Developing the right strategy for any agricultural investment is critical to long term performance. Issues such as buying the right property at the right price are critical because approximately two thirds of the long term returns from agriculture are derived from the capital growth of the investment. All too often we see examples of poor decisions when it comes to property purchasing and subsequent strategy, and as a consequence sub optimal business performance is inevitable.

To help address this, GFA provides an advisory service which is separate to the standard management service of the business. The range of services we offer includes:

• Portfolio and strategy development for potential investors. Management of production (climate) risk is a key issue for agricultural investments. Appropriate strategies to manage production risk will reduce the volatility of investment returns. This can be done in a number of ways such as geographic diversity, enterprise diversity, the proportion of the business with dryland versus irrigated production. GFA has considerable experience and expertise in this area having been involved in these issues for a number of investors. Work has involved grain and livestock sectors.
• Acquisition service, including property assessment and negotiation on behalf of investors. A professional approach to acquisition pays off in both the short and long term. Purchasing the right property at the right price is a critical component of any agricultural investment. GFA acts as an independent party to help ensure you get the best result.
• Pre-purchase due diligence. This includes a comprehensive report on current state of the property and issues that are likely to affect profitability, enterprise selection and management, scope for productivity gains and the likely performance of the business. The effect of risks such as drought and price volatility are also addressed.
• Specific strategic analysis, that may arise in farm businesses. Previous projects have involved analysis of water values and land use conversion opportunities.

 

GFA always acts with complete independence when undertaking Advisory work and any conflicts potential or real, are declared and managed prior to work being undertaken.

                                                                             

If you wish to discuss this service any further or require more details, please contact us through the Contact Us page of this web site.