Another friend may learn this lesson soon. He's planted thousands of coconut trees in Panama because coconuts have become a hot commodity for both their oil and their water. He made the investment in the plantings, though, before he had pinned down a sales outlet, and now he's scrambling to find a buyer. Probably he'll be able to sell his crops locally, but the local price won't get him the profits he projected based on international market values. I'm in the process of planting timber and fruit trees on 10 acres I own in Belize. My first question to the agriculture guy who's going to manage the work was, What can we sell easily locally? I know that the volume of production from the mixed trees I plant on my relatively small piece of land won't be enough to sell for export. Therefore, I want to grow things that the locals need and buy. The guy I'm working with recommended a couple of hardwood trees that few outside Belize have heard of but that are sought-after for local home building and wood working. It will be 15 to 25 years before these trees are ready for harvest, though, so I've got to bet that current demand won't shift over the next couple of decades. If it does, the trees still will have value as hardwoods, but the returns will be less than we're projecting now. For the fruit trees, again I'm going with what can be easily sold locally—avocados, bread fruit, bananas, and a few others. Once you're sure you have an outlet for where to sell your produce, then, unless you're interested in doing the farming yourself, you need an "operator," as one colleague with many agricultural undertakings calls the guys who do the work on the ground. Finding an operator can be easy enough in countries with an agricultural base. When this is the case, you'll find many companies in the business of running farms for people. Your challenge will be to identify one who has experience with your planned crop who you can also trust. My 10 acres in Belize won't throw off the same annual yields as a focused farm, but that's not the point with this land. This is more a personal experiment than a serious investment, and we intend to build a house here, too. Still, I'd say that planting trees is a good idea under any circumstances. As a friend who shares this perspective likes to say, if you need the income in 10 or 15 years, you'll be happy you planted the trees...and if you don't ever need the income, you'll be happy you planted the trees. Meanwhile, I'm researching pecans. Lief Simon
Our friend who took Lief to see King's Children's Home, as it's called, has been helping the group out. Crew from his development project nearby has built a playground, and now they're creating aero-ponic and hydro-ponic growing systems. They're going to train the older kids on farming techniques so the children can grow food for the orphanage and also to give them skills they can hopefully use to get jobs when they leave and go off on their own. The orphanage has 40 acres to work with, which our friends think is enough, once the systems are in place and fully operational, to make the facility self-sufficient for food. The monthly operating expenses are $18,000, and the group receives no financial support from the government or any organized charity. The facility is run by volunteers. All donations go toward food, clothing, and medical care for the kids. Making the place food-independent will mean a lot more money for other things, including education. Lief was so impressed with what's going on here that I thought I'd share it with you in case you have any interest in becoming involved. The orphanage has a website, here, with information on volunteering and making a donation. Kathleen Peddicord
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Kathleen Peddicord is the founder of the Live and Invest Overseas publishing group. With more than 25 years experience covering this beat, Kathleen reports daily on current opportunities for living, retiring, and investing overseas in her free e-letter.
Her book, How To Retire Overseas—Everything You Need To Know To Live Well Abroad For Less, was recently released by Penguin Books.
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