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Farmer's status (agri saat baara, 7/12)

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Farmer's status (agri saat baara, 7/12)

Last updated: November 21 2017
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  • Farmer's status (agri saat baara, 7/12)

    Hi,

    Over the past few months of my travels in the distant interiors of Maharashtra (distant = not more than 60 kms from Pune station), I have come across really wealthy "farmers".

    Also, I have come across many "farmers" buying / owning land & then becoming builders / JV partners.

    My reason to start this thread is to understand if having a farmer's status is really beneficial...in the long term.

    The points that come to my mind about the benefits (direct / indirect) are:

    1) You can buy agri land
    2) Income from that land is tax free
    3) You can sell that land without fear of long / short term capital gains
    4) Farming loans are at lower rates of interest ( & at the end you get your loans waived )
    5) Lower rates for electricity
    6) If farm is outside PMC area, then no octroi for cars purchased


    If any of you can add to the above, it would be a great cerebral exercise in understanding what we "urbanites" are missing.

    Cheers!
  • #2

    #2

    Re : Farmer's status (agri saat baara, 7/12)

    1) You can buy agri land
    Only if you are farmer. Remember the case of Amitabh Bachchan.

    2) Income from that land is tax free
    You will get very less/negligible income.

    3) You can sell that land without fear of long / short term capital gains
    Agreed.

    4) Farming loans are at lower rates of interest ( & at the end you get your loans waived )
    Hardly you will get loan of Rs 50,000 per Acre. And for purchasing 1 Acre land you will need more than Rs 40,00,000.

    5) Lower rates for electricity
    You will hardly get electricity, around 6 to 8 hours in 3 to 4 slots.


    If you are planning for long term investment then your idea is not bad, but don't think about direct benefits.

    Comment

    • #3

      #3

      Re : Farmer's status (agri saat baara, 7/12)

      Originally posted by Karan Dheer View Post
      Hi,

      Over the past few months of my travels in the distant interiors of Maharashtra (distant = not more than 60 kms from Pune station), I have come across really wealthy "farmers".

      Also, I have come across many "farmers" buying / owning land & then becoming builders / JV partners.

      My reason to start this thread is to understand if having a farmer's status is really beneficial...in the long term.

      The points that come to my mind about the benefits (direct / indirect) are:

      1) You can buy agri land
      2) Income from that land is tax free
      3) You can sell that land without fear of long / short term capital gains
      4) Farming loans are at lower rates of interest ( & at the end you get your loans waived )
      5) Lower rates for electricity
      6) If farm is outside PMC area, then no octroi for cars purchased


      If any of you can add to the above, it would be a great cerebral exercise in understanding what we "urbanites" are missing.

      Cheers!
      You cannot buy agri land unless you're a farmer is the first rule .
      There is a certain calculation for agri income and everything is not free .

      Laws were made for benefits of farmers because mostly land was non-irrigated and income from land was meagre .

      Now , the next generation of farmers that you found wealthy are people who are inherting the land and dont have interest in cultivation .
      Easiest way for them is to sell/develop the land and make money .
      This leads to the unfortunate consequence that the land which was fertile and producing crop is now lost to speculation . So net effect is food production drops down , food inflation increases and yes , the wealthy farmer is also now a customer for a mall . All in all , a big lose lose situation for all except for speculators .

      Comment

      • #4

        #4

        Re : Farmer's status (agri saat baara, 7/12)

        Originally posted by suryawork View Post
        You cannot buy agri land unless you're a farmer is the first rule
        As mentioned by Karan if the buyer has 'farmers status' which means if father/grandfather has agri land in their name. The buyer himself doesnt have to be actual farmer.

        Comment

        • #5

          #5

          Re : Farmer's status (agri saat baara, 7/12)

          Guntawari / Tukdabandi Act

          Originally posted by Karan Dheer View Post
          Hi,

          Over the past few months of my travels in the distant interiors of Maharashtra (distant = not more than 60 kms from Pune station), I have come across really wealthy "farmers".

          Also, I have come across many "farmers" buying / owning land & then becoming builders / JV partners.

          My reason to start this thread is to understand if having a farmer's status is really beneficial...in the long term.

          The points that come to my mind about the benefits (direct / indirect) are:

          1) You can buy agri land
          2) Income from that land is tax free
          3) You can sell that land without fear of long / short term capital gains
          4) Farming loans are at lower rates of interest ( & at the end you get your loans waived )
          5) Lower rates for electricity
          6) If farm is outside PMC area, then no octroi for cars purchased


          If any of you can add to the above, it would be a great cerebral exercise in understanding what we "urbanites" are missing.

          Cheers!

