DOWNLOAD: Lease or operate?

In the second of a series, we map out the ag fund universe by strategy. Flick through our presentation to find the vehicle that fits your bill.

An investor owning an agricultural asset can end up doing very different jobs. It can have its hands in soil, running farming operations from sowing to sales. Or it can lease the land and facilities to someone more willing to do it. Both entail different rewards and risk. In this presentation, we slice and dice the fund market so you know how close you want to be to the field.

Our analysis is the second in a series based on anonymized data provided by bfinance, the consultancy. It yields interesting insights: funds-in-market are evenly divided between own-and-operate, cash-lease and other lease-type strategies. North America leans heavily toward the latter – which includes flexible lease or crop share, where an element of the yield is driven by output or operational risk – while Australasia favors cash leases. Some regions feature comparatively more offerings focused on different assets altogether, such as water rights or ag infra.

In this presentation, we also break the market down by size and sector. Click on it to harvest our findings.