A FRIEND of ours discovered for himself a new agribusiness idea by developing new land into some kind of a model farm and then selling the same at a big profit.
INNOCENTLY – It all started innocently. Our friend is in the mining business in Bicol, but he spends most of his time in his Manila office. He is a prosperous businessman, but having come from the province, he is also a farmer at heart.
HE YEARNED – Several years back, he yearned to have a farm of his own to which he could go during weekends to unwind and commune with Mother Earth. He got himself a few hectares in Tanay, Rizal, which could be reached from his Quezon City home in just an hour.
CHEAP LAND – Gus, that’s his nickname, bought the property cheap because there was practically no development. He bought it from a politician who had lots of landholdings. What’s nice with the property was that it hUSUAL FRUITS – ad a live spring.
USUAL FRUITS – Gus planted some citrus trees, mango, jackfruit and other traditional fruits. He developed a small fishpond which he stocked with tilapia. And he had also put up a small but beautiful farm house with all the amenities of modern living since it has electricity.
PROUD OF FARM – Our friend was, of course, very proud of his farm. He spent a lot of time developing it and loved to show it to his colleagues from the Rotary Club and other organizations. One night he received a phone call from one of his visitors the day before. The caller, a garment manufacturer who was making a lot of money, told Gus he felt in love with the farm, and would he sell it to him?
TAKEN ABACK –– Gus was taken by surprise. He had no intention to part with it because he had devoted so much of his time developing it. Besides, his family enjoys spending weekends in the property. But his friend’s offer was also too tempting to ignore. You see, the caller told Gus that he could name his price.
HIGH QUOTE – To discourage the caller from pursuing his intentions, Gus intentionally mentioned a very high price. “I don’t really want to sell the farm,” Gus told him. “But if ever I will sell it, it would be for no less than P3 million.” Gus figured out that he must have spent no more than P800,000 for the whole thing. He got the three hectares for only P120,000 and the improvements could have cost him no more than P600,000.
SURPRISED! – To his surprise, the caller said he was willing to pay him P3 million. This has opened his eyes to a new agribusiness opportunity. Gus is now convinced that developing undeveloped lands into something productive could be a good business.
NEW PLAN – He was telling me of his plan to buy some brushlands in Baras, Rizal, or some other nearby areas. He is now figuring out that one-hectare farms could be easier to develop and to sell to other businessmen who are looking for weekend farms of their own.