          My only worry is the guntawari/tukda bandi act.. though most of the developers have sold thousands of such 2 gunta plots. Some advocate says the clause is applicable only where the plot is grouped under 'gut number' and not 'survery number'. However im not sure of the actual clause, and want some genuine information on this.

          Please let me know if you are aware of this act.

          Comment

          • #6

            #6

            Re : Farmer's status (agri saat baara, 7/12)

            One more advantage that our farmer friends will have over us urban folks:

            The new land bill provisions 4x compensation for land acquired from farmers. I would have not raised an eyebrow if this rule had come in 6-7 years back..coz that time the difference between ready reckoner rates & actual transaction rates were high.

            In the current scenario, the actual transaction rates are only about 1.5x the RR rates. This is a financial windfall for our farmers! Enjoy all perks, pay no electricity bill, get produce sold at fixed rates & now 4x rate for land acquired!

            Gosh..I wish I had a farmer's status & bought some agri land somewhere...anywhere.

            On the flip side, this bill is surely going to raise the farm land rates...especially within the 50 km radius of Pune.

            Cheers!

            Comment

            • #7

              #7

              Re : Farmer's status (agri saat baara, 7/12)

              Sunny side up!!!

              1)To buy farmland you need to be a farmer, if your parents are not farmers then there are many ways to become a farmer.
              2)Every CITY on its periphery of 100 k.m. has rich farmers because the city is ready market for their farm produce. Those who have been able to predict demand have made bigtime money;3 years back some made as high as Rs one crore per hectare from ginger harvest similar windfall when onion touched Rs 80/kg. As city grows their land comes in demand they sell and move more outwards or some become Developers themselves.
              3)Farm Land held for more than 3 years and is 8 km from city limit dose not attract any tax upon sale.
              4)You get cheaper loans(80% of market value of land), subsidies(for construction of Well, toilets etc), waive offs(in election years), Schemes(Green House,Horticulture etc), electricity at very lower rates, can construct a small house without getting NA, no octroi in rural area, no income tax etc etc...
              Last edited April 20 2013, 02:36 AM.

              Comment

              • #8

                #8

                Re : Farmer's status (agri saat baara, 7/12)

                Originally posted by anildc View Post
                1)To buy farmland you need to be a farmer, if your parents are not farmers then there are many ways to become a farmer.
                .
                Can you please explain how this is done? If it is shady in nature...then I am not keen to know.

                If legit..then pls explain.

                Comment

                • #9

                  #9

                  Re : Farmer's status (agri saat baara, 7/12)

                  Originally posted by Karan Dheer View Post
                  Also, I have come across many "farmers" buying / owning land & then becoming builders / JV partners.
                  Technically, these are not farmers but son/grandsons of farmers. And not all have become builder or partner but yes, many have. This however, depends upon the location of the land as well.

                  The points that come to my mind about the benefits (direct / indirect) are:

                  1) You can buy agri land
                  Yes.

                  2) Income from that land is tax free
                  Only if farming is the sole thing which you do for earning. If you are earning from somewhere else, then you fall in the same tax bracket, so literally no direct benefits if you have multiple source of income. The only way to avoid this is by having agri income under HUF account. But if you are not Hindu, then you don't get this benefit either.

                  3) You can sell that land without fear of long / short term capital gains
                  Yes.

                  4) Farming loans are at lower rates of interest ( & at the end you get your loans waived )
                  Farming loans are at lower rates but is difficult to get one at first place.
                  And most of waiver goes in pockets of ministers & not farmers.

                  5) Lower rates for electricity
                  Only at the place where farm is there. You don't get lower electricity bills if you are farmer & staying in a flat in PMC/PCMC limits.

                  6) If farm is outside PMC area, then no octroi for cars purchased
                  Octroi is abolished from 1st April this year. Lets see what happens if LBT comes into place.
                  If you are happy, you are successful.

                  Comment

                  • #10

                    #10

                    Re : Farmer's status (agri saat baara, 7/12)

                    Pretty old thread but still closest to my query and hence it is here.

                    My father's name is ona 7 12 extract as minor. Since he wasn;t aware of it, he never got it done as major and the latest 7 12 still shows him to have A Pa K (Adnyan palan karta) He passed away few years back in his 70s.

                    If any one is lawyer on the forum specialised in getting farmland regulations, can I have some guidance on how to proceed from here on.

                    There is no will, we do not cultivate the land and there is no KUL.

                    The place is far away. I have 2 independent sisters and mom is dependent.

                    I guess just with this 7 12, I can not be declared a farmer and would need a 7 12 entry of my name to be able to deal in farm land.

                    Thanks in advance.

                    Comment

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