Grain Co-Production: A good idea from "downunder"

Farmers Info - AACL
Australian farms have a new option for funding production, Grain Co-Production. An firm in Australia has created an investment that allows investors to put money right in the production game, complete with all the risks and rewards. And it looks like a win win situation so far.


The basic idea with Australian Agricultural Contract LTD (AACL) is Grain Co-Production (GCP). Grain Co-Production involves:

• A pool of investment money
• AACL pays farms to grow wheat
• AACL markets the production
• AACL assume a lot of risk (thereby reducing the farms risk)
• AACL has made 10% for investors
• AACL funds based on average production
• AACL pays 90% of production above average back to the farm

This looks to have advantages over loans or using credit services. GPC's would not totally replace credit. Credit Unions, Banks, FCC, MACC and various ag. credit services will always play important roles in farming. But GPC's looks like a real good idea. Kind of a hybrid insurance, loan and production contract roled into one.

There has to be some strings attached: I'm sure AACL won't just take any farm or any field from any farm, there will be strings attached. As an example they won't fund more than 50% of wheat production from a single farm.

I was at the in-laws when I read about Australian Agricultural Contract LTD. In the Country Guide. I Googled it as soon as I got home.

Check the link and spread the word. Grain Co-Production could be a good option in Canada.

I have to go catch the last inning (Mets vs Cards)

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