India’s agricultural sector is the bedrock of its economy, showcasing incredible resilience even during challenging economic times. While the broader economy faced contractions, agriculture often demonstrated positive growth, proving its potential as a stable and rewarding field.
But farming today is evolving. It’s no longer just about subsistence; it’s about agribusiness. This means focusing on profitability, maximizing returns, adding value, and even exploring export markets. If you own or manage a medium to large-sized farm (5 acres or more) in India, you’re sitting on significant potential. Your scale is your advantage – it allows for diversification, adoption of modern technology, and exploration of ventures often out of reach for smaller plots.
This comprehensive guide will walk you through the most profitable and sustainable ventures you can undertake on your 5+ acre farm in India. Let’s unlock the full potential of your land!
1. Why Focus on Medium to Large Farms (5+ Acres)? The Advantage of Scale
Farms with 5 acres or more offer unique opportunities:
- Economies of Scale: Investing in machinery, infrastructure, and technology becomes more cost-effective.
- Diversification: You have the space to cultivate multiple crops, raise different types of livestock, or even integrate activities like processing or tourism, reducing reliance on a single income source.
- Technology Adoption: Larger areas make modern techniques like precision irrigation, drone monitoring, or setting up processing units more feasible and impactful.
- Resource Optimization: Land can be strategically allocated for cultivation, fodder production, livestock housing, processing units, and even renewable energy generation.
This scale empowers you to think bigger and implement strategies for significant, sustainable profits.
2. How to Cultivate High-Profit Crops: Beyond Traditional Farming
Moving beyond traditional staple crops towards high-value alternatives can dramatically increase your income, potentially generating anywhere from ₹6 lakh to ₹30 lakh per acre annually, depending on the crop, market demand, climate suitability, and your cultivation practices. Careful selection and management are key.
Here’s a look at some top contenders:
2.1 Saffron (Kesar): The Golden Opportunity
- Why Consider It? One of the world’s most expensive spices, fetching ₹1.5 lakh to ₹3 lakh per kg. Growing demand, especially for high-quality, organic saffron.
- Ideal Conditions: Traditionally needs a cold climate (below 16°C during flowering), well-drained sandy loam or calcareous soil (pH 6-8), and altitudes of 1500-2800m. Found primarily in J&K, HP, Uttarakhand.
- The Modern Twist: Vertical farming, hydroponics, and aeroponics are making saffron cultivation possible outside traditional zones, even in controlled environments near urban centers (like successful examples in Maharashtra using aeroponics in small spaces). This offers potential for premium pricing due to freshness and quality control.
- Key Considerations: Labor-intensive harvesting requires precision. Controlled environment agriculture (CEA) requires investment but offers year-round potential and reduces weather dependency.
2.2 Avocado: The Superfood Surge
- Why Consider It? Exploding popularity among health-conscious urban consumers (“superfood” status). Significant export potential. Can fetch ₹300-₹400 per kg in metro markets. Potential income: ₹6 lakh – ₹12 lakh per acre.
- Ideal Conditions: Typically cooler climates (Nilgiris, parts of Karnataka, Kerala). However, heat-tolerant varieties (like ‘Fuerte’) combined with techniques like shade netting, proper irrigation, mulching, and organic fertilizers make cultivation feasible in warmer regions like North India. Requires well-drained soil.
- Key Considerations: Cultivation in India is still developing, offering early-mover advantages. Long lifespan (40-50 years) provides sustained income. Growing urban demand and export focus make it attractive.
2.3 Stevia: The Sweetener Solution
- Why Consider It? Rising demand due to health concerns (diabetes, obesity). Natural, low-calorie sugar substitute. Requires less water and inputs than crops like sugarcane. Strong export potential (global market projected at $1.13 Billion by 2028). Government subsidies available.
- Ideal Conditions: Thrives in various states (Punjab, Haryana, Maharashtra, Karnataka, Chhattisgarh, MP, AP, UP, J&K, HP, Uttarakhand). Prefers tropical/subtropical conditions, long day-length, sandy loam soil (pH 5.0-7.5), warm, sunny weather, and good drainage. Avoid heavy clay or saline soils.
