We at Agromanage AD believe that owning farmland has been a successful investment strategy for thousands of years, providing solid income, capital appreciation, and the security of owning real assets across economic cycles. As an investment, farmland has historically delivered attractive, diversified, inflation-hedged returns with both current cash flow and long term appreciation.

Going forward, we believe that the amount of available farmland will continue to decrease while the population continues to rise, thereby ensuring the appeal of the asset class over the long run.

Areas of interest: selected regions in Romania and Bulgaria.

 

Our strategy:

  • Investable segment of agriculture value chain: farmland, not farming
  • Severe fragmentation allows for low entrance prices in undeveloped regions
  • Sharp disparities in regional development in terms of presence of commercial farmers: a regional arbitrage opportunity
  • Accumulate acreage in undeveloped regions at attractive valuations before commercial farmers enter at scale
  • Stimulate rapid rental growth by attracting expansion of large scale commercial farmers into the region
  • Sell regional portfolios when competition between commercial farmers has intensified/rental values have risen
  • EU CAP direct subsidies provide strong income support to productive farmland rents, at all stages