Australian Farmland FAQ
Australian Farmland FAQ
Please click on a question to see the answer
Can I sell the land before the end of the contract term?
The contracts are fully assignable, enabling the this process administratively very simple without necessarily incurring significant legal fees.
What are the ongoing running costs for the management of the Farm?
The running costs will vary from year to year and known as variable costs and fixed costs which are associated with items such as labor and machinery. The current estimation for variable costs is circa Aus $240 per hectare.
What is Beneficial Ownership?
Beneficial Ownership is an efficient way for the land to be owned, providing flexibility and reducing legal land, whilst title remains with GAS Global Agricultural Service, who through HilliersHRW, hold the Land in trust for the owner.
Who holds the title deeds to the land?
The title deeds to the land are held by HilliersHRW.
What risks are involved?
One of the key risks associated with the investment is the weather and the amount of rainfall received in the growing season. The crop yield is directly influenced by the amount of rainfall received and the rainfall can fluctuate from year to year. To mitigate the risk, not only has careful study of the farmland been made by experts but the erm of the Land Purchase has been set at 8 years, building resilience in to the average predicted yield, as it is expected during an 8 year period there will be one year of below average rainfall and similarly there should be a year with a bumper harvest due to exceptional growing conditions.
Where do my funds go?
All funds are remitted in accordance with the Land within the contract, to HilliersHRW. The Escrow Lette defines the terms by which HilliersHRW can release the funds for the land purchase, when the funds are sent either direct to Australia to complete on the Land Purchase or via GAS Global Agricultural Services to complete the land purchase transaction.
If I receive 70% of the net profits from the farm, where does the other 30% go?
The portion of the net proceeds from the sale of the crops not paid to the land owner is paid to GAS some of these funds will be used to pay the costs associated with the elected farm manager and other fixed costs with the balance as profit to GAS.
Is there any incentive for larger land purchases?
Yes, the larger the land holding the greater economies of scale can be achieved and therefore an increase in the percentage of the net profits paid to the owner. Typically owning in the region of 145 hectares will see 80% of the net profits paid to the land owner.
What is the Harvest Cycle?
Crops are sewn in the australian Autumn (the end of April, begginning of May), grown during the winter months and harvested in the Australian Spring early summer (November/December). The harvested produce is then stored and sold in the February/March of the following year, with yields being paid around August following the farms fully audited accounts.
What crops are grown and how is this determined?
Expectation is that the usual crop will be Wheat, as the Farms typically fall in the Southwest Australian Wheat Belt. The Farm Manager will have responsibility for deciding the crop that is planted on the land as on occasions other leguminous crops may be planted to enable core nutrients to be replaced in the soil.
How and when will the crops be sold?
The crops will be sold in late summer on the open market
Who are HilliersHRW?
HilliersHRW are a UK firm of solicitors who manage the ESCROW arrangements regarding the Land Purchase and are also responsible for holding the Land Title for the Farms.
Who is GAS Global Agricultural Services Ltd?
GAS Global Agricultural Services Ltd is the company that has worked with renowned specialists to create bespoke and specific agronomy products. The Company is registered in Cyprus.
Who is Farmanco?
Farmanco is the Australian team of Agricultural Specialist, enlisted to provide the expertise and advice to GAS. Their remit includes, sourcing appropriate Land, surveying the land and proposing expert Farm