Access farmland value like never before with Farmolio’s hand-selected properties.
Our due diligence for countries is based on three core factors: market access, availability of natural resources, and local agricultural capabilities. Market access refers to logistical and legal considerations such as free trade agreements, shipping lanes, times to market, and other factors related to the movement of goods. Availability of natural resources takes into account factors such as average precipitation levels, balance of sunlight and rainfall, altitude, humidity, soil quality, and other agronomic conditions. Local agricultural capabilities include the availability of agriculture-related infrastructure and equipment, a trained labor force with expertise in certain crop types, and a knowledge base of best practices.Over its history, Farmfolio has assessed opportunities in a wide range of regions, including North and South America, Europe, and Southeast Asia. But of all the countries that we have investigated, none possess the unique qualities of Colombia. With its access to North American markets by both Atlantic and Pacific sea lanes, its ideal tropical climate, its plentiful fresh water, and its well-established agricultural traditions, Colombia is a prime location for long-term farmland investment. Although Farmfolio and its subsidiaries trade fruit from other origins apart from Colombia, for the immediate future, Colombia is the company’s current focus for agribusiness development.
Farms are selected for the LOTs program through an extensive due diligence process led by Farmfolio’s in-house land assessment team, in collaboration with the company’s third-party auditors, surveyors, agronomists, and other service providers. This process involves a series of multidisciplinary assessment tools such as the verification of documents and titles, the measuring of key agronomic indicators, and the analysis of proximity to existing and future infrastructure. LOTs farms are drawn from Farmfolio’s land database, which spans thousands of acres of potential acquisitions. The production characteristics of LOTs farms are verified by data collected at packhouse facilities controlled by Farmfolio, which allows us to gather precise data on quality, volume, and performance at shelf level. If a farm’s production meets the desired standards, it is included in the pipeline of potential acquisitions. Standards include adequate fruit size, juice content, BRIX level, weight, coloration, presence of defects, and shelf life.
Harvest proceeds are forecasted based on data collected by Farmfolio and its affiliates over the past decade. There are several key metrics involved in this calculation: the age of the trees, the tree count of the farm, the amount of fruit produced per tree, the price forecasting of fruit per kilogram, the anticipated ratio of export-quality to domestic-quality fruit, and other factors influencing revenue projections. Costs are also forecasted on a highly granular level, taking into account the usage of inputs such as fertilizers and pesticides as well as labor, fuel, transport, and infrastructure maintenance.
Farmfolio is focused on permanent crops or tree crops, which provide higher potential for appreciation and cash flow combined with lower risk in terms of harvest timings and environmental impact. Tree crops like Tahiti lime and coconut harvest all year long, which reduces the risk of losing profitability to a single bad harvest. When choosing a product category for allocation, Farmfolio assesses a wide variety of factors, inducing market forecasts, agronomical suitability, logistical access, and more. Tahiti lime has been selected for the current series of LOT opportunities for several reasons. First, U.S. imports currently rely too heavily on production from Mexico, which has created the need for alternative suppliers. Second, Colombia possesses ideal logistical access to many regions in North America and beyond thanks to its numerous coastal cities and shipping lanes. Third, Colombia features unique climatic conditions that allow it to harvest year-round, offering yet another competitive advantage over Mexico. Overall, Farmfolio looks for niche, competitive opportunities with high growth potential by developing new regions of origin for in-demand product categories.
You are free to sell your LOT at any time you wish. Farmfolio can provide pricing recommendations based on projected future cash flows of the property, however, you are free to list your LOT at any price of your choosing. Farmfolio’s network provides listing services and marketing on your behalf, first to its preferred network and then to the public. When a buyer is found, there is currently a $250 administrative fee and a standard 3% real estate commission to process the sale. These fees are subject to change.
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