payment for use of the Share farming by – land. There is mutual agreement with normally no joint venture partner, the participation in the investor would provide value of crops grown inputs into the venture on a leased property. such as: decisions around cropping, inputs Off-take from property such as fertilizer and production according – seeds. The owner would to the joint venture also handle insurance agreement an investor and production hedging. could take their return All other growing activity via physical product would be carried out by which they can sell or the joint venture partner. use as they wish, less an agreed management fee for the operators. Capital gain this – would only be realised by the sale of the land by the joint venture or the winding up of the joint venture. Share in profits generated by the fund Passive the land – this is would be the – management fund nominal profit company would manage generated by the the properties the fund properties owned by has purchased. The the fund less an Joining with other management company agreed management may choose to employ a investors to create fee for the operators of Joint variety of different a pool of cash the fund. investment methods to manage the available to invest Off-take agreement for properties depending on in agricultural land production from fund the individual farm’s owned land. characteristics, including Capital gain this – employing individual would be realised upon managers or contracting departure from the with a professional farm fund or via a capital management company. distribution by the fund.
Share farming – by mutual agreement with joint venture partner, the investor would provide inputs into the venture such as: decisions around cropping, inputs such as fertilizer and seeds. The owner would also handle insurance and production hedging. All other growing activity would be carried out by the joint venture partner. payment for use of the land. There is normally no participation in the value of crops grown on a leased property. Off-take from property production – according to the joint venture agreement an investor could take their return via physical product which they can sell or use as they wish, less an agreed management fee for the operators. Capital gain – this would only be realised by the sale of the land by the joint venture or the winding up of the joint venture. Joint investment Joining with other investors to create a pool of cash available to invest in agricultural land Passive – the land management fund company would manage the properties the fund has purchased. The management company may choose to employ a variety of different methods to manage the properties depending on the individual farm’s characteristics, including employing individual managers or contracting with a professional farm management company. Share in profits generated by the fund – this is would be the nominal profit generated by the properties owned by the fund less an agreed management fee for the operators of the fund. Off-take agreement for production from fund owned land. Capital gain – this would be realised upon departure from the fund or via a capital distribution by the fund.