Grain Co-Production is effectively an extension to the principals of share farming. Investors provide the funds to grow wheat and / or barley crops and farmers provide the land, equipment, inputs and expertise. The risks and rewards of growing the crop are shared by the farmer and investor with farmers rewarded for outperformance.

Grain Co-Production is effectively a cash-flow and income protection product and is the only product of its kind available to Australian grain farmers.
 

HOW CAN GRAIN CO-PRODUCTION BENEFIT YOU?

Income Protection

Grain Co-Production provides farmers with a guaranteed amount of income on a contracted area of their farm each season. The majority of the payment to farmers is made at seeding time, underwriting their cash-flow regardless of the season.
 
Should the contracted crops underperform or fail then the investors incur that loss, not the farmers. As such the investor’s funds provide a form of income protection to the farmer by
sharing the risk of the crop with the investor. AACL contracts crops in many different locations and pools the result in order to manage the investors risk of growing grain in one location.
 
In the better seasons the farmer will give up an amount of income to the investors’, however the farmer will experience more consistent year by year cash-flow over the long term (see example below). By stabilising cash-flow, regardless of the season, Grain Co-Production enables the farmer to make more proactive decisions knowing that their downside risk is effectively covered.

 

Reduced Peak Debt / Leveraging

The Grain Co-Production funds provided by investors increase the farmer’s cash-flow and protect their farm equity.
 
Grain Co-Production enables farmers to reduce their level of peak debt and better utilise their borrowing capacity by guaranteeing cash-flow regardless of the season.


How To Apply

To find out more about Grain Co-Production register your interest here or contact us.