At Land Commodities we understand that selling a farm which has provided your family with a home and a livelihood, potentially for generations, can be a traumatic experience. We also recognise that each seller is unique and we attempt to engineer deal structures not only tailored to the needs of our investors but also to the circumstances of the seller.
Land Commodities mainly specialises in farmland lease management on behalf of investor owners. As well as acquiring farms with vacant possession and leasing them to new tenants, many of the deals we do are purchase and lease-back arrangements whereby our investor leases the farm back to the selling farmer as a condition of the purchase. In this sense a sale arranged through Land Commodities is often seen by sellers more as an ‘equity release’ or financing type of arrangement: a kind of halfway house between retaining ownership and a straightforward sale.
In the modern farming world, many farmers view land ownership and farming as two distinct commercial endeavours. Some farmers wish to focus exclusively on the operational side of farming and leave the real estate element to others. Other farmers we deal with sell a part of their agricultural holdings because their farming enterprise requires a capital injection for cash flow, capital expenditure or debt restructuring purposes.
Although our primary duty is to our investors, from the farmers’ perspective, in fulfilling this duty, we function more like a middle man. Many farmers would rather sell to an investment buyer prepared to lease the land back to them, rather than another farmer who would usually require vacant possession.
For some of our investors, income is more of a priority. For others, it’s a long-term hold where capital appreciation and wealth preservation is more the objective. This allows us to be quite flexible in our deal-making approach. For example, in purchase and leaseback arrangements we sometimes grant special rights to the selling farmer to reacquire the farm in the future. This sort of deal gives our client all the benefits of ownership and a defined exit mechanism whilst also giving you the finance you need to up your farm income so you’re in a better financial position when it comes time to repurchase your farm.
We operate under the belief that the best way to maximise returns for all involved is for the interests of our investors to be closely aligned with those of farm tenants. To this end we work closely with farming tenants providing them with active assistance to ensure that farm performance is optimised. Maximising operating profits through solid agronomic practices, better use of the latest technologies and improved access to higher value markets for farm produce benefits all parties concerned.
To find out more about the alternatives to standard bank finance, or simply to receive a fair appraisal of your property from a knowledgeable and rational buyer, please contact our Swiss office on +41 44 20 55 970 or our Australian office on +61 86 22 52 231 for chat on a confidential, no obligation basis.
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.