• Do you want to invest your money
    so that they keep their real value?

  • Do you want to own
    real and useful assets?

  • Are you not satisfied with interest rates
    offered by banks?

Why invest in Farmland?

Farmland is the foundation

  • It is the basic and irreplaceable factor of production
  • It is a tangible asset, not some financial construction
  • Its value is based on the ability to produce food (one cannot feed from gold)
  • In terms of international comparison Elbe basin and Moravia have highly fertile soil
  • The volume of arable land is diminishing in the Czech Republic as well as internationally, whilst the consumption of food is rising

Why Invest Right Now?

Czech farmland is a unique investment oportunity

Fragmented ownership

Current negotiating position of farmland owners is weak due to the lack of unity…

more less

Farmers in Profit

Czech agriculture was at a disadvantage before entering EU as subsidies in the EU were considerably higher…

more less

Rising food consumption

The real prices of agricultural commodities have maintained a high level since…

more less

Learn more

Attractive farmland purchase price

The price of Czech farmland is 3 – 13 times lower than it is in Western Europe. For comparison in 2015 we managed to purchase farmland at average price of app. 0.63 EUR/m2.

graph-prices

Why invest in Czech Farmland Fund?

The Fund reacts to market opportunity and handles risk and obstacles which an individual investor could only face with great difficulty on their own rom the distance it looks very simple. I buy farmland, rent it and that’s it. However no two plots are the same, nor are the two farmers… Slowly but surely factors like the following surface: quality of soil, erosion, fertility maintenance, legal risks, cadastral records, taxes, plot adjustments, subsidies etc. Eventually when one becomes familiar with these aspects, the law changes.

More so the market knowledge cannot be taught. Our investments are therefore based on the experience of a wide team of experts – agronomists, lawyers, geodesists, traders, soil experts, economists, tax specialists and many others. We are fully aware that not many investors have time to absorb all this detail. Nevertheless farmland shall be part of a well balanced investment portfolio. The ability of the Fund, now an important market player, to compete with large agricultural companies and to consolidate ownership of small farmland plots is equally important.

How we add value?

We buy thousands of low-rent small plots from individual owners

We unite small plots into larger ones and negotiate considerably better rental conditions.

The value of larger plots with better rental yield is growing. Hence the value of your unvestment is growing too.

Czech Farmland Fund

Establishment of the Czech Farmland Fundo opens the possibility to invest into Czech farmland to broad public practically hassle-free.

At first look, the farmland investing appears to be simple. Buy a plot, rent it out and it is done. But one plot is not comparable to another, same as farmers are not comparable. Sooner or later, issues such as soil quality, erosion, legal risks, cadastral evidence, taxes, land reforms, subsidies surface.

Once the investor gets somehow familiar with it, the legislation can change. And a strong local market knowledge cannot be studied. That is why our investment is backed by a team that combines knowledge and practical experience of agronoms, lawayers, geodets, traders, pedologists, economs and tax specialists.

Basic facts

Fund name Czech Farmland Fund
Investment horizont 6 years plus
Fund size > EUR 43 million. Fund is open to new investors.
Investment strategy Highly conservative. Farmland ownership as main investment target. Focused on the highest quality Czech arable land, mainly black fertile soil in Elbe basin area. Experienced farmland management. Targeting premium yield from ownership and geographical unification
Total targeted yield 4% per annum
Dividend yield Targeted payout of dividends is app. 1/3 of the total yield
Legal entity Independent open mutual fund for qualified investors under the umbrella of Český fond SICAV Plc, a self-managed investment fund with variable capital
Securities Freely transferrable bearer securities
Investment company Český fond SICAV Plc, self-managed investment fund
Reguator Maltese Financial Services Authority, Malta
Supervision Conseq Investment Management, a.s.

 

Häufigste Fragen

How do I decide whether investment in the Czech Farmland Fund is suitable for me?

Investing in farmland is suitable mainly for longterm, conservative investors. Those who invest in farmland often think in terms of owning an asset well into retirement and to pass such asset to their children or grandchildren through their inheritance. Farmland is a very stable investment that does not fluctuate in value.

What if higher inflation comes?

Farmland, just as other real assets, is typically a very good protection against inflation as it grows in value along with the inflation. In this respect, farmland is totally different from bank deposits, bonds or shares. Especially in the worst case scenario of uncontrolled hyperinflation, farmland offers security. Even if the government crosses out three digits on banknotes and devaluates the currency, farmland is still there as mankind always needs food.

What return shall I expect?

Rental yield on farmland purchased in the Fund is currently between 2-3%. Strong market position of the Fund and good profitability of farmers opens room for rental growth. Like in the past 3 years, we also expect increase of the price of the farmland itself, though not as strong as in 2015. Altogether we anticipate longterm return in the Fund in the region of 3 -5% p.a.

When can I join the Fund and when can I leave it?

One can invest in the Fund at any time. As the Fund is represented in the Czech market by Conseq Investment Management, you can buy shares of the Fund in the same fashion as shares of the other administrators which you can find on www.conseq.cz. Prices of farmland are currently growing so by investing sooner one can expect higher return than by investing sometime in the future. Should you wish to terminate your investment the Fund will buy your shares back. Please be aware that this is a long-term investment, minimum of 6 years. As the Fund investor protection is paramount, there is a 20% early redemption fee calculated on current market value for withdrawals made within the first five years of the investment. After this five year initial period there is of course no redemption fee charged.

Foreign exchange risks

  • The price of the fond units as well as the underlying farmland are quoted in Czech crowns (“CZK”). Investors from outside the Czech Republic are thus exposed to the FX risk. We believe that the risk is limited.
  • The Czech Republic joined the European Union in 2004. Its GDP per capita at USD 29.9 thousand is higher than that of any other state that joined the EU in 2004 or later, and higher than that of Portugal and Greece. The average EU GDP per capita is USD 38.3 thousand.
  • The public debt is low at 29.9% of GDP (compare with 69.5% in Germany). The sovereign rating is AA-.
  • The local currency, CZK, has been stable in the range of CZK 24-25 per Euro in the past years but the Czech National Bank has intervened in December 2013 to weaken the currency to CZK 27.5 per EUR where it has been since then. See chart.

Do you want to learn more?