|Short term investment timeframe
||Provides investors with annual revenues from crop sales, commencing in year 1, whilst the investment period is for four seasons only -shortest investment period in the sector and annual cash flow.
|Diversification of farmers and locations
||For the 2011 season, up to 300 farmers from across Australia are expected to be contracted to grow grain for investors -substantial diversification benefits.
|Bi-annual cash-flow for the Project Manager
||AACLFM receives cash-flow from management fees at planting and harvest each year. The short term nature of growing grain means that the cash-flow of the Projects is regular and the Project Manager is not operating for long periods of time (often years with most MIS Projects) without income -regular investor and manager income.
|No capital expenditure or tied up capital
||Experienced farmers are sourced to provide the land, equipment, inputs and expertise to produce the crops in the Project and so there is no tie up of capital for either the investors or the Project Manager in items such as land, equipment etc.
Also, Australia has an established grain handling, storage and transportation system which requires no tie up of capital from the investor or the Project Manager -no capital investment required.
|Mature domestic and international markets for the sale of the Grain
||Mature and established domestic and international markets exist within the grain industry in order to sell wheat, barley and canola, giving investors a degree of certainty in regards to the processes surrounding the sale and payment for their Grain -strong existing established markets.
|No market distortions by the grain grown in the Projects
||The Australian Grain-belt is restricted to rainfall zones and as such, the majority of available land to produce grain is currently being utilised. The Project will only grow wheat, barley and canola on established properties with established farmers and is not expected to grow any more grain than is already currently grown by farmers - no market distortion.
|No “tax advantage” over traditional farmers
||Investors receive the same tax deductions the traditional farmer does for the costs of planting and there is no financial engineering of either tax benefit or investor return -no tax leakage.
|No reliance on water allocations or licenses
||The majority of wheat, barley and canola crops grown in Australia are grown on non-irrigated land. The majority of the Crops in the Project will also be grown on non-irrigated land and as such will not have any reliance on water allocations or require access to water entitlements -not dependent on irrigated water.
|Partnership with existing producers in a form of sharefarming
||Experienced professional farmers are sourced to provide the land, equipment, inputs and expertise to produce the crops in the Project. The farmers share in the upside returns of the crops with investors, thus all parties interests are aligned - alignment of interests between investors and farmers.
|High utilisation of investors’ capital in the Project
||Approximately 95% of the funds utilised in the Project are utilised for actual Project expenses to grow, harvest, deliver, store and sell the crops -industry best practice.