- Key Considerations: Potential dry leaf yield of 3-3.5 tonnes/acre/year, fetching up to ₹300/kg (prices vary, some sources quote ₹500-₹1000/quintal). 5-year crop cycle with 4 harvests annually. Government support (NMPB, AYUSH, NHB) includes subsidies and soft loans for processing units, making it financially appealing.
2.4 Sandalwood: The Long-Term Investment
- Why Consider It? Extremely high long-term returns (potentially ₹1.2 crore – ₹1.5 crore per hectare over 15 years). Low maintenance once established. Consistent demand for its wood and oil.
- Ideal Conditions: Flourishes in moderate climates like Karnataka, which has supportive policies. Adaptable to various soils (red soil, black cotton soil mentioned in Karnataka context).
- Key Considerations: This is a long-term play (15-20 year rotation). Requires patience and the ability to wait for returns. Ideal for larger landholders seeking a high-value, low-maintenance investment over decades.
2.5 Organic Vegetable Farming: Meeting Conscious Consumer Demand
- Why Consider It? Booming demand for organic produce, especially near urban centers. Commands premium prices. Potential returns up to ₹30 lakh for a diversified organic farm (including crops, livestock, other income). Profit margins of 22-35%.
- Ideal Conditions: Requires fertile soil enriched with organic matter and a climate suitable for the chosen vegetables.
- Key Considerations: Needs adherence to organic certification standards. Proximity to urban markets is advantageous. Potential to diversify income streams on the same farm (livestock, farm tours, value-added products). Government support (e.g., in Karnataka) enhances profitability.
2.6 Horticulture: Exotic Fruits (Dragon Fruit, Kiwi, etc.)
- Why Consider It? High profit margins (3-5 times traditional crops). Growing urban demand for exotic tastes and health benefits. Potential earnings up to ₹1 lakh per acre annually (varies greatly by fruit).
- Ideal Conditions: Varies by fruit (e.g., Dragon Fruit thrives in Gujarat, Maharashtra). Generally requires well-drained soil. Avocado conditions mentioned previously.
- Key Considerations: Requires understanding specific cultivation needs for each fruit. Offers significant income boost due to premium pricing. Low maintenance and high demand noted for crops like Dragon Fruit.
2.7 Timber Plantations (Mahogany, Teak): Stable, Long-Horizon Returns
- Why Consider It? Long-term, stable income source. Minimal maintenance after establishment. Consistent high demand from construction and furniture industries.
- Ideal Conditions: Specific requirements vary but generally adaptable.
- Key Considerations: Similar to Sandalwood, this is a long-term investment (15-20 years). Suitable for large landholders seeking passive, long-horizon returns.
2.8 Other Profitable Crop Options to Explore:
- Fruits: Banana, Pomegranate, Grapes, Mango (Potential: ₹1 lakh – ₹3 lakh/acre).
- Spices: Chili, Turmeric, Ginger (High-value).
- Bamboo: Fast-growing, versatile (fuel, food, construction), low care, low plantation cost. Thrives in warm, humid climates and well-drained soils (pH 4.5-6.0). First harvest after ~6 years.
- Mushrooms: Quick returns, high demand (especially exotic varieties like Oyster, Shiitake). Can be grown indoors, utilizing organic waste. Requires controlled temperature (15-30°C) and humidity (80-90%).
- Herbs: Lavender, Basil, Rosemary, Ginseng, Lemongrass etc. Good for culinary sales, farmers’ markets, value-addition (oils, dried herbs). High-value options exist (Vanilla, Saffron). Need well-drained soil (pH 6-7.5) and sunlight (6+ hrs). Significant market potential (e.g., Basil market projected at $2.3 Billion by 2030).
