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. Over the long term the level of risk per unit of return in arable agriculture is disproportionately low compared to livestock only and permanent crop enterprises (i.e. tree, fruit and vine crops with longer life cycles) with liquidity in arable farmland markets generally being higher.
Land Commodities has found that these characteristics meet with the diversification objectives and risk profile of the great majority of investors entering the agricultural sector. For any investor considering arable agriculture, Australia is usually at or near the top of the list in terms of value and risk adjusted returns.
Thus, due to the preference of the majority of our clients, Land Commodities has developed a high level of specialisation and expertise in Australian arable farming. Nevertheless, members of our team have operated large commercial farms in other sectors as diverse as sheep and beef livestock, sugarcane, coffee, cocoa, rubber and citrus. Therefore, on a case by case basis (subject primarily to project size), we are able to offer our full range of advisory services in most of the primary agricultural sectors.
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