Introduction for farmland investors
Frequent soft commodity price spikes, recurring food crises and falling global grain stocks: this is the new normal. Recent developments prove beyond any doubt that the world’s agricultural producers are struggling to keep pace with a rapidly expanding population’s demand for food, feed, and fuel. Consortium Land believes that direct farmland investment provides the most efficient form of exposure to a future of higher agricultural commodity prices, delivering investors reliable income and capital growth with disproportionately low levels of risk.
Through our direct farmland investment packages, Consortium Land offers investors exposure to a tangible asset which provides superior risk adjusted returns, a hedge against inflation and a low level of correlation to other assets in conventional portfolios.
Over the past few years, Consortium Land has successfully developed a range of investment approaches to cater for investors from large sovereign wealth funds to individual private investors.
This website summarises the investment solutions and services we provide to a growing client base of agricultural investors. There’s also a wealth of generalised information and downloads on farmland investing and more detailed analysis on Australia, a market with excellent fundamentals for agricultural investors. Listed below is a selection of some of the content you might find useful if you are new to the asset class:
- The Consortium Land blog – News and analysis on agricultural investing from our staff and other contributors
- Farmland and the current investment climate
- Investment benefits of farmland
- Supply and demand fundamentals
- Australia versus other agricultural markets
If you are looking for something in particular, please contact us to see how we can help you. If you would prefer us to contact you, please click here to complete the contact form and we will be happy to have the appropriate member of staff call you to begin discussions on a strictly confidential basis.
Investment returns
Farming is like any other business: all other things being equal, income is dictated by the quality of the management team. Even enterprises with similar soil, climate and business model can show a high degree of variance. This means tenant / manager selection is a critical component of the agricultural investment process.
Investment style
Inefficiencies in the farmland pricing mechanism are one of least exploited opportunities to increase returns as a farmland investor. When it comes to buying agricultural assets, we are able to help our clients beat the market because of our unconventional approach to acquiring farms and the information advantage we have in the markets in which we specialise.
Investing in Australian agriculture
Australia’s robust economy, strategic location and investment friendly business environment have made the country one of the world’s top destinations for foreign investment, with FDI inflows of over twice the OECD average (% of GDP basis, 2011).
Geographic and sector focus
For investors, the choice of agricultural sector will be driven by your risk tolerance and overall investment objectives. As a general rule, arable agriculture (i.e. the cultivation of annual crops, in particular grain) is the least volatile farming sector.