Table: High-Value Crop Options at a Glance
Crop Name | Ideal Growing Conditions (Climate & Soil) | Potential Income per Acre (Estimate) | Key Regions | Key Insights |
Saffron | Cold; Well-drained sandy loam/calcareous, pH 6-8, altitude 1500-2800m | ₹1.5L-₹3L/kg (High per acre potential) | J&K, HP, Uttarakhand | CEA expands potential, labor-intensive harvest |
Avocado | Cooler (Nilgiris, Karnataka); Warmer possible w/ techniques; Well-drained | ₹6 Lakh – ₹12 Lakh | Nilgiris, Karnataka, Kerala, North India | Growing urban demand, export potential, long lifespan |
Stevia | Tropical/Subtropical, long days, RH 65-80%; Sandy loam, pH 5.0-7.5, well-drained | High (leaves up to ₹300/kg; 3-3.5 tonnes/acre/year yield) | Punjab, Haryana, Maha, K’taka, C’garh, MP, AP, UP, J&K, HP, UK | Health trend, low water, multi-harvest, govt. subsidies |
Sandalwood | Moderate climate (Karnataka); Red/black cotton soil | ₹1.2 Cr – ₹1.5 Cr / hectare (over 15 yrs) | Karnataka | Very long-term, high-value, low maintenance investment |
Organic Vegetables | Fertile soil, organic matter; Suitable climate for specific veg | Up to ₹30 Lakh (diversified farm) | Pan India, esp. near cities | Premium prices, health trend, govt support, diversification potential |
Exotic Fruits | Varies (e.g., Dragon Fruit: Guj, Maha); Well-drained | Up to ₹1 Lakh annually (varies) | Guj, Maha, K’taka, Kerala | High margins, urban demand, niche markets |
Timber (Mahogany/Teak) | Adaptable | “Great pay” (after 15-20 years) | Pan India | Long-term, low maintenance, consistent industrial demand |
Banana | Tropical; Rich, loamy soil | ₹2 Lakh – ₹3 Lakh | TN, Maha, Kerala | Consistent demand |
Pomegranate | Hot, dry; Well-drained | ₹2 Lakh – ₹3 Lakh | Maha, Guj, K’taka | High value, health benefits |
Grapes | Warm, dry; Well-drained | ₹2 Lakh – ₹3 Lakh | Maha, K’taka, TN | Table & wine varieties offer options |
Mango | Tropical/Subtropical; Well-drained | ₹1 Lakh – ₹2 Lakh | UP, AP, Maha | Strong domestic & export demand |
Bamboo | Warm, humid; Well-drained sandy/clay loam, pH 4.5-6.0 | Varies (construction, crafts, etc.) | MP, Maha, Arunachal, Odisha, NE India | Fast-growing, versatile, eco-friendly, low care |
Mushrooms | Controlled env (15-30°C, 80-90% RH), low light; Organic substrate | Varies (Exotic fetch higher prices) | HP, Punjab, Maha | Quick returns, indoor potential, uses waste |
Herbs (Basil, etc.) | Well-drained, loamy/sandy, pH 6-7.5, 6+ hrs sunlight | Varies (High value potential) | TN, Kerala (some) | Culinary/medicinal demand, value-addition potential |
(Note: Income figures are estimates and vary greatly based on location, variety, market conditions, and management practices.)
3. How to Tap into Profitable Livestock Farming
Livestock is a vital part of Indian agriculture, contributing significantly to GDP. For farms with 5+ acres, dairy, goat, and poultry farming offer excellent scalability and profitability.
3.1 Dairy Farming: The Consistent Income Stream
- Why Consider It? India is the world’s largest milk producer. Consistent year-round demand for milk and dairy products. Resilient business model.
- Scale Advantage (5+ Acres):
- Feed Production: Dedicate land (approx. 1 acre per 7-10 cows) to grow fodder, significantly reducing feed costs.
- Grazing Space: Natural, cost-effective feeding and better animal welfare.
- Infrastructure: Ample space for large, well-ventilated, hygienic sheds for a growing herd.
- Waste Management: Room for composting manure for fertilizer.
- Profitable Breeds: Gir (Good yield, ₹30k-₹2L), Holstein Friesian (High yield, ~₹1.5L), Jersey (Good yield, ₹40k-₹60k), Sahiwal (Indigenous, good yield, ₹60k-₹75k).
- Income Potential: With 10 cows, potential earnings of ₹8,000 – ₹1 lakh/month (after feed costs). Estimated profit per head: ~₹770/day.
- Key Considerations: Requires good management (hygiene, health, breeding). Integrated farming (growing own fodder) is key for profitability. Government schemes (Rashtriya Gokul Mission, DIDS, NPDD) and NABARD subsidies support establishment and expansion.
3.2 Goat Farming: The Low-Investment, High-Return Option
- Why Consider It? Fast-growing agribusiness, relatively low initial investment. High profitability potential. Growing market demand for goat meat (chevon), milk, fiber, and manure. Projected market growth (4.5% CAGR by 2027).
