Investment in Agriculture, Agriculture Investments

Google On Forestry Watch

2009-11-25T20:03:00.000-08:00

“Green enthusiasts” worldwide are to be offered the opportunity to play game keeper and monitor satellite images of rainforests and report any illegal logging.

Satellite images will be frequently updated and anyone with internet access will be able to make instant comparisons with older images and identify destruction of rainforest almost immediately.

The green detectives will then be able to report the illegal deforestation to an international agency being created to monitor whether countries are meeting their commitments to reduce deforestation. Any state found to have broken its pledge will lose its share of a new global fund established by rich countries to pay nations for leaving their trees standing. Read more.

Agribusiness Investment

Agricultural investment - Plugging the Supply Gap

2009-11-25T19:34:00.000-08:00

Agriculture is hot right now and the focus is Africa. Countries and companies are setting up shop all over the continent to grow crops.

Due to economic expansion in China and India amongst others, there has been an increase in the demand for food. The trend -which has caused food price inflation in the last three years-, is expected to continue in tandem with economic growth. This therefore means that the supply gap must be plugged, and to investors this presents itself as a good opportunity to make money. For governments on the other hand, food security is crucial because high food prices leads to political instability amongst others.

Africa right now has comparative advantage in Agricultural production. Comparative advantage means given a nation’s resources, you are the lowest cost and therefore most efficient producer of a product in this case, it is crops for Africa. According to the Food and Agriculture Organization (FAO) only 14% of the continents 184 million hectares of arable land is under cultivation. Agriculture also accounts for 17% of GDP and 57% employment. This represents underutilization of resources or to put it in another way, virgin territory.

This is immensely attractive, in terms of returns to capital. In a global capital market, capital will flow to any part of the world where it is guaranteed highest returns. Right now at least for Agriculture that place is Africa. That is why funds are flowing to Africa not Russia, Brazil or the USA, which are large countries with developed agricultural sectors. This is also like outsourcing where production will move to the lowest cost producer.

Africa has absolute advantage in the production of certain crops - like coffee from East African for instance. Land and labour is relatively cheap when compared to the rest of the world. This is largely due to underutilization of resources. Other factors include fertile and varied soil to grow different kinds of crop. Governments in Africa are inclined to participate to boost domestic production and economic growth in their respective countries. Historically Africa has been ‘the continent’ for agriculture the first farming implements, irrigation and technology was invented in Africa by Africans. Slaves from some parts of West Africa were taken to North America because of their expertise in Agriculture. Read more.

Agribusiness Investment

Agricultural Market

2009-11-04T21:03:00.000-08:00

Raising cattle for the agricultural market is one of the largest industries found within the commodities market and one which comes with distinct rewards and challenges. Whether it be a small scale ranch run by several generations of family members or a huge commercial cattle enterprise there are several aspects of cattle ranching you will find necessary to understand prior to venturing into this field.

you will raise will determine the type of ranch that you will operate. Some cattle such as Angus cattle are particularly prized for both their bloodlines as well as their end products. Breeding Angus cattle is one of the most rewarding types of farming that you can find in terms of monetary value. Raising other breeds of cattle particularly if you operate a commercial undertaking can also prove to be a great means of living.

operate on the premise of providing these fine animals for both food and breeding purposes. Taking care of your cattle is the most important aspect of cattle ranching if you are in the business for breeding your cattle. You will require plenty of quality green pasture land which grows a diverse variety of grasses and grains as well as the necessary time to monitor your cattle on a regular basis. Read more.

Agribusiness Investment

Financial Retirement Planning

2009-10-26T23:22:00.000-07:00

From the point of view of farm estate planners, financial retirement planning requires a concrete strategic and savings plan. In more traditional businesses employees and owners often use an IRA, 401K or other type of investment. When it comes to farmers and agribusiness owners the answer to the questions, how much do you need to save and where will it come from, brings different answers.

For employees of traditional businesses the options often include stocks. bonds, mutual funds etc. that are in no way connected to the farm business itself.

When it comes to farmers facing the financial retirement planning issue their historical perspective results in quite different actions - because their assets are almost all tied up directly or indirectly in the farm. Sure, they need a team of professionals to assist them, but they must be a team that understands the reality that there really is no savings outside the farm business itself.

And if you have made good investments over the years or your farm business has grown in value and have a large net worth, you may also need to plan for trusts and estates for your children, grandchildren or other beneficiaries. Professional financial planners can help. A lawyer is necessary for drawing up trusts and estates. Accountants can provide some information. Basically, you need a team. These are some of the things they will help you figure out.

