Agricultural Land Investment in Ukraine – Projected returns in excess of 400% over five years!

Demand for agricultural land is at a record high

Demand in agricultural land has increased as a result of the growth in the world’s population (there are approximately 150 more mouths to feed every minute).

Add this to the desire for more land to produce bio fuels, and demand for soft commodities is higher than ever before.

Grain production is at a record low

However, supply remains stagnant. Production of grains is at a historical 30 year-low, and yet consumption continues to grow, hitting a record high of 35 million tonnes in 2008.

As a result, a significant gap between supply and demand has emerged. This gap in the market has attracted institutional funds who have poured £8 billion into agricultural land during the last 18 months, despite the economic downturn.

The global wheat price reached a massive US$247 on 10th June 2009, and is projected to be US$270 per tonne by May 2011.

The World’s Biggest Farmland Investment

Emerald Knight together with Aston Lloyd PLC and Euro Farms can now announce a new investment providing clients with the opportunity to reap rewards from agricultural land in the “bread basket” of Europe: Ukraine. 

Why Invest?

1. Ukraine is known as the “bread basket of Europe” namely for the fact that 70% of its land is arable, and it has 40% of all rich black earth soil in the world
2. Not only is the wheat price projected to rise from US$188.64 per tonne (November 2009) to US$215 per tonne by September 2010 (Chicago Board of Trade, November 2009); crop yields in Ukraine are predicted to increase to 8 metric tonnes per hectare (USDA, 2009), one of the strongest levels worldwide, according to the Agricultural Marketing Resource Centre.
3. A Ukraine-based management company (Eurofarms LLC) will oversee all operations and implement western management techniques, technology and state of the art equipment to provide high yields for investors
4. The price of agricultural land in the Ukraine is forecasted to double in 2009 from US$1,500 a hectare, and then continue to increase by 28% per annum (areas such as Western Europe are overpriced and offer land at around US$13,200 – US$32,200 per hectare)
5. You can do your bit for the environment. Crops such as wheat and rapeseed are being used for biofuels production
6. Located at the crossroads of east-west and north-south trade routes, Ukraine is an ideal platform for exporting to both Russia and the EU.

Investment Snapshot

1. One ‘Pai’ (2 to 20 hectares of land) at US$1,000 per hectare
2. One off cultivation fee at US$750 per hectare Legal fees at US$115 per hectare
3. SIPP (Self Invested Personal Pension) Approved
4. Projected 241% ROI on the land value after five years
5. Annual income stream from sale of crops.
6. Investors receive 30% of the net profit from the harvest Projected
7. 5-year exit based on a purchase of the site by interested institutional funds Investors receive full certificate of land entitlement
8. Experienced farm management company (Eurofarms LLC) ‘on the ground’ to oversee operations, and to improve productivity and yields for investors.

For more information and to download our research reports and e-brochures
visit the Ukraine Land Investment Media Page.