Buying Farmland in IndiaPrefaceInvesting in real estate has always been a profitable avenue for investors who want to see their money grow manifold. But with the recent stagnation in real estate prices there has been a negative effect on the real estate market of traditional properties such as apartments, offices etc. In this scenario, one area that is seeing gradual demand is agricultural land. According to experts, agricultural land has always been easy to use and is not an expensive means of investing in real estate. On top of that you have various advantages such as various tax exemptions which make the option of investing your money at any given time even more sensible. Although agricultural land is a trending property nowadays, investors should take care of the various policies and other issues related to these properties as purchasing agricultural land is slightly different from purchasing a traditional property. What qualifies land as agricultural land To be included In simple terms, agricultural land is land on which agriculture is practiced, that is, land on which the production of food for human or animal consumption or for fuel purposes (such as wood) and pharmaceutical products (medicinal plants). According to the World Bank, in 2011 60.47% of land was defined as agricultural land, so there are many opportunities available to buy agricultural land from people who already own it or want to sell it Types of agricultural land Generally there are two types of agricultural lands in India • Wet lands (arable lands) - Wet lands are intended only for cultivation • Dry lands (non-arable lands) - Dry lands are mostly rocky and are not suitable for cultivation. • Private property: This type is f. ..... half of the paper ...... sale of land is prohibited by the State Government. for any reason mentioned above; and purchase only with prior approval from the state government tax authority. • Confirm and verify that the ownership of the land so purchased is transferred in the Land Rights Register or Extract 7/12 (if applicable) and the mutation entries are recorded in Extract 6/12 (if applicable) in your favor. • Don't build a farm without permission. Use the soil for the purposes mentioned above. • Collect/obtain the KHATE BOOK from Talathi and update it every year. • Obtain a new Land Rights Register extract every six months/year and check for any encumbrances. • Pay farmland revenue to Talathi Company every year and get payment receipt. • Visit/stay on site at least once a month and monitor the progress and improvement of cultivation.