Why sell to Consortium Land

Many farmers choose to work with Consortium Land because of the purchase and leaseback arrangements we offer. For farmers who want to stay in the farming business, these sorts of arrangements are significantly more appealing than a forced sale. They can also act as a more economical financing solution than conventional bank finance.

But for a straight forward sale, why would we be different to any other buyer / why wouldn’t you just sell your farm through the normal channels? There are four main reasons:

  1. We are rational buyers – We take a more unemotional and analytical approach to farm acquisitions than the average buyer. For example, both farmers and investors can be reticent to buy in areas that have just had a series of poorer seasons, despite the fact that the recent years’ climate conditions might not be unusual when considered in the context of long-term weather patterns.
  2. We are long-term investors – Our investors usually have a very long-term approach to agricultural asset ownership, so they’re often happy to buy an underperforming farm and make the investments required to bring the farm up to optimal production.
  3. We are cash investors – Whereas your neighbours may be poorly funded and banks less prepared to lend after a couple of poor seasons, our clients are cash investors, so they don’t need bank finance to get a deal done. Also, if you’re farm has been underfunded, our clients also have the capital to make the post-acquisition investments that your farm might require. Many farming buyers simply cannot afford lower yields and higher costs in their first couple of years of ownership.
  4. We make quick decisions – Even though we undertake thorough due diligence on all of our acquisitions (so overall transaction times will not necessarily be shorter), our deep knowledge of regions we work in enables us to quickly give you an indication of the price we’d be prepared to pay.

Let’s be blunt, we’re not saying that you’ll be able to sell to us at a much higher price than you’d get elsewhere. We will of course expect a discount commensurate with any issues that might be making it hard for you to sell your farm. That’s why we’re interested in buying your farm in the first place.

What we are saying, however, is that many farmers in a bad position who try to wait things out till the market improves before selling end up regretting it. Often this can result in their equity position being eroded even further, so even though they get a better price later on down the line, they still walk away with less money.

So if you’re looking for that middle ground between selling too cheaply today or waiting longer than you’d like, please contact our acquisition team on +61 86 22 52 231. You’ll be talking farmer to farmer and, of course, any discussions will be on a strictly confidential basis.

Before getting in touch, please take a look at the geographic and sector focus section of our website to make sure your farm is in one of sectors and regions we focus on.