High-quality farmland Charles Bridgeford focuses on land with healthy and productive soil, historical record of strong crop yields, favourable climate conditions, and good location with regards to infrastructure.
Price discipline Charles Bridgeford avoids overpaying or entering into bidding contests, particularly if competitors hold a strategic advantage.
Attractive base case Investments must fulfill requirements on an “as is” basis without counting on potential value from add-on transactions to bolster investment merits.
Partner with proven operators Charles Bridgeford will lease land to proven operators with strong reputations in the farming community.
Crop insurance All lease terms include provisions for crop insurance and allowances for spot checks on land and farm operations.
Long-term view on tenant relationships Charles Bridgeford may accept a slightly lower near-term lease rate if Charles Bridgeford believes the tenant will act in a manner that is consistent with long-term land stewardship by maintaining and working to improve the productive value of the land over the term of the lease.
80/20 rule All farm operators must own at least 20% of their total land base, inclusive of land leased from Charles Bridgeford. For example, operators who own 2,000 acres would only be considered as tenants for up to 8,000 acres of farmland controlled by Charles Bridgeford. Charles Bridgeford will pursue ratios closer to 60/40 whenever possible.
Post-investment monitoring The investment team will actively monitor farmland in the portfolio, farm operators leasing the farmland, local areas, other nearby farm operators, local and regional weather conditions, and global commodity markets.
Familiarity Charles Bridgeford invests in known variables only, be they crop types, geographies, or communities.
No direct operational or commodity risk Charles Bridgeford will not directly operate acquired farmland and will negotiate lease agreements based on cash terms tied to dollars per acre per year. Payments will not be linked to commodity prices.
Modest leverage Farmland purchases may be financed with conservative amounts of leverage to enhance returns, but not so much as to distort the underlying risk-return profile of the asset.
Lease payments will be cash-based and not linked to commodity prices or crop productivity.
We will buy land on an "as is" basis, without taking into account the potential from capital movements.