crops

An improving commodity outlook and demand for passive investments meant annual cropland saw higher returns than permanent cropland in 2020 for the first time since 2001, said AgIS Capital.

The vehicle aims to raise A$500m in its first 12 months, providing loans of A$10m-$150m to counterparties across a variety of commodities.

OTPP’s AustOn will manage the new entity, known as Pomona Valley, with input from the current owners of the orchards.

The Melbourne-based GP is targeting 10-12% returns for its new vehicle, building on the 2019 launch of its Diversified Agriculture Fund.

A presentation to the pension details PGIM Agricultural Finance & Investments’ plan to raise $600m from a small number of investors and add to an existing $400m farmland portfolio.

Agriculture showed ‘remarkable resilience’ as an asset class over 2020 as returns held relatively steady throughout the year.

The project could unlock investment in northern Australian cotton, seen as a potential growth industry by many producers.

A huge cropping portfolio has hit the market in Australia, which will provide an indication of the true level of institutional appetite for farmland.

103,006 ha portfolio is owned by investors in MIRA’s Macquarie Crop Partners, which is nearing the end of its 10-year term.

With goFARM, Primewest, MIRA and Roc Partners all either managing or vying for management of Vitalharvest Freehold Trust in the past 12 months, demand for Australian farmland assets remains high.