First, you need to identify who relies on your income, besides yourself. Then, you need to look at how much money it will take to continue to enjoy the lifestyle to which you and your dependents have become accustomed. Unless you want to cut back on your expenses, your goal should be to save enough to allow for annual withdrawals equivalent to or greater than your current earnings.

One of the challenges for financial retirement planning is that no one really knows what will happen in the future. We must assume that the cost of living will increase, as time goes by. The average inflation rate that we normally accept is 3% - what if it's more, a lot more, or less? Read more.

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Inquiry into aspects of agribusiness managed investment schemes

2009-10-11T21:27:00.000-07:00

Read the full text of Inquiry into aspects of agribusiness managed investment schemes

Having regard to the recent collapses of Timbercorp and Great Southern, the Committee inquired into and reported on agribusiness managed investment schemes (MIS), with particular reference to:

1. business models and scheme structures of MIS;
2. the impact of past and present taxation treatments and rulings related to MIS;
3. any conflicts of interest for the board members and other directors;
4. commissions, fees and other remuneration paid to marketers, distributors, related entities and sellers of MIS to investors (including accountants and financial advisers);
5. the accuracy of promotional material for MIS, particularly information relating to claimed benefits and returns (including carbon offsets);
6. the range of individuals and organisations involved with the schemes, including the holders of the relevant Australian Financial Services Licence;
7. the level of consumer education and understanding of these schemes;
8. the performance of the schemes;
9. the factors underlying the recent scheme collapses;
10. the projected returns and supporting information, including assumptions on product price and demand;
11. the impact of MIS on other related markets; and
12. the need for any legislative or regulatory change.

Agribusiness Investment.

Source.

Investing in Aquaculture for Food Security

2009-09-14T21:37:00.000-07:00

Food security clearly is more than just food production, nutrition, or food aid. Alleviating hunger, a severe manifestation of poverty, depends in the long run on sustainable and broad-based economic growth and income generation. In many poor countries, these depend on a productive, competitive, and sustainable agricultural sector. To achieve these conditions, countries must invest in rural areas to strengthen agriculture, aquaculture, the food system, and infrastructure, and to restore and conserve critical natural resources for agricultural production. This requires both public and private investment - domestic and foreign.

However, this is not enough. All sectors of civil society must work together if we are to succeed in our objective to achieve food for all. Investing in agriculture and aquaculture for food security means that grassroots and local efforts together with government, the private sector, multilateral and bilateral efforts at national level should all be focused on a common vision and agenda for food security. Food security is defined as: all people, at all times, having the physical, social and economic access to sufficient, safe and nutritious food in order to meet their dietary needs and food preferences for an active and healthy life (World Food Summit Plan of Action 1996)

Aquaculture can contribute to improved food security and nutrition through various channels: local food supplies can be improved through the increased availability of low-cost fish; employment opportunities and incomes can be raised; and consumption of fish can be increased directly. Read more..

Investment In Agriculture..

Strategic Investment In Agriculture

2009-09-14T21:15:00.000-07:00

The procedure of investment in land that awaits future urban development has been carried out for generations by both big businesses and private investors. For several it has been a gainful venture, resulting in many folks gathering large land portfolios and substantial amounts of wealth. Mainly, this investment has taken place in agricultural plots surrounding towns, villages and cities as these are seen as ripe for development as settlements expand. This type of investment has recently been opened up to the masses with many companies offering chances to unite funds for part ownership of land.

The chances to harvest large financial rewards from land investment are great. In some cases it is not even required to offer a large financial inoculation, part ownership schemes have allowed investors to begin investment in land for as little as fifty pounds, paid on a weekly basis. As a result investors differ from those attempting to build up a retirement nest egg to those struggling to get on the possessions stepladder.

In terms of the rewards some estimates consider that an investment of twelve thousand pounds could lead to a return of more than fifty. This will take about ten years but when compared to other investment opportunities the returns are excessive; obviously however, as with most investments the greater the risk, the higher the profits. As a result, those allowing for buying land should always research a number of companies carefully as an approach without intimate knowledge can be seen as foolish. This appraisal should include an appraisal of a company's credibility and past history in giving investors honest returns.

In the media the land investment business has not received the best of press in recent years. There are still a large number of companies out there that is measured trustworthy; all it takes is a little effort in researching the industry to find them. Once this research has been carried out, the returns from share purchasing can obtained quickly.