- Scale Advantage (5+ Acres): Goats require less space (1 acre can house 40-50 goats), allowing for a large herd on your land. High reproduction rate (often twins annually) facilitates rapid expansion.
- Multiple Income Streams: Meat, milk (increasingly popular for nutrition), manure (organic farming), fiber, breeding stock.
- Profitable Breeds:
- Dual Purpose: Beetal, Osmanabadi, Malabari, Barbari.
- High Milk: Jamunapari, Surti.
- Meat: Boer, Sirohi, Black Bengal, Sojat, Gujri.
- Income Potential: Case study shows ₹17 lakhs/year with 160 goats. Profitability depends heavily on breed and management.
- Key Considerations: Breed selection is crucial. Requires proper shelter (well-ventilated, dry), fencing, balanced diet, deworming, and veterinary care. Government support via NABARD (25-35% loan subsidies) and state schemes (40-60% subsidies) is available.
3.3 Poultry Farming: Quick Returns and Scalability
- Why Consider It? Profitable, rapidly expanding sector. Quick returns, especially broiler farming (market-ready in ~45-60 days). Not dependent on rainfall/sunlight. India is a top global producer of eggs and chicken meat.
- Types:
- Broiler Farming: Raising chickens for meat (6-8 weeks cycle).
- Layer Farming: Raising hens for eggs (start laying ~18-19 weeks, >250 eggs/year).
- Country Chicken: Disease-resistant breeds.
- Dual Purpose: Breeds like Rhode Island Red, Gramapriya for both meat and eggs.
- Scale Advantage (5+ Acres): Allows for multiple large sheds, efficient layout, biosecurity zoning, and potentially integrating feed production or manure management.
- Profitable Breeds: Commercial Broilers (Hubbard, Cobb, Krishibro etc.). Layers (various commercial strains).
- Income Potential: Starting with 500 chickens could yield ~₹4.25 lakh/year profit. A 5000-bird broiler farm (45-day cycle) can generate ~₹3.65 lakh profit per cycle.
- Key Considerations: Requires careful planning (site, housing, breed), management (feeding, water, ventilation, health), and strict biosecurity. Contract farming models (partnering with integrators) offer guaranteed income and support. Government schemes and subsidies (up to 50% capital subsidy, interest subvention) support the business.
Table: Profitable Livestock Options at a Glance
Livestock Type | Est. Initial Investment (Medium Scale) | Est. Annual Returns (Medium Scale) | Key Management Considerations | Scalability Notes |
Dairy Farming (50 Cows) | ₹50 Lakhs – ₹2.5 Crores (incl. land) | ₹13.8 Lakhs – ₹1.5 Crores | Feed, breed, hygiene, health, waste management | High scalability w/ land for feed/grazing, value-addition potential |
Goat Farming (100 Goats) | ~₹14.2 Lakhs (excluding land cost) | ₹7.5 Lakhs – ₹9 Lakhs (from yr 2) | Breed, shelter, feeding, health, breeding | Highly scalable (low space/goat, high reproduction), multiple income streams |
Poultry (5000 Broilers) | ~₹23 Lakhs (shed & equip.) | ~₹8.2 Lakhs (based on 7 cycles/yr) | Brooding, feed, water, ventilation, health, biosecurity | Scalable sheds/birds, contract farming option reduces market risk |
(Note: Investment and returns are highly variable. These are rough estimates. Conduct detailed project reports for specific scenarios.)
4. How to Turn Your Farm into a Destination: Agri-Tourism
Got a beautiful farm? Why not share it? Agri-tourism allows you to diversify income by inviting visitors to experience rural life and farming firsthand.
- What Can You Offer?
- Farm Stays (Authentic accommodation)
- Guided Farm Tours (Showcasing crops, animals, practices)
- Interactive Activities (Fruit picking, feeding animals, planting)
- Workshops (Cooking with farm produce, pottery, traditional crafts)
- Nature Experiences (Trails, bird watching, relaxation)
- Farm-to-Table Dining
- Who Is Your Audience? Urban dwellers, families, school groups, nature lovers, corporate teams (for retreats).
- How Do You Earn? Accommodation fees, tour/activity charges, direct sales of farm produce, workshop fees, food sales.
- Scale Advantage (5+ Acres): More space allows for dedicated guest areas, diverse activities, better ambiance, and handling larger groups without disrupting core farming operations.
