WHY AGINVEST?

Returns

Strategic Management

Experience and Expertise

Other Points of Difference

RETURNS

At AGInvest we aim to exceed average returns from a farming investment by at least 5% p.a.

Between 1990 and 2008 AGInvest delivered an average return to investors of 17% per annum during the life of the investment, according to independent analysis. The report ‘Dairy Farm Investment Potential’ was produced by John Savage, consulting economist in February 2008. Click here to view relevant tables

The AGInvest business model is to buy good farms operating at average levels of production and profitability and increase their performance to top 10% levels. 

STRATEGIC MANAGEMENT

From an asset management point of view, achieving returns of 10 – 17% p.a. from farm investment requires the following disciplines:·                

• Farm aggressively, but fund conservatively, thereby delivering cash dividends to investors.  The simple aim should be to maximise grass growth, convert that grass into top 10% production levels with minimal supplementation, and after an initial development year, control costs.·                

• Have an active strategy for adding value.  Typically we achieve production targets ahead of the budget timetable and by year three of the partnership it’s time to consider our investment options.  This could involve the purchase of a runoff, the purchase of neighbouring land or the return of some capital to shareholders.

AGInvest is proud of its track record of success. Over time, the company has demonstrated an ability to purchase the right properties, change land use or substantially lift productivity, manage the business to achieve top 10% performance and to manage relationships amongst partnership members to achieve outstanding success. 

AGInvest has deep links into farming and agribusiness. The three business owners, Andrew Watters, Cliff King and Grant Rowan are award-winning farmers with the majority of their personal wealth invested in agriculture. Between them they have investments in seven dairy farms, milking 4000 cows.

The Company’s founder, Cliff King, established his Agricultural Fund Management credentials as New Zealand’s (NZ) first Public Unit Trust in 1986. As property director for The New Zealand Rural Property Trust, King purchased 60 premium farm properties for a portfolio value of US$45M[1] (nil debt, 1990 currency). It is widely acknowledged that the mix of pastoral and arable farms, selected from 1800 candidate properties, represents even today one of the best property portfolios available in NZ.

During the later period of his involvement with the Trust, King also restructured Sherwin Pastoral Ltd and the Australian Rural Property Trust in Australia (47 farms).

AGInvest was established by King in 1990 and has evolved into dual roles: Managing farm assets for investors and providing consultancy advice to leading NZ Agribusiness. Today AGInvest manages 23 farms in New Zealand and Australia.

In 1999 AGInvest was responsible for the purchase and management of Dairy Brands (NZ) Ltd, a publicly listed company comprising 18 dairy farms, plus ice cream factory. This business was liquidated in 2003 with a 74% p.a. shareholder return during the company’s period of management.

AGInvest has completed consultancy contracts for a wide spectrum of New Zealand’s primary sector industries: Wool industry (NZ Wool Board); Meat Industry (AFFCO); Environmental (New Zealand government); Dairy Industry (Kiwi Dairies, Tui Dairies and Fonterra); Banking (Westpac, Bank of New Zealand).

OTHER POINTS OF DIFFERENCE

• All key executives and staff have extensive, and award winning, practical farming experience

• The Company is fully integrated i.e.: manages >$300M of Rural Assets from a data base of 2600 investors

• AGInvest has the skills to implement varying strategies. For example, AGInvest can manage all the elements of a  newly syndicated large sheep station - convert the flat land to intensive dairy production, run a successful lamb finishing operation on the low hills and retire the medium hills to forestry for a mixed use of carbon credit generation and production forestry

• We have recognised environmental credentials and can apply management systems to minimise carbon, nitrogen and water footprints