Visit Agribusiness Investment for more detail.

Source: Ezinearticles

Invest in Agriculture - Defining the Risk in Agricultural Commodities

2009-08-12T20:01:00.000-07:00

Many investors shy away from agricultural investments because of the misconception that agriculture is a risky venture. However, whether the venture is risky or not really does not lie in the sector, but more on the investor himself. Agricultural investments have its defined risk and benefits. It will indeed be very risky if one were to invest in low quality land. However, the case if very different if we were talking about prime investment grade farmland which provides stable and consistent returns while appreciating the principle.

Investors who do not have a foot in the agricultural commodity market is sorely missing out. I would guess that almost 90% of those reading this has absolutely no idea how the agricultural commodities can benefit them. This is not your fault entirely as most stock brokers and hedge fund managers are always calling for more buys into properties and bonds. Investors often call the agricultural commodity 'risky', but these are the very same folks who buy heavily into funds where they watch their shares go to zero. No commodity has ever gone to zero, and they never will.

Agriculture is the staple of almost every country's economy. By being able to provide the basic necessarily of life - food, agriculture commodity creates a tremendous economic impact. It cannot be denied that the food and farming industry is critical to the balance of trade and employment in every nation. All across the country, it is agricultural farmland that supports the economic base of nation. Let us not forget the impact that China will have on the worlds agricultural economy. The United States has a population of about 280 million, and about 330 million crop acres in production. In similar comparison, China has 1.4 billion people living off 270 million crops acres! The economic boom in China is imminent and just starting.

In recent years, the land and agricultural business has not received the best of press. There are a few selected companies out there which are measured as trustworthy, and all it takes is determination on your part to seek out these companies and to learn about investing in the agricultural commodity. Investing in agriculture can be very lucrative to the informed investor. Therefore, it is highly advisable that you seek and follow the latest news on very exciting sector.

TheInflationist believes in the power of public investing talent and aims to harness its collective talent to benefit readers. We aim to encourage you to nurture, develop and share your investing style with the rest of us. The Inflationist strives to provide objective and transparent Stock Reviews for all investors alike.

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Source: Ezinearticles

Managed Investment Schemes

2009-04-17T02:33:00.000-07:00

Managed investment schemes have a dark cloud hanging over them in light of a recent Australian Tax Office move to stop investors claiming a 100 percent deduction in the first year.

The ATO plans to abolish the tax deduction for all future agricultural managed investment schemes (MIS) with the exclusion of those involved in forestry.

Non-forestry MIS include such agribusiness ventures as almonds, avocados, olives and viticulture.

Tax incentives were initially introduced as a compensation for investors who otherwise would have had to wait perhaps 10 years before they saw a return. This was predicated on the length of time it would take for the agricultural product to reach maturity.

But of late some have argued that investors have been putting their money into an MIS solely for the tax breaks rather than for the investment itself. In the 2005-06 financial year some $1.14 billion flowed into MIS, according to figures from the Australian Agribusiness Group (AAG).

Marcus Elgin, managing director of AAG, says he expected that figure to grow to $1.2 to $1.3 billion in the current financial year. Of that investment, Elgin estimates that two thirds of that money will go into timber and the balance into agricultural schemes.

And this is why the tax office has chosen to clamp down on the schemes adopting the view that such investors are not carrying on a business through these investments and therefore should not claim a tax deduction.

The ATO plans to run a test case to see if their argument is supported. If it is and the test case is concluded before the end of the next financial year, then the deduction will automatically go on that date.

As a result it is unlikely that there will be many new non-forestry MIS next financial year as few promoters would be willing to take the risk of an ATO success and the immediate end to deductibility.

Elgin believes this possibility will encourage a push into agribusiness schemes in the current financial year.

The ATO move has been met with a mixed reaction, even among farmers. Some welcome the plan to can the upfront tax deduction saying that the promoters of agribusiness schemes distorted land values and undermined community life in the bush.

"An MIS will outbid farmers every time and then large tracts of land are put into trees," says Geoff Krick, chairman of the economics committee of the Victorian Farmers Federation.

So if properties are run as plantations then the local community loses out as there is no farmer on site, no children going to the local primary school and no spouse spending money at the local shops.

But Elgin counters this saying agribusiness schemes are very positive in their treatment of the land and that land prices have gone up everywhere.

