Agrisethu Agricultural Land Lease Pricing Framework

Transparent, fair, and intelligence-driven land leasing

Why Agrisethu Uses a Structured Model

Agricultural land leasing has traditionally relied on informal negotiation, which often leads to inconsistency, disputes, and economic stress. Agrisethu has implemented a structured, data-driven lease pricing framework to ensure fairness, sustainability, and transparency.

When Is the Lease Price Determined?

Lease pricing is determined before the farming season begins, prior to land preparation and sowing. At this stage, actual yield is unknown.

Therefore, Agrisethu prices land based on land potential, market reality, and risk—not post-harvest outcomes.

Key Factors Considered

Factor Options Considered Value Range Why It Matters
Irrigation & Water Canal, Borewell, Rain-fed 0.70 – 1.20 Determines yield stability and crop cycles
Soil Quality Black, Red loam, Mixed, Sandy 0.75 – 1.20 Affects productivity and input cost
Crop Suitability Cash crops, Food crops, Limited 0.70 – 1.20 Defines income potential of the land
Market Access Distance & road quality 0.80 – 1.10 Impacts logistics cost and price realization
Overall Risk Climate, social, price risk 0.85 – 1.00 Protects against uncertainty

Attribute Values Explained

Condition Multiplier Interpretation
Assured irrigation & premium soil 1.15 – 1.20 High productivity, low risk
Average irrigated land 0.95 – 1.05 Stable, market-aligned
Rain-fed or limited crops 0.70 – 0.85 Higher dependency on climate

How the Lease Is Calculated (Conceptually)

Agrisethu follows a two-stage pricing logic.

Stage 1 – Market-Adjusted Lease
Base Market Rate × Land Attribute Score × Risk Adjustment
Stage 2 – Safety Validation
Final lease is capped to ensure it does not exceed a safe percentage of expected crop value or profit.

The final lease value selected is always the most conservative and sustainable option.

Intelligence Behind the Framework

Why This Model Is Best for Agrisethu

Fair & Transparent

No hidden negotiations or arbitrary pricing.

Risk-Aware

Built to handle climate and market uncertainty.

Scalable & Professional

Works across districts, crops, and seasons.