Our Win-Win Model
Win - Win model
We believe every deal should be a win - win, how we acquire farms, how we structure our fees, and how we structure the funds mechanisms.
The economic fundamental's of aligning incentives
We believe every deal should be a win - win, how we acquire farms, how we structure our fees, and how we structure the funds mechanisms.
The economic fundamental's of aligning incentives
Incentive
Investor Upside
Fee
1%
Incentive
Farmer Upside
Fee
1%
Incentive
Seedling Upside
Fee
1%
Our strategy for picking farms
- Existing cash flow
- Room for production uplift and asset improvement
- Will respond well to next generation farming techiques
- Existing cash flow
- Room for production uplift and asset improvement
- Will respond well to next generation farming techiques
Our dd process
- Benchmark farm against others in similar region on high level figures
*If the farm passed the sniff test we:
- Evaluate if it would respond well to Next Generation Farming practices and if they would provide significant uplift
*then we
- Evaluate P&L, Heard data, Water rights, limits and costs
*If the farm makes it through this
- We establish where our offer needs to be to be worthwhile for investors and a fair price for the exiting vendor.
Looking to sell your farm? Find out more about how selling to Seedling could work well for your succession plan here.
- Benchmark farm against others in similar region on high level figures
*If the farm passed the sniff test we:
- Evaluate if it would respond well to Next Generation Farming practices and if they would provide significant uplift
*then we
- Evaluate P&L, Heard data, Water rights, limits and costs
*If the farm makes it through this
- We establish where our offer needs to be to be worthwhile for investors and a fair price for the exiting vendor.
Looking to sell your farm? Find out more about how selling to Seedling could work well for your succession plan here.
Our farm exit strategy
Our model allows Next Generation Farmers to buy back the fund over time. This is a win-win as the fund has an ever present liquidity mechinism, the fund is only active in the individual farms when there is a value ad period and during that time, there is a huge incentive for the farmer to perform at a high level.
We generally aim for this, however from time to time the GP may decide to exit specific properties if it no longer falls within our strategy.
Our model allows Next Generation Farmers to buy back the fund over time. This is a win-win as the fund has an ever present liquidity mechinism, the fund is only active in the individual farms when there is a value ad period and during that time, there is a huge incentive for the farmer to perform at a high level.
We generally aim for this, however from time to time the GP may decide to exit specific properties if it no longer falls within our strategy.