"MIS are more careful about land use and environmental management as there is such a high level of public scrutiny," says Elgin.

If the ATO gets its way, will money still find its way into agriculture? Strictly speaking this should be the case as tax incentives should not be the major drivers for investment in agriculture.

Tax breaks should merely be a bonus with returns playing a greater role. There are more than 70 listed agribusiness companies in which to invest including one of Australia's oldest companies Australian Agricultural Co.

In addition there are also unit trusts such as Rural Funds Management (RFM).

With RFM projects there is no upfront tax deduction but rather the investment is marketed as an opportunity to diversify your portfolio.

"Agriculture is negatively correlated with other assets," says Andrea Lemmon, chief operating officer with RFM. "We offer portfolio diversification."

One RFM trust is the Chicken Fund which pays income quarterly and offers annual liquidity by giving investors the opportunity to sell your units back to the fund once a year.

Agriculture investment the key to securing economy

2009-04-17T02:18:00.000-07:00

Investment in Agriculture : The National Farmers' Federation (NFF) doesn't have a Budget wish-list. Instead, we have a plan to secure the Australian economy through the global financial crisis. In doing so, we need to ensure Australia is front-and-centre in overcoming the world food shortage.

People don't realise just how important agriculture is to the Australian economy. It's only in an economic crisis that people appreciate that our farm sector underpins 12 per cent of GDP, 1.6 million Australian jobs and 20 per cent of our national exports.

When you throw in the world food shortage - which is worsening as the global population grows by 100 million people a year and there is less land for food production - it's a compelling case for the Federal Government to re-invest in Australia's agricultural capacity.

If done right, the Government can shore-up the economy now, while also ensuring that investment generates long-term growth. The NFF's Federal Budget Submission 2009 illustrates that Australia and the international community confront two major and immediate challenges - the global financial crisis and the world food shortage.

Both have short- and long-term ramifications. Each threatens to change world economic prospects and the standard of living that Australians have come to expect.

In fact, the most recent national account figures show agriculture (with 14.9 per cent growth) is keeping the Australian economy from slipping into negative territory. But our sector's ability to keep driving the economy is contingent on building productivity.

While the Government is right to focus on the global financial crisis, by investment in agriculture it can stimulate the economy and address the worsening global food situation.

We have identified initiatives where a fiscal shot-in-the-arm can not only bolster current economic activity but also generate lasting and self-perpetuating national prosperity. This must be the Government's ultimate budgetary goal.

The NFF's Federal Budget Submission 2009, therefore, covers 10 priority areas:

* Drought Reform: the NFF seeks significant funding to support the development of a new drought policy model, one that focuses on drought management and preparedness, risk management tools, environmental sustainability and recovery from drought. These measures should be available to all farmers, not just those in an Exceptional Circumstance-declared area.

* Research and Development: shockingly, Australia's research intensity in agriculture today has slumped to 1970 levels. As a result, Australian farmers' leading productivity growth of 2.8 per cent per year over the past 20 years is petering out. Meanwhile, developing countries are outstripping our agricultural research spending. The Government must turn around this disturbing decline and boost core infrastructure and research capacity.

Further, the Government must recognise that the threat of a changing climate is a 'new' research need, requiring a new funding stream. The Government must not 'rob Peter to pay Paul' by siphoning funding from legitimate and essential productivity research to fund its climate change agenda.

* Data and Information Services: Under the 2008 Federal Budget the Rudd Government slashed funding for the Australian Bureau of Statistics (ABS) by $22 million. With accurate, relevant and reliable information being paramount for all industries, not least of all agriculture, the Government must return the ABS to, at least, 2007-08 funding levels.

* Water: The Australian Government must ensure - and do so with haste - that on-farm water efficiency projects under its 'Water for the Future' program are actually implemented. Despite accelerating water buy-back, the corresponding infrastructure component to achieve water-use efficiency is still yet to materialise.

* The Environment: In light of the overwhelming success of, and support for, the Environmental Stewardship program, the NFF is calling for its rapid expansion to target all ecological communities and species protected under the Environment Protection and Biodiversity Conservation Act 1999.

* Taxation: The NFF asserts there are significant and long-standing biases against regional living. These are likely to be compounded by the Government's Carbon Pollution Reduction Scheme, increasing the costs of fuel and energy - costs that see regional individuals, families and entire communities disproportionately exposed. To correct the existing, and likely future, biases, the NFF contends that the Tax Zone Rebate Scheme for individuals be reviewed and that a study be undertaken to assess its effectiveness and the potential for expanding it, including for businesses.

