June 21, 2013 at 1:07 am #2332Another JoeKeymaster
For those who would like to have more land and a greater degree of self-sufficiency, Freedom Orchard will also feature 20 -25 individually-owned working farms. These farms will be strictly organic agriculture of 20 hectares (~50 acres). For those who want to invest in farming as a passive investment, a 50/50 profit-sharing package will be offered by Freedom Orchard Organics. We will accomplish all of the work of growing and optimizing the timing and sales of crops while the property owner pays all costs on a monthly basis (approximately $180,000 USD per crop cycle, with around three crops per year). For those who prefer to have lower cost in agricultural investment, Freedom Orchard will lease the farmland to the passive investor for $7,000 USD per hectare per year, with a minimum farm size of ten hectares, and a minimum lease term of six months or two crop cycles (whichever is less).
Working farms can be purchased for $1,250,000 USD. The price of these farms includes necessary plowing, tilling, planting, fumigating and fertilizing with irrigation systems installed and secured water rights. For an additional $60,000 USD, a 70 square meter (753 square foot) caretaker’s residence can be built on the property. All owners will be required to sign a contract agreeing to strictly practice organic farming – whether or not they choose to contract with Freedom Orchard Organics. They must also agree not to subdivide their farms, without express written permission from Eyzaguirre y Cobin S.A.
ROI for farms in central Chile, which has a climate facilitating year-round agriculture, is very attractive. In fact, farms in the Curacaví area can produce two to three times the yields per crop cycle than other parts of central Chile. Chile, in general, is remarkably pest-free, and crop failures are quite rare compared to other places in the world. It really is a privileged place to farm! Plus, payback periods are incredibly short, often less than one year (even when splitting the profits with Freedom Orchard Organics). A sample of crops, typical yields and likely possible returns are seen in the following table. The figures are derived from our own experience, local and export price consultations, plus published sources from the Chilean government and a few Chilean universities.
Our agriculture team at Freedom Orchard Organics is expert in deciding what crops to plant and when, in order to maximize expected returns and properly diversify. With careful planning, pay-back periods of one or two years should be feasible. Chile offers much higher farming returns due to less intrusive government regulation, lower labor costs and more favorable growing conditions than in places like North America and Europe. In addition, with our seasons being the reverse of the northern hemisphere, we can garner upwards of 30% higher prices for our produce.
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