Why invest in Australian Agriculture?

Investing in Australian Agribusiness offers diversification, long-term returns and tax effectiveness.  Agribusiness Managed Investment Schemes (MIS) cover a wide range of agricultural commodities including horticulture and forestry.

Agribusiness is an alternative investment class to include in your portfolio as agribusiness combines well with shares, fixed interest and property investments. 

AGRIBUSINESS OFFERS INVESTORS…
Enhanced returns
An agribusiness investment offers the possibility of substantially higher after-tax returns than can be obtained from traditional asset classes, such as cash, fixed interest, property or shares.

Diversification
Agribusiness is a unique asset class that is weakly correlated with the stock, bond and property markets, and thus offers investors another level of diversification to a portfolio spread across these asset classes.

Choice of long-term compounded returns or regular income
Some agribusiness projects, for example forestry projects, are long-term investments offering superannuation-style returns with a one-off lump sum from harvesting in approximately ten years. Others, for example horticultural projects, can produce income in the first year, and continue to pay annuity income for ten to 20 years.

Tax-effectiveness
Agribusiness investments offer substantial up-front tax benefits, supported by Australian Taxation Office (ATO) product rulings, providing more flexibility in cash flow, debt management and taxation planning.

Inflation hedge
Investing money upfront and receiving the income on that investment in future dollar values can negate the effect of inflation.

Although many people associate agribusiness with investors in a high tax bracket reducing their tax liability through investment in a managed investment scheme (MIS), the reality is that agribusiness is appropriate for investors who are seeking to build long-term wealth in an asset class that is not correlated (in terms of movements in market prices and returns) with the other major asset classes.

Click here to download Rewards Group Guide to Investment in Agribusiness.  You should seek professional advice before investing in agribusiness managed investment schemes.