* Social Security: The NFF asserts that the five-year waiting period applied only to retiring farmers - that is, those who gift the family farm to their children - before being allowed to access the age pension, is unfair and should be abolished. Such a move would expedite sensible succession planning across the Australian farm sector.

* Education: In the face of inherent disadvantages for rural and regional students, the NFF says a major boost to regional universities and education services is long overdue. Such an investment would establish a world-class agricultural university, see more students retained in regional areas and attract metropolitan students to regional campuses with many opting to remain in regional communities after graduating.

* Infrastructure: The Government must ensure that its nation-building pledge under the 2008 Federal Budget, via the Building Australia Fund, be honoured in full. Specifically, the concern is that to-date only $12.6 billion has been allocated to the $20 billion fund.

Further, rural Australians eagerly await the Government's response to the Regional Telecommunications Review and expect the pledged $400 million initial commitment to be delivered under the 2009 Federal Budget. As part of this response, the Government must clearly articulate how its proposed National Broadband Network will 'revolutionise' the availability and quality of telecommunications services in rural Australia - both now and over time as technology and service need changes. The Government must address the uncertainty over how future upgrades will be funded, on a guaranteed basis, given it has abolished the $2 billion Communications Fund.

* Quarantine: The Government must inject substantial funding into Australia's quarantine and biosecurity regime, as per the recommendations of the recent Beale Quarantine and Biosecurity Review.

Resource form: http://www.abc.net.au/news/stories/2009/01/27/2475247.htm

Agriculture needs investment: farmers

2009-04-17T02:14:00.000-07:00

Australia's investment in agricultural research has slumped to levels not seen since the 1970s, farmers say.

The National Farmers' Federation (NFF), in a submission to the 2009 federal budget, lists 10 priority areas, including drought reform and greater spending in research and development.

Despite the economic crisis there were long-term structural challenges in agriculture that needed investment, the federation said.

"They are things like getting drought policy right," CEO Ben Fargher told ABC Television.

Farming families needed help through the worst drought in history, but help was required to assist them better manage and prepare for future dry periods.

The quarantine system also required fixing to avoid another horse flu-type outbreak.

Spending on research and development had been declining for many years at a time where it was needed in areas including research on food production with less water, Mr Fargher said

"We can't produce as much food as we once had with the resources we have."

Importance of Agriculture and Investment in Agriculture

2009-04-15T21:38:00.000-07:00

What is the importance of agriculture and investment in agriculture? The idea of 'food security' is basically important, and for that cause, agriculture is important. The task of nourishing its people has been possibly the main concern of its rulers throughout history. As such, agriculture is measured to be the very basis of political and social steadiness of a nation since times immemorial.

In addition, the agricultural division plays an important role in the sphere of given that large scale employment to people. Large and fairly large farms employ workers to undertake the various jobs relating to farming of crops and care of farm animals. In most of the countries of the world, agriculture still remains the biggest division responsible for the employing and feeding a large percentage of the population.

Agriculture is also important from the viewpoint of assessing the standard of a country's development, based on the capability of its farmers. Poorly trained farmers cannot apply the higher methods and new technologies. The importance of science and technology in the development of agriculture is fairly clear from the words of Deng Xiaoping -

The growth of agriculture depends primary on policy, and next on science. There is neither any limit to developments in science and technology, nor to the role that they can play in the field of agricultural growth'.

Even if agriculture frequently plays a contributory role in the 'Gross Domestic Product' - GDP - of most countries, it nevertheless requires a substantial increase from both the local and the international community.

Agriculture is conventionally based on bulk manufacturing. Harvesting is done once a season, most of the times, and stocked and used later. In fact, some thinkers opine that people have begun to adopt 'batch processing' and 'stocking' in manufacturing, as a result of the practices from agricultural thinking. Before industrialization, people with the biggest stocks of food and other supplies were considered more stable, and they were able to face challenges of nature without having to starve.

So important is the role of agriculture that new concepts keep 'cropping up' to give the traditional activity a modern turn. One such new idea the world is gibbering about these days is - the importance of 'organic farming'. There is evidence that, apart from their numerous other benefits, organic farms are more sustainable and environmentally sound, giving agriculture a new measurement.

