Question

Investors are now looking at farmland as a long-term

investment. …………………………………………………….For one, the cost of land in rural areas is typically lower compared to urban areas. Two, land is usually seen as a safe investment as prices appreciate over time, especially with infrastructure improvements. Three, unlike a residential plot of land, you may be able to generate income from the farm. Food prices tend to keep up with inflation and farm income can be an inflation hedge. In each of these questions, a paragraph is given that has blank in it. Five sentences (1), (2), (3), (4) and (5) are suggested. Out of these, only one fits the blank in the context of the paragraph. Pick that sentence as the answer.

A A positive pay-off for many people in owning a farm is access to quality produce.

B This assumes significance given the concerns around usage of chemical fertilisers and pesticides.

C Income from agriculture is exempt from income tax and the capital gains from rural land may also qualify for tax exemption.

D The attractions for investing in a farm could be many.

E None of these

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