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Operational management

If you wish to purchase farmland to actively operate as a farming business, Land Commodities can assist you to develop and implement a management strategy and team, or can comprehensively manage the property and its operations on your behalf.

We have significant experience and expertise in the regions in which we operate, with our largest operational management assignment to date being a 30,000 hectare cluster of broadacre farms managed on behalf of a single client. Members of our team have operated large commercial farming operations and held senior management consulting rolls in the agribusiness sector advising some of the largest farmers in the regions in which we operate.

We are fully equipped to handle everything that goes into running a modern farm, from financial planning and cash flow management through to planning crop rotations, ordering chemicals and equipment, integrating the latest technology, recruiting staff and navigating the ever-changing maze of regulations. We can guarantee that your property will be managed at the highest level throughout the life of the investment.

You can specify the level of involvement you wish to have in strategic planning or elements of operational decision making. Our management team will work to realise the financial potential of the farming business through the following framework:

  1. Initial assessment – We will undertake a comprehensive study of the current and historical operational performance of the farm. This will include a detailed examination of the business, current yields and output levels, current variable and fixed costs as benchmarked against comparable enterprises.
  2. Identifying objectives – We will address questions relating future plans for the development of the farm:
    1. What are your aspirations for the future of the farm?
    2. What are the opportunities to improve farm profitability in existing operations?
    3. What opportunities exist for diversification / development of new revenue streams?
    4. What is the cost of achieving these goals; what is the likelihood of successfully achieving them; do you have sufficient capital to do so; and if not, what are the priorities?
  3. Business planning – Running an agricultural enterprise, like any business, is as much about strategic planning as it is about managing cash flow and budgeting for capital expenditure. We will develop a business plan setting out production and financial targets and a strategy and budget to achieve the agreed objectives.
  4. Reporting and performance measurement – Thereafter detailed annual budgeting and reporting will be undertaken with the main criteria being profitability and return on working capital. The bulk of our remuneration will be dictated by our performance against budget and agricultural benchmarks for comparable agricultural enterprises, thus ensuring alignment of interests with our clients.

As part of our operational management service we would normally take full responsibility for the management of the farm business and perform all of the tasks normally undertaken by an owner operator:

  1. Ongoing development and review of operational strategy.
  2. Seasonal budgeting and crop rotation planning.
  3. Capital expenditure and maintenance of fixed assets.
  4. Recruitment and staff training.
  5. Engaging third party service providers and/or contractors.
  6. Negotiating sub-contract and share farming agreements.
  7. Selecting and procuring farm machinery and farm inputs.
  8. Compliance with environmental, health and safety and other legislation.
  9. Waste management planning.
  10. Applying for any available grant aid schemes / government assistance programs.
  11. Risk management including insurance, commodities hedging etc.
  12. Implementing development strategies and developing additional income streams (e.g. timber, energy generation or carbon capture).
  13. Providing professional agronomy and commodity marketing services.
  14. Management of all farm finances.
  15. Comprehensive book keeping, reporting and benchmarking.
  16. Liaising with auditors and filing tax returns.
  17. Where requested or authorised by you, securing operating finance and managing relationships with agricultural lenders.

Land Commodities have built strategic partnerships with key rural contractors and suppliers. The close working relationships we have developed and the volume of business we do on behalf of our clients collectively ensures that we are able to procure products and services on competitive terms. This enables us to pass any savings on to the farm enterprise in order to maximise profit shares for all concerned.٥杶+e{86Eحy[ܛ%!לz{^xӃhZ.׫׫uoz{^w/i