The importance of agricultural practices was further established when 'Organic food' began as a small movement decades ago, with gardeners and farmers refusing the use of conservative non-organic practices. With the growth of the Organic food market now outpacing much of the food industry, many big companies have ventured into it. With the emergence of multi-national companies, and with the creation of a legal certification structure such as the Soil Association, there is every hesitation that the very definition of natural food will change, making it more of a commercial activity than ever before!

In fact, modern agriculture has already undergone a sea-change from the olden times. Nowadays, the importance of agriculture lies in the fact that it is practiced both for survival as well as profitable reasons!

Investment in Agriculture is now an ordinary managed investment option for investors with a focus on a number of key Australian agricultural commodities such as forestry and horticulture. A key feature of agribusiness investing is the tax effectual feature providing substantial tax deductions supported by an Australian Taxation Office Product Ruling. Agribusiness is an alternative asset class that offers returns generated from a traditional income source. Agribusiness offers investors another level of diversification because it is not correlated with interest rates, sharemarkets, bonds or property markets.

All you want to know about Agribusiness Investments

2009-01-30T01:35:00.000-08:00

Agribusiness is basically the business feature of agriculture - growing crops for human utilization and use. In spite of the fact that agribusiness accounts for 12.1% of our Gross Domestic Product (GDP) in the six years to 03-04, it accounts for almost 25% of national merchandise exports ($26.1 billion in 03-04), is our biggest manufacturing sector and accounts for 46% of total retail spending.

A stimulating economic shift has occurred over the past ten to fifteen years, in which agriculture has opened up for retail investment by investors. Anybody can now invest in agribusiness, bringing the benefits of Diversification, wealth accumulation and tax savings.

WHY IS AGRIBUSINESS AN ALTERNATIVE ASSET CLASS?

The rising complexity of Australian investment markets means that individual investors are no longer limited to the traditional asset classes of shares, property, fixed interest and cash.

Investors now want a diversified Portfolio so that investments are across a range of asset classes, to level out market fluctuations. In particular, they want investments whose performance is not connected - in terms of movements in market prices and returns - with the other asset classes. The Australian Agribusiness Group (MG) confirms that agribusiness is negatively correlated to other asset classes and the addition of agribusiness to a Portfolio can increase returns and reduce Risk.

The returns from agribusiness investments do not depend on the share market, property market or existing levels of interest rates. They depend on the market for the particular product being grown. With the right project, backed by a sound convincing manager who has established the market for the produce before releasing a project for investment, investors can feel confident that they have bought a wealth-creating asset.

WHY INVEST IN AGRIBUSINESS?

The chief benefits of agribusiness investment are:

* Enhanced returns: An agribusiness investment will usually offer higher after-tax returns than can be gained from traditional asset classes, such as cash, fixed interest, property or shares.

* Tax-effectiveness: Where Australian Taxation Office (ATO) product rulings apply, agribusiness investments allows legitimate business costs, such as management and leasing fees, to be deductible providing extra flexibility in cash flow, debt management and taxation planning.

* Diversification: Being an "alternative" asset class, agribusiness investments offer an additional level of Diversification to a Portfolio spread across the traditional asset classes.

* Longterm returns: By definition, agribusiness projects are longterm investments. For example, bluegum forestry projects offer superannuation-style returns with a one-off lump sum in just about ten years; horticultural projects take five to six years to produce business Annuity income that exceed expenses, and can continue to pay income for a further 18 to 20 years.

HOW DO AGRIBUSINESS INVESTMENTS WORK?

An investor becomes a grower of a crop and the investment costs are usually treated as business expenses and are tax-deductible besides other income. Proceeds from the sale of the crop are treated as assessable income, when received. Thus, these managed agribusiness investments offer potentially high after tax returns while generating long term income streams.

More than 15,000 grower investors - people from all walks of life - have invested in various Timbercorp projects. This compares to more than $1.2 billion in funds under management and will produce more than $6 billion in crop proceeds over the next 20 years. Investors in these projects have invested for a number of reasons - to diversify their portfolios, increase their investment returns, to obtain an income stream and to make the best use of tax dollars.

Investment in Agriculture is now an ordinary managed investment option for investors with a focus on a number of key Australian agricultural commodities such as forestry and horticulture. A key feature of agribusiness investing is the tax effectual feature providing substantial tax deductions supported by an Australian Taxation Office Product Ruling. Agribusiness Investment is an alternative asset class that offers returns generated from a traditional income source. Agribusiness offers investors another level of diversification because it is not correlated with interest rates, sharemarkets, bonds or property markets.