- Getting Started: Research successful farm stays in India (search online for “#agritourismIndia”, “#farmstaysIndia”). Develop unique selling points based on your farm’s specifics. Ensure safety and basic amenities. Market through social media and travel platforms.
5. How to Unlock Extra Value: Processing Your Produce On-Farm
Don’t just sell raw produce! Transforming it into value-added products can significantly increase your profit margins, extend shelf life, and open up new markets.
- What Can You Process?
- Fruits: Jams, jellies, juices, pickles, dried fruits, pulp.
- Vegetables: Pickles, sauces, purees, dehydrated vegetables.
- Spices: Grinding, blending, packaging.
- Oilseeds: Oil extraction (mustard, groundnut, sunflower), selling oil cakes as feed.
- Milk: Ghee, butter, paneer, cheese, yogurt, khoya.
- Meat (Poultry/Goat): Ready-to-cook cuts, marinated products, sausages (requires specific licenses and infrastructure).
- Grains: Flour milling, puffed grains.
- Key Benefits:
- Higher Profits: Capture more of the consumer price.
- Reduced Spoilage: Extend the life of perishable goods.
- Branding: Create your own farm brand, build customer loyalty.
- Market Access: Sell directly online, partner with local retailers, or supply larger companies.
- Scale Advantage (5+ Acres): Provides space for dedicated processing units, storage, and handling larger volumes, making investments in equipment more justifiable.
- Getting Started: Start small based on your primary produce. Research processing techniques and required equipment (YouTube searches like “#fruitprocessingIndia”, “#smallscaleoilextraction” can be helpful). Understand FSSAI regulations and licensing. Focus on quality and packaging.
6. How to Power Your Farm Sustainably: Integrating Renewable Energy
Cut operational costs and boost your green credentials by harnessing renewable energy.
- Why Go Renewable?
- Lower Electricity Bills: Reduce costs for irrigation pumps, lighting, processing units, cold storage, etc.
- Potential Income: Sell surplus solar power back to the grid (net metering).
- Environmental Sustainability: Reduce carbon footprint, reliance on fossil fuels.
- Energy Independence: Less vulnerability to grid outages or price hikes.
- Suitable Solutions for Farms:
- Solar Water Pumps: Efficient irrigation, especially in sunny areas.
- Rooftop Solar Panels: Power farm buildings, equipment, homes.
- Biogas Plants: Convert animal manure and farm waste into cooking gas or electricity, plus get organic slurry fertilizer.
- Scale Advantage (5+ Acres): Larger energy needs make the ROI on renewable systems more attractive. More roof space and land area available for panel or biogas plant installation.
- Getting Started: Assess your farm’s energy consumption. Research solar providers and biogas plant designs (check “#solarpowerforfarmsIndia”, “#biogasplantIndia” online). Explore government subsidies available for renewable energy installations in agriculture (like PM-KUSUM).
7. How to Fuel Your Growth: Leveraging Government Schemes & Subsidies
The Indian government offers numerous schemes to support farmers. Tapping into these can significantly reduce costs and boost your venture’s viability.
- Why It Matters: Reduces financial burden, encourages technology adoption, promotes specific sectors (like organic farming, dairy, medicinal plants).
- Key Schemes to Explore (Relevant for 5+ Acre Ventures):
- Crop Specific: National Medicinal Plants Board (NMPB) Schemes (for Stevia, etc.), National Horticulture Mission (NHM).
- Livestock: Dairy Entrepreneurship Development Scheme (DEDS via NABARD), National Livestock Mission (NLM), Poultry Venture Capital Fund (PVCF via NABARD).
- General / Infrastructure: Rashtriya Krishi Vikas Yojana (RKVY – state-level integrated development), National Mission for Sustainable Agriculture (NMSA – promotes IFS, soil health), Pradhan Mantri Krishi Sinchayee Yojana (PMKSY – water efficiency/irrigation).
- Risk Mitigation: Pradhan Mantri Fasal Bima Yojana (PMFBY – crop insurance).
- Organic Farming: Specific state government schemes (e.g., Karnataka).
- Renewable Energy: PM-KUSUM (solar pumps and grid-connected solar).
