Terra unearths farmland opportunities through expansive data analytics
The United States is known for its high agricultural productivity, modern infrastructure systems, prime soil quality and access to dependable market information. As a result, American farmland has become an attractive option for Asian investors looking to diversify assets and generate stable income returns from an extremely safe asset class. For investment manager Terra Worldwide, its expansive database system developed over the past 50 years gives it an unprecedented insight into unlisted and undervalued farmland opportunities - particularly in the Midwest - on behalf of private and institutional investors.
"Farmland is a stable diversification strategy given its attractive annual income and steady appreciation, and the Midwest is a particularly strategic investment location because it is the country's main crop-producing region," says Terra principal Cliff Ganschow. "Leveraging our massive data assemblage, we can match potential investors with customised farmland portfolios that meet virtually any investment objective."
Terra capitalises on the extensive experience of its managers, deep industry relationships and advanced data analytics in sourcing top-performing farmland investment properties. Terra's forerunner entities were involved in agricultural information distribution and farmland advisory services in the US for more than 50 years. Terra's wealth of farmland information is consolidated in its 364-million-hectare LandX database system, which profiles 2 million farms and ranches in the US. Each property profile contains investment-related nominal and geospatial data such as ownership structures, commodity classifications, soil productivity, and transport and storage factors. This enables the company to channel a pipeline of high-quality global equity capital into farmland operated by America's leading farming families.
In addition to arranging separate account investments, Terra is also developing multiple investor funds to meet investment objectives, ranging from conservative funds with guaranteed returns to higher-risk opportunistic structures with returns similar to private equity and hedge fund holdings.
"Whether in separate accounts or in funds, US farmland investments are very safe with attractive returns," Ganschow says.