RISK MANAGEMENT

 

 

A comprehensive understanding of markets, infrastructure, and environmental, social and governance (ESG) considerations is a critical component of risk management. Opportunistically diversified portfolios lessen natural, economic and environmental risks. It is our responsibility to maintain the long-term viability of the farmland while managing it for competitive financial returns.

 

Risk Management

• A risk assessment and valuation variance analysis are performed on every targeted transaction.

• Projected investment returns are sensitivity-tested.

• We perform a thorough analysis of markets, infrastructure, water quantity and quality, soil quality and drainage, past management and ESG considerations prior to any transaction.

• Analyze and implement different operating structures based on the clients’ risk tolerances.

 

Diversification

• Diversification serves to minimize natural, economic and environmental risks.

• We strive to diversify client portfolios by including a mix of crop types (permanent, specialty, commodity), with multiple species within each category and in different geographies and markets.

• Current market conditions support an emphasis on permanent and specialty crops over commodity crops.

Stewardship

• Risks are reduced by practicing land stewardship through promoting high environmental standards, implementing sustainable farming techniques while conserving soil, water and wildlife.

• It is our responsibility to maintain the long-term viability of the farmland while managing it for competitive financial returns.

Alternative Value and Income

• Recreation, hunting, mitigation, conservation and other non-crop income sources can provide significant risk mitigation with diversified cash flow streams.

• Our business knowledge and expertise are not limited to agriculture, and we proactively identify and implement alternative land uses, land sales and other value enhancing opportunities based on local market dynamics.