Farmland
Investing in farmland to deliver stable uncorrelated returns for our investors
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INVESTMENT THESIS
Farmland is an asset that has been a storehouse for wealth for centuries. Its important portfolio traits include solid returns, low correlation to other asset classes, inflation protection, low volatility, and downside protection.
Within the farmland asset class we believe that annual row crops have the most sustainable tailwinds because continued growth in demand for basic agricultural commodities will outstrip the world’s productive capacity and lead to higher commodity prices, farm margins, and farmland values.
We believe the best farmland investments involve buying good quality farms already in production, and having them operated by good farmers. Farming is a local business requiring great focus and attention to detail. Proterra’s unique Cargill heritage allow us to identify and partner with best in class local farmers, who are passionate about farming and whose sustainable practices are key to maintaining and enhancing the quality of the farm over time. Local partners also bring knowledge of local farms, access to off-market transactions with neighbors, and enhanced community relations.
Within the farmland asset class we believe that annual row crops have the most sustainable tailwinds because continued growth in demand for basic agricultural commodities will outstrip the world’s productive capacity and lead to higher commodity prices, farm margins, and farmland values.
We believe the best farmland investments involve buying good quality farms already in production, and having them operated by good farmers. Farming is a local business requiring great focus and attention to detail. Proterra’s unique Cargill heritage allow us to identify and partner with best in class local farmers, who are passionate about farming and whose sustainable practices are key to maintaining and enhancing the quality of the farm over time. Local partners also bring knowledge of local farms, access to off-market transactions with neighbors, and enhanced community relations.
Our Strategy
Good Farms
Locate attractive relative value opportunities by evaluating historical yields; land value, liquidity; weather risks; cost of production; local cash markets; local agricultural infrastructure; execution risks and environmental impact.
Our experience has been that the best risk/return outcomes in farmland come from established farms in strong agricultural production zones, with immediate productivity.
Our experience has been that the best risk/return outcomes in farmland come from established farms in strong agricultural production zones, with immediate productivity.
Sustainability
Encourage the use of best-in-class agricultural practices and technology to maximize yields and minimize environmental impact.
Work with partners to develop and cross-pollinate sustainable best practices.
Work with partners to develop and cross-pollinate sustainable best practices.
Local Partners
Partner with capable, reputable, local operators.
Differentiated farm access and expertise through long-established community relationships.
Help source off-market acquisitions.
Differentiated farm access and expertise through long-established community relationships.
Help source off-market acquisitions.
Investment Areas
Acquire high quality farms in good production zones to produce commodity row crops.
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Operate the farms through best-in-class local farmer partners using a landlord tenant model where optimal.
Background
Why Proterra Farmland?
Our Unique Offering
Seasoned team with over 200 years of combined agriculture experience
125+ years together at Cargill brings broad network in agriculture
Credibility and relationships help to source and partner with top local farmers
Extensive network with local partners who bring deep knowledge and access to non-competitive farm acquisitions
Our Portfolio
Agrícola Dourado
Status:
Exited
Location:
Brazil
Crops:
Soy, Corn, Cotton
Summary:
Total Area:
41,209 Acres
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BFB
Status:
Exited
Location:
Australia
Crops:
Wheat, Barley, Canola
Summary:
Total Area:
109,220 Acres
Colombia Agro
Status:
Active
Location:
Colombia
Crops:
Corn, Soy
Summary:
Total Area:
153,811 Acres