Farmland investments can be labeled as simple property transactions which involve the acquisition and possibly development of land with agricultural potential for the production of row- or permanent crops.
The Orange Ridge Capital Farmland & Agriculture Strategy is intended to deliver attractive risk-adjusted returns with a current income from land lease and row- or permanent crop sales by acquiring, developing and managing farmland and agriculture assets located in North America, Europe, Latin America, and Australasia benefitting from rising demand for agriculture products from world population growth and scarcity of arable land.
Orange Ridge Capital considers the most compelling opportunities for institutional investors are ‘own and operate’ and ‘own and partner’ strategies such as:
- Buy the land and operate at their own risk, (with exposure to the commodity price of the row- or permanent crop)
- Buy and lease to a farmer (receiving a fixed rate return)
- Buy and receive revenue based on a combination of the two previous models (row- or permanent crop)
Orange Ridge Capital offers a strategy diversified by geography, operating structure and row or permanent crop type in order to create the optimal risk/return profile.