For onion and potato cultivation
500 hectares of arable land is looking for a farmer
A non-agricultural investor is looking for a manager or company to run his newly acquired 500 hectare arable farm. This concerns first-class soil that is suitable for, among other things, the cultivation of potatoes and onions. Land brokers call it a unique transaction and possibly an opportunity for those who want to tackle arable farming in a big way.
Anyone who has become enthusiastic after reading this text should realize that it concerns a company in the county of Cambridgeshire, England. A short 8 hour drive from Lelystad. In exchange for emigrating, you get leadership and free rein over more than 500 hectares (1.250 acre) grade 1 and 2 farmland, writes Farmer's Weekly.
14,25
million euros
In the days before Christmas, an unknown non-agricultural investor from the European continent bought the company in one sale. Real estate agent Stephen Hall of real estate agency Brown & Co calls it a unique transaction. It is one of the largest companies traded on the island in the last five years. Hall is now – on behalf of investor Mister X – looking for an entrepreneur who wants to run it.
Farcet Farms, as the company is called, consists of three farms divided into blocks of 195, 210 and 106 hectares. A total of 1.650 tons of grain storage is available, 1.400 tons of mechanically cooled box storage and 500 tons of bulk storage for onions. In addition, two irrigation reservoirs have been constructed with 120.000 cubic meters of water content and a network of pipes to the plots.
Estate agency Strutt & Parker sold the company at the end of 2016 for an amount that was around the asking price of 12,5 million pounds. Converted 14,25 million euros. The three companies were actually for sale separately, but the investor was more interested in one deal. For the individual companies, the broker asked amounts between 4,5 and 5,7 million euros. The company attracted a lot of attention from investors inside and outside the UK.
The brand new owner is looking for a business partner who wants to farm the company on contract. If that does not work, separate partners will be sought for the three companies. In the first place, a contract for two or three years is on the table, with the intention of making long-term agreements after that period. The soil mainly consists of a thick peat layer on which onions, sugar beet and grain are grown. The average onion yield is 40 tons/ha and that of wheat at 10 tons/ha. The irrigation makes it possible to grow many different crops including potatoes, carrots and leeks, as has been done in the past.
Broker Hall thinks there is a lot of interest because grain prices are at an all-time low and arable farmers are turning to other crops. However, mechanization is not present, so that mainly established agricultural entrepreneurs or contractors are eligible.
Since July 2015, the pound has fallen in value by nearly 20 percent. In the same period, the average land price of arable land in eastern England decreased by almost 2.200 euros per hectare. The company's buyer was especially interested when the pound was low and the euro strong. Despite Brexit, according to the broker, there is still undiminished interest in land by foreign investors. He calculates with a return of 2 percent per year, which is offset by a low risk. 'That may not be much, but if you invest money in Central or Eastern Europe you are not much better off.'
Niels van der Boom
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