Although Land Commodities’ primary role is to help agricultural investors buy quality farms, most of the acquisitions we make also involve establishing long-term relationships with farmers. The majority of Land Commodities’ clients are passive long-term investors seeking capital security and a stable income stream from tenanted ownership of farmland. This makes us a special type of buyer because it enables us to consider acquisitions that might not be available to buyers who are owner operators themselves.
Most farmers remain confident about the future, and in the case of cash rich farmers, continue to acquire land in order to expand production. But there are those who don’t have sufficient capital and/or equity to finance their current operations or expand production. Our clients can step in with capital to assist farmers in this position through purchase and leaseback arrangements. For those who want to stay in the farming business, this can be an attractive alternative to a sale with vacant possession.
As a farmer, you might be interested in a sale and leaseback arrangement for a variety of reasons. Buoyed by agricultural commodity prices in 2007 and 2008, perhaps you took on leverage above historical levels and you’re now caught between a rock and a hard place as lenders tighten their terms. Or maybe your an ambitious farmer trying to expand your farming operations, but you’re finding it challenging (and expensive) to obtain financing under current market conditions.
We obviously also consider straight forward acquisitions. We’re particularly interested in farms with hidden value that other buyers with less of a long-term investment approach might overlook. For example, farms that are rundown, require further investment to reach their full potential or are simply in regions out of favour with other farmers because of a run of bad seasons.
If you own a solid farmland asset and you feel you are not getting the support you need from your bank or you are simply a successful farmer wishing to expand your operations, please contact our Swiss office on +41 44 20 55 970, or our Australian office on +61 86 22 52 231 confidential chat farmer to farmer.
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.