Farming

 

There is substantial interest in agricultural land as an investment. Agricultural commodities are also regaining their value in light of increasing environmental concerns and transport costs. Investment opportunities can be divided between those in the UK and those abroad. Whilst the UK can offer significant tax breaks, foreign climate offer the benefits of better growing conditions and lower overheads.

 

UK Farming

Revenues from farming are unpredictable and not always substantial. However, the value of land continues to appreciate steadily and has been the main component of returns from farming.

It is relatively common for farmland to be managed professionally under contract. If sufficient funds can be raised (about £1m) an existing farm can be purchased outright and simply leased back to the farmer under a tenancy agreement, providing the farmer with a capital sum for eventual retirement or simply enough capital security to take advantage of opportunities to develop the business in a more cost-effective manner - for example to fund conversion to organic status or establish bio-fuel crops. Alternatively a suitable tenant farmer can be put in place.

 

If only a smaller amount is available it is still possible to acquire parcels of land, which can similarly be farmed under contract. It would be more cost effective if the contractor is also responsible for managing the adjacent property.

Ethical Investments acts as an introducer for a company, which specialises in managing farmland for organic conversion on behalf of small-scale investors.

We are also interested in creating an Industrial Provident Society to acquire land for community benefit in order to ensure the continuance of farming and prevent development of housing.

 

There is a possibility that an investment in UK farming would be exempt from inheritance tax after 2 years.

Global Farming

The more favourable climate, lower land and labour costs are some of the reasons behind the emergence of a growing number of Agribusiness Investment Schemes overseas, particularly in developing countries. In addition to possibility of substantial financial returns the social  dividend for local communities can be enormous.

Ethical Investments is able to source investment schemes for the following crops:

grapes, citrus fruits, mangoes, vanilla, olives,

We are also working with a UK company offering investment schemes for jatropha in a number of developing countries.This is a non-edible bio-fuel crop which, if grown competently and responsibly, can provide valuable additional revenue and security for subsistence farmers.

Jatropha has the attraction of providing high revenues in a short period - it can produce oil in the first year, reach full maturity within three years and live for about 35 years. The value of oil produced is linked closely to the value of crude oil and should benefit from future increases in oil prices. It also provides helps reduce host countries' reliance on oil imports.

We are also interested in establishing an Industrial & Provident Society to support individual projects in developing countries. We are currently working on a number of possibilities. If you wish to be informed of any developments or are involved in a project that requires funding please contact us