Wednesday, 16 March 2016

CASHEW AS THE BEST PENSION PLAN



Earning 400,000 naira monthly without having to lift a finger is not just a fantasy but a reality. There are several pension plan but let’s consider a professional due for retirement in seven years then gets a loan or a savings of 4million naira.
One of the quickest things that comes to mind is real estate, starting a transport business, maybe buying stocks and a host of others. It may never occur to such a person to consider the profitable sides of agriculture.

Let me show you why agriculture and most especially cashew is your best pension plan:
1)      With four million, you can own 20 acres of cashew plantation
2)      Cashew tree can last as long as 25 to 40years or more and before 25years you can re-cultivate to ensure continuity for generations.
3)      This 20 acres is another collateral on its own.
4)      In the first two years of cashew plantation, it can be intercropped with other crops with profits being reinvested in more cashew plantation.
5)      With best practices agriculture, intercropping can make you break even in just two years
6)      In the first year of fruiting, at least 30% of your investment will return to you
7)      By the third year of fruiting i.e. sixth year of cultivation, you would have made all you invested sum.
8)       Amazingly, an acre of cashew plantation cost between 20,000 and 25,000 naira to maintain annually.
9)      By the fifth fruiting year, an acre of cashew is capable of yielding 1ton of raw cashew nut i.e. 20 acres will yield 20tons
10)   The average price of a ton is 240,000naira
11)   This means 4,800,000naira is realistic i.e. 400,000naira monthly in the fifth fruiting year which on the 7th year of cultivation
12)   All this returns are within 10years of cultivation and this jut the average yield.
13)   The older a cashew tree gets the more it yields.
14)   Remember because of the intercropping that is possible in the first two years, you can use your yield on it to get more cashew plantation.


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