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Windmill, Australian outback
MIRA’s head of agriculture talks to Agri Investor about sustainable farming in the wake of covid-19, and provides an update on fund deployment and plans for a fourth fund.
Homestead Capital Farmland Fund III had raised just over $400m by the end of 2019 and has a $600m target – the buy-and-lease strategy is expected to reach final close in June 2020.
Weather conditions in eastern Australia remain challenging, but farmland has continued to deliver strong capital growth for investors
Macquarie has closed its third fund, which was established in 2017 to invest in row cropping and permanent cropping assets, with deployment well advanced.
Westchester is selling its NSW Golden Triangle property, Grainfields, expected to fetch a price of more than A$8,000 per ha.
Hassad will invest in one of MIRA’s ag portfolios as part of the deal in a shift in strategy for the Qatar-backed group.
Following its $50m debut ag investment in Agriculture Capital’s permanent-crop focused ACM II Fund last year, the Townsend Group has recommended the $15.7bn pension add row-crop exposure.
Current owner John Nicoletti sold 70,000ha of land to Hong Kong's CK Life Sciences in 2016 in what was then the biggest single offering of freehold land in Western Australian history.
Boston-headquartered AgIS highlights rising interest rates as the greatest near-term threat to agriculture in its annual market overview, of which Agri Investor was able to get a preview.
There are compelling reasons to invest away from row crops and buy-to-lease farmland models, but there are good reasons to stick with them too. Your choice will depend very much on your strategy.
In a report first seen by Agri Investor, agri private equity investor AgIS Capital pointed to investment opportunities in the market as farmland and row crop returns drop.
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