Long gestation and low rate of turnover
•It takes a relatively longer period of time for investment in agricultural enterprises to yield benefits than in many non-agricultural enterprises.
•For example, It takes three to four months for most crops to mature, four to six years to raise a young buffalo calf to a stage when she starts yielding milk and five to 10 years before fruit saplings start bearing fruits.
•The annual flow of net returns from investment in most agricultural enterprises is also low. This results in a low rate of turnoverit takes longer to recover the investment made.