Insight farmland geographies rationale
Oceania is a recognised, long established existing 'bridgehead'. This region is part of the Insight farmland ‘comfort zone’ and our team members have extensive experience in acquiring, managing and divesting in farming operations in these countries. Both countries are globally recognised for their market leading 'agri-expertise' with superior governance and compliance standards; plus there are no agri-industry subsidies, thus resulting in proven cost leadership in a variety of food sectors. Oceania is also in close proximity to over 3 billion people in growing Asian and Middle Eastern markets.
Some of the key reasons for investing in Australia include:
- Access to cutting-edge farm management capabilities
- Strong phytosanitary status
- Mature and transparent water market with well developed infrastructure
- Favourable and transparent investment regime
- Established agricultural region with crop production counter-seasonal to the northern hemisphere, thus providing the opportunity to potentially extract a premium result
Some of the key reasons for investing in New Zealand include:
- Significant potential to expand pip fruits and other specialist crops
- Optimal climate to produce a wide-range of speciality crops at competitive cost basis and scale
- No subsidy and proven cost leadership in pasture based dairy and sheep and horticulture
- Valuable free trade agreements (FTA) agreements with key export markets and well established trade channels
- Mostly disease free status across with strong phyto-sanitary conditions
- Well-developed infrastructure
Why European Union?
The EU is part of the Insight farmland ‘comfort zone’ and our team members have extensive experience in acquiring, managing and divesting in farming operations in these countries. This region is a recognised, long established existing 'bridgehead'. The climate, soils and weather patterns allow for competitive production of sheep, beef, arable and horticultural crops.
Some of the key reasons for investing in the EU include:
- Access to qualified farm management capabilities
- Attractive entry pricing for pasture land and opportunity to create value through aggregation
- Opportunities to convert conventional farms into organic production systems (grains and oilseeds and livestock)
Why United Kingdom?
The UK is the Insight farmland's team headquarters and an investment ‘comfort zone’. The region benefits from an established agricultural region, attractive climate, soils and weather patterns allowing competitive production of milk, sheep and beef, arable and horticultural crops.
Some of the key reasons for investing in the UK include:
- Access to qualified farm management capabilities and well-developed infrastructure
- Favourable investment regime
- Given the strong domestic market, potential to achieve a significant uplift in dairy profitability in a ‘hard’ Brexit scenario
Why Pacific South America?
Pacific South America is part of the Insight farmland ‘comfort zone’ and our team members have extensive experience in acquiring, managing and divesting in farming operations in these countries. This region is a recognised, long established existing 'bridgehead' and it is in close proximity to over 3 billion people in growing Asian markets.
Some of the key reasons for investing in Chile include:
- Attractive geography for dairy and a variety of protein and permanent crops
- Favourable investment regime and continued development of farming infrastructure
- Climate change arbitrage: due to changing weather pattern, permanent crops from Northern Chile are migrating to Southern Chile
- Current farming land has the potential to be converted into permanent crops
Colombia has an improving political climate and strong macro-economic conditions.
Some of the key reasons for investing in Colombia include:
- Good soils and reliable rainfall with potential to upgrade farming infrastructure and lift productivity
- Domestic growth to be biggest driver of changing consumption patterns
- Attractively located to supply both North and Latin American markets
Why United States?
The US is one of Insight farmland's ‘comfort zones’. Our team members have extensive experience in acquiring, managing and divesting farming operations in this region. This region offers high quality soils, an attractive climate and infrastructure resulting in cost leadership across a variety of crops.
Some of the key reasons for investing in the US include:
- One of the largest producers and exporters across most crops grown globally
- Strong domestic market with significant depth and liquidity of the land market
- Well-developed infrastructure and access to superior farm management capability
- Prevalent institutional ownership and governance framework
- Deep and liquid market for the product and underlying asset
Fund and strategy profiles
A summary of the Insight farmland strategy 2018
Insight Farmland aims to deliver attractive risk-adjusted returns with a ‘peace of mind’ approach, avoiding experiments, taking as little headline and execution risk as possible and investing in low-cost production system/regions and investment-grade countries only.
Farmland: helping you navigate the investment universe in this nascent asset class
Explaining the potential benefits of the asset class, the different ways investors typically gain exposure to farmland, what we believe to be the best way to invest in the asset class and ways to address the real or perceived challenges of farmland investment.
Past performance is not indicative of future results. Investment in any strategy involves a risk of loss which may partly be due to exchange rate fluctuations.
The performance results shown, whether net or gross of investment management fees, reflect the reinvestment of dividends and/or income and other earnings. Any gross of fees performance does not include fees and charges and these can have a material detrimental effect on the performance of an investment.
Any target performance aims are not a guarantee, may not be achieved and a capital loss may occur. Strategies which have a higher performance aim generally take more risk to achieve this and so have a greater potential for the returns to be significantly different than expected.
Portfolio holdings are subject to change, for information only and are not investment recommendations.
Farmland is exposed to the impact of government policy. Subsidies, renewable fuels, trade agreements and attitudes to ownership rights can vary between markets, and may change over time. Farmland is an inherently illiquid asset subject to the range of risks associated with primary production. Land values, like commodities, will experience large deviations from the equilibrium as a result of a range of market forces such as returns across other assets, level of interest rates, and investor sentiment.
Investments in emerging markets can be less liquid and riskier than more developed markets and difficulties in accounting, dealing, settlement and custody may arise.
The investment manager may invest in instruments which can be difficult to sell when markets are stressed.