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, Land Commodities has the expertise to design a structure that fulfills the requirements.
The two investment models we most commonly employ for our clients are:
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).
Land Commodities 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 (see Investment criteria for an explanation of the factors an investor would need to consider during the planning process).
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.