Land Commodities

Introduction & management options

Firmly focused on profitable and sustainable farming, Land Commodities’ range of management services give a broad range of absentee landowners and investors the peace of mind they require to enjoy hands-off ownership of their farmland assets whilst generating a secure and reliable income stream. In addition, the high standard of management we provide will enhance the value of the agricultural assets that we oversee.

Working with Land Commodities, your property will benefit from our team’s breadth and depth of expertise. Our farm management experts each have considerable experience of running a wide variety of agricultural enterprises (see Geographic & Sector Focus). They have the knowledge required to ensure that your farm business is optimised and performing well against industry benchmarks.

We work collaboratively with our clients to provide management solutions tailored specifically to each client’s risk profile and investment objectives whilst also taking consideration of the particular characteristics of the farm properties involved. There are a number of farm management options available:

  1. Fixed lease model – Secure and fixed income stream with the tenant bearing the operational, climate and commodity pricing risk.
  2. Operational management model – Under this model Land Commodities provides a farm manager working to a management and financial plan agreed with you in advance. We take full responsibility for the day-to-day running of the agricultural business and achieving targeted production and financial objectives. Under this arrangement Land Commodities charge a nominal fixed management fee, with the bulk of our remuneration being on the basis of a performance related share of the profits. Although income is more volatile under the operational management model, over the long-term it should also be higher than the fixed lease model.
  3. Contract farming / crop sharing arrangements – This arrangement is a hybrid between the fixed lease and operational management model. Land Commodities secures contract managers who pay a lower fixed lease with a harvest linked component being paid over and above this amount.

For more information on the risk-return characteristics of these management options, see Investment returns and Investment criteria.

We have extensive experience in procurement and contract negotiations for each of these types of arrangements. This allows us to tailor the management model to suit your investment objectives and achieve the maximum possible return for your agreed risk profile.

If you would like to have a preliminary no obligations discussion with us about what management structure might be constructed to meet your own investment requirements, please feel free contact us. Alternatively, 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.