals in the real estate agency practice. We market and value land for whatever purposes it is meant”, Ojenagbo posited.

Nigeria’s economy fell to a 25-year low in 2016, after oil revenues collapsed and officials have picked unwavering interest in the agricultural sector as the country attempts revenue diversification. This brought about government’s renewed commitment to the sector, as agriculture has long been touted as the most viable contingency plan for economic diversification.

Experts say this renewed interest may be the reason for the zeal which young people and professionals are bringing into the sector.

Several farmers confirmed to our reporter that quite a number of these agents are into farmland or agriculture property marketing, having bought their farmlands from them (the agents). “I know a couple of farmers that got their farmlands from real estate agents”, AfricanFarmer Mogaji, CEO, X-Ray Farms Consulting, said in response to a telephone question.

Mogaji noted, however, that “these agents lack adequate agric knowledge and so they mostly deal with assumptions and projections in land selection for crop production,” and urged real estate firms to train their staff in agriculture and agribusiness, so as to identify lands that are good for crop production.

Abiodun Olorundenro, chief executive officer, Green Vine Farms, agrees,  stressing that the sale of farming estate by real estate agents has increased tremendously in recent years, owing to government’s renewed commitment to agriculture. It has helped a lot of agro entrepreneurs secure lands that are genuine for their businesses.

“The issue right now with such lands, is inadequate security, as most of the lands are located in remote areas which are very far from residential areas. The real estate firms need to start ensuring that there is security on those farmlands, as this would increase patronage from potential farmers”, he advised.

Olorundenro revealed that his farmland which he secured from a real estate agent located in Ogun state has been attacked twice by kidnappers. He stressed the need for the real estate firms to work in partnership with security agents in the country to ensure maximum security for farmers at farmlands.

“There has been a high rate of kidnapping and attacks on farmers and farmlands across the country by herdsmen, especially in the middle belt region”, he said.

 

CHUKA UROKO & JOSEPHINE OKOJIE