Flipping Farms

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By Dwain Duxson

Flipping Farms - I read the AgJournal (Weekly Times) liftout story on goFarm, the Agricultural Investment company with a growing and diverse portfolio of Ag assets. I will link it here, but you must be subscribed to the Weekly Times to read it. 

It's an interesting story about a Corporate like Farming structure that is heading away from the traditional Crop/Sheep/Cattle operations and more into Nuts, Tomatoes, Citrus, etc or what they are calling higher-value Crops. They have also gathered $300 million dollars worth of Water entitlements to fuel those Crops.

We have all heard of flipping houses, where you buy, then renovate and sell for a tidy profit, well, hopefully. Well, these guys are doing the same with Farms. They buy up smaller holdings, group them up, upgrade the infrastructure and Water, and revalue the Property once it's been renovated. They have institutional Investors, so I am sure there comes a point where they exit a group of these Properties and the attached Water at multiples of what they bought them at. That's the game.

But like us, they are still dealing in commodities, and I'd argue that their play is riskier than the average Family Farm. Water and the price of it is the key to their prosperity. They have managed to grow to a value of $1.1 billion in a short period, which is an amazing effort. Could renovating and eventually flipping a group of Farms be a new trend for Australian Agriculture? It could be a great way to update our Farm infrastructure, which is needed. Some of the Corporates have done it well, as it normally requires investment dollars. Thoughts? Reply to dwaind@farmtender.com.au

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