Investment Packages

We serve a range of clients with diverse requirements. At one end of the scale, we have helped a sovereign wealth client to acquire large farming aggregations with the management goal of maximising commodity production for the export market. We have worked with private banks and their ultra-high-net-worth clients to develop passive farm portfolios leased to tenant farmers selected and overseen by us.

At the other extreme, we have also worked with wealth managers and financial advisors to develop tax efficient investment structures enabling groups of smaller investors to co-invest in a cost efficient manner.

Ultimately the choice of investment structure will depend on our clients’ objectives and the amount of capital invested, but as long as there is some farm purchase or management element to the solution, Consortium Land has the expertise to design a structure that meet the requirements.

The two investment models we most commonly employ for our clients are:

Full turnkey farmland investment service (for institutions and high net worth investors)

We provide a comprehensive bespoke service, acquiring farms based on the clients’ investment preferences and risk profile. This will include all elements of our services from initial consultancy and due diligence to acquisition and management (see Our services for full details).

This can be done either over one or two farms, or a large portfolio of farms. The farms can be either managed by us on a profit sharing basis with contract managers, or rented on a fixed lease basis to tenant farmers. We can procure and manage all third party service providers (legal, tax etc) or work in conjunction with a client’s existing advisors (see Management services for details of the management options available).

Consortium Land is able to tailor these turnkey investment packages to meet specific risk-return criteria. Armed with an understanding of an investor’s strategic objectives, we are able to formulate portfolio strategies by selecting agricultural assets in different regions with varying soil, weather, crop type and management options. By combining these variables in appropriate weightings, portfolios can be constructed to fit with an investor’s specific risk-return profile (seeInvestment criteria for an explanation of the factors an investor would need to consider during the planning process).

Pre-structured investments (for smaller private investors and institutions)

We have developed a number of innovative investment structures which enable investors to participate in direct farmland ownership at lower investment levels. These structures are more rigid in their construction, with less discretion being given to participants over asset selection. However, they do enable smaller investors to co-invest in large commercial farming operations where the investment benefits of economies of scale and lower transaction costs are still captured.

For the avoidance of doubt, these structures aren’t restricted to conventional collective investment vehicles. Indeed, we are recognised for our innovative approach to developing a variety of co-investment solutions which allow participants to retain the independence, security and transparency of direct farmland ownership. Working with external tax and legal professionals we have helped design various structures of this kind on behalf of investment intermediaries.

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.

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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.

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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).

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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.

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