• 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?

Our values

Český fond půdy is an investment:

Sustainable

The goal is the natural long term growth.

The vision of quick double profit is not a priority for us. We look forward beyond next few months…

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Fulfilling basic needs

Rather than next new kind of luxury or entertainment.

Many companies focused on fleeting matters will not survive this crisis. Farmland will survive the crisis just fine. It does not need our human existence. Invest with us because everybody has to eat…

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Careful to the nature

Vegetables produced at home don’t have to travel across half the continent.

We expand irrigated farmland and increase the volume of vegetables and potatoes produced in Czech Republic. Transport of potatoes and carrot across half the continent will not help the nature…

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Natural

Plants belong to the land, rather than into hydroponics.

We avoid offers to finance production of salads in industrial halls lit by LED technology…

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Tangible

Not virtual

The epidemics will bring economic crisis and after that the financial one is in the making because most of the countries have not solved the 2008 debt crisis by real reduction of debts…

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Local

Shouldn’t we decrease the globalization a bit?

Globalization is amazing and brings significant progress. But complex supply chains are also very fragile and it is the property we really don’t need for fulfillment of basic needs…

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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 do 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 64 million. Fund is open to new investors.
Average yield from inception 9,1 % p.a.
Average yield last 12 months 5,7 % p.a.
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.
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.

 

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…

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Farmers in profit

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

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Monetary experiment

The world is experiencing an unprecedented monetary experiment: central banks are inflating their balance sheets, more than half of eurozone bonds carry negative interest yield, prices of shares, commercial real estate and rentals has soared to the record levels…

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Frequently asked questions

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%. 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. 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 39.8 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 39.3 thousand.
  • The public debt is low at 32.6% of GDP (compare with 61.9% in Germany). The sovereign rating is AA-.
  • The local currency, CZK, has been stable in the range of CZK 25-26 per Euro in the past years. See chart.

Do you want to learn more?