- How to Proceed: Identify schemes relevant to your chosen venture (crop, livestock, processing, energy). Visit official government websites (NABARD, Ministry of Agriculture, State Agriculture Depts) for detailed guidelines, eligibility criteria, and application procedures. Be proactive in seeking information.
Table: Key Government Schemes Overview
Scheme Name | Objective | Target Beneficiaries (Inc. 5+ Acre Farms) | Type of Assistance | Key Crops/Sectors Covered |
NMPB Schemes | Promote medicinal plant cultivation | Farmers | Subsidy on production costs, processing loans | Medicinal plants (Stevia, etc.) |
DEDS (NABARD) | Promote modern dairy farms | Individuals, Groups, Companies | Capital subsidy on dairy units | Dairy farming |
National Livestock Mission | Sustainable livestock development | All Farmers | Financial aid for breeding, feed, infra | All livestock (Cattle, Poultry, Goat, etc.) |
PMFBY | Crop loss insurance | All Farmers | Insurance coverage | Major food & commercial crops |
NMSA | Promote sustainable agriculture | All Farmers (focus on rainfed) | Aid for integrated farming, soil/water management | Crops, livestock, horticulture, forestry |
RKVY | Achieve agricultural growth (via States) | States (assist farmers) | Support for agriculture & allied sectors | Agriculture, horticulture, livestock, fisheries, dairy |
PMKSY | Improve water use efficiency | All Farmers | Aid for micro-irrigation, water harvesting | All crops needing irrigation |
PM-KUSUM | Promote solar energy in agriculture | Farmers, Co-ops, Panchayats | Subsidy for solar pumps & grid-connected plants | Renewable energy for agriculture |
(Disclaimer: This is an overview. Always check official scheme guidelines for current details, eligibility, and application processes.)
8. How to Stay Ahead: Understanding Market Trends and Demand
Profitable farming means producing what the market wants. Keep your finger on the pulse of consumer preferences and industry shifts.
- Key Trends to Watch:
- High-Value Niche Crops: Growing demand for Saffron, Avocado, Stevia, exotic fruits, certain herbs.
- Organic & Healthy: Increased consumer preference for organic vegetables, fruits, and chemical-free produce.
- Strong Livestock Demand: Consistent growth in demand for milk, dairy products, goat meat, and poultry products.
- Value-Added Products: Expanding market for processed, ready-to-eat, or ready-to-cook agricultural goods.
- Export Opportunities: Potential for certain high-quality produce (spices, specific fruits, organic items) in international markets.
- Climate Resilience: Growing need to diversify away from climate-vulnerable traditional crops (like rice, wheat) towards more resilient options (millets, pulses).
- Why It Matters: Understanding trends helps you make informed decisions about what to grow, raise, or process, aligning your farm’s output with profitable market opportunities.
9. How to Learn from the Best: Success Stories in Indian Farming
Many farmers and agribusiness entrepreneurs across India are achieving remarkable success. Learning from their journeys can provide invaluable insights.
- Key Success Factors Observed:
- Diversification: Combining crops, livestock, and allied activities (processing, tourism).
- Technology Adoption: Using modern irrigation, CEA, renewable energy, farm management software.
- Quality Focus: Producing high-standard goods that meet market expectations.
- Market Savvy: Understanding demand, timing, branding, and distribution.
- Value Addition: Processing raw materials to capture more value.
- Integrated Farming Systems (IFS): Creating synergies between different farm components (e.g., using manure for crops).
- Leveraging Support: Actively utilizing government schemes and expert advice.
- Inspiring Examples:
- Farmers succeeding with high-value crops like tomatoes (market timing), aloe vera (innovation), or saffron via aeroponics outside traditional zones.
- Professionals leaving corporate jobs to build thriving organic farms (like Ananda Farm) or dairy enterprises (like Akshayakalpa’s model).
- Entrepreneurs building profitable goat farming businesses from scratch (like Sunita Devi in Rajasthan).
- Individuals achieving high income from mushroom farming through efficient techniques and direct marketing (like Jitu Thomas in Kerala or the brothers in Agra).
These stories demonstrate that with the right approach, planning, and execution, significant success is achievable.
The potential of medium to large-scale farming in India is immense. By adopting a strategic, diversified, and business-oriented approach, leveraging technology, and utilizing available support, you can transform your 5+ acre farm into a highly profitable and sustainable enterprise for years to come.
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