Farm Venture; How to apply Joint Venture Strategies to Farming

Food is basic need and it is one of the top in the hierarchy of human needs. We consume food everyday' 3 to even 6 times a day. Thus, food farming is always a promising business. There is wealth in farming if managed and marketed well. Look at Vietnam. The country now has grown to be a significant U.S. food producer since the American soldiers left. It has produced many Vietnamese food entrepreneurs. In fact, it has exponentially grown with an 8.5 gross domestic product (GDP), an economic rate better than China and India.

From rice to vegetables, farming could offer a vast opportunity including small joint venture. Farming joint ventures could range from leasing your land to a big food company to food marketing partnership and simply, food production and supply partnership.

What is gaining popularity in farming is capital ventures, where you just lend an amount of money to a farmer to fund his/her food production. The joint venture will ensure continued food production, as long as funding and market continue.

Before lending the money, you should first study the market of the food produced. Does the food has a guaranteed market even after 5 years? How large is the demand for the produced food? Does the whole market system provide a good and lasting opportunity like has the government provided a law that requires production of a particular food as an ingredient for processed foods? Or does the market system is in dire need of production of a particular food because supplies are shortening?

Second, check the food production itself to see the viability of meeting the market demand. How many can be produced? As a more responsible joint venture partner, you may include checking its viability to environmental, health of consumers and life of the farmer. Does the food production use the traditional and inorganic pesticides and fertilizers? Does the production waste a lot of water? Does the production is in an environmentally-critical area like watershed area? Does the production earn a farmer a quality life?

Third, calculate the potential and after-production revenue and agree specifically on a revenue-sharing scheme. The scheme can solely depend on the size of capital lent to the food production. Carefully put the joint venture agreement into writing for legal purposes.

Lastly, lend the money.

Here's to your Success!

Rivers

"Award Winning Entrepreneur, and Joint Venture Specialist, Rivers Corbett offers an opportunity to a limited number of entrepreneurs who are looking to steer clear of the typical ''Get Rich Quick'' hype. Click on http://myinternetbiz.ca for more information.