Ceres Partners seeks to provide the premier agricultural asset management fund to investors who otherwise would not have access to this profitable asset class which is uncorrelated with traditional assets. Ceres believes that the best means of investment is through direct ownership in a diversified managed portfolio of income producing farms that also allows investors to participate in land appreciation gains.
Ceres Partners believes that the purchase decision is critical and looks to identify undervalued farms that generate positive cash flows. Risk is reduced when a farm is bought at the right price with multiple sources of return. Ceres also looks to improve its farms which increases the long-term value of the property and compels a higher rent. Ceres Partners actively manages each farm and selects a proven farmer from its existing network of preferred producers who desire to expand as Ceres acquires more farmland. The result is partnership that benefits both the landowner/investor and the farmer.
Ceres Partners sees an increased role for hard assets in both individual and institutional investment portfolios. Income producing farmland is particularly attractive because it provides current income as well as the other benefits of hard assets. Farmland will benefit from the secular increase in demand for grain, environmental demand for alternative energy, and the impact of globalization. Factors that will benefit farmland investments include:
Global demographics increases demand for food
Growing Asian middle class’ demand for protein
Alternative energy demands for ethanol, biodiesel and wind
Declining global supply of arable land
U.S. has comparative advantage in agriculture
Declining dollar stimulates agricultural exports
Agriculture/Farmland uncorrelated with stocks and bonds