Our emphasis on building partnerships provides opportunities for farmers and farming families in a host of different situations, including:
- For established family farming businesses with plans to expand, we can be a strategic partner by acquiring land that a farmer sources and wants to operate, and then lease the land back to the farmer under a multi-year contract. This allows farming families to grow their operations and avoid tying up too much capital or taking on too much debt.
- For senior operators, we can: (i) help a farmer make a gradual exit over time by buying some of their land and leasing it back; (ii) buy a farmer's land with the exception of the home quarter if the operator wants to remain living at home; or (iii) simply give a farmer the opportunity to exit at a good price in a clean and smooth transaction, with certainty of funds.
- For young farmers looking to get established, we are also able to provide support. Young farmers generally don't have the money or track record to access debt financing from traditional lenders. In certain cases, we have taken on the ownership of a farm, with the young farmer focusing on operating the land under a multi-year lease agreement.
We do not actively farm the land ourselves - we rent the land out to area farmers. Our lease agreements generally range from one to three years, with longer term leases considered on a case by case basis. The majority of our lease agreements are cash based, however we also enter into crop, revenue share, or hybrid leases with experienced operators.
Canterra Capital works with many intermediaries in the industry to identify assets and opportunities, ranging from realtors, agents, consultants, and auctioneers. Canterra Capital can buy farmland directly from the owner or via their representative. Current tenants interested in expanding are also a key source for farmland purchases.
Canterra has a global investment mandate focused on large-scale opportunities in leading agricultural regions in North America, Latin America, Australia and Eastern Europe. Canterra works with many intermediaries world-wide to identify assets and opportunities. Canterra is the single global farmland platform for its Limited Partners who, with a certainty of funds, are able to handle capital intensive transactions of all levels of complexity.