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russiafarmer

Posted 1/29/2012 02:37 (#2192319)
Subject: Finding Investors to farm in Russia

Voronezh, Russia

How and where do I find Investors who are looking to investing into Russian agriculture? Website, other contact?

Background

Living in Russia now for six year, I have gained quiet a bit of experience. I worked on several set ups from small to x-lagre and saw the pro and cons. Still like it here.

Case

The other day I was sitting with a Russian guy together who is the owner of a crop farm with about 24'000 acres who is near bancrupt. Knowing the region and the soil I started thinking, that this farm is almost a must have item because it's in the heart of the black soil country with a layer of about 6 feet. Have not near enough saving to buy and operate the farm.

So, how to find a good Investor (Investor's), who understands farming and is commited to a long term investmend in Russia? (Not a big fan of this investment funds)

Thank you for your ideas

Toby

Edited by russiafarmer 1/29/2012 02:38

Jorn

Posted 1/29/2012 04:15 (#2192331 - in reply to #2192319)
Subject: RE: Finding Investors to farm in Russia

Denmark

First question a serious investor will ask:
Why would a farmer with such a terrific farm be near bancrupt?
Jorn

russiafarmer

Posted 1/29/2012 05:20 (#2192341 - in reply to #2192331)
Subject: RE: Finding Investors to farm in Russia

Voronezh, Russia

Well, I wouldn't call the owner a farmer. He is a business man from town. Started in 2007-08 when the big agriculture bubble blew up here in Voronezh.

The way it looks to me, he took most the money out of the operation, just left enough to reinvest for seed and little pesticide for the next year. No amortisation made ore reserves built up.

5 year later the farm is run down and needs some reinvestment. The businessman seem to have other interests then the farm

Ron..NE ILL..10/48

Posted 1/29/2012 07:43 (#2192380 - in reply to #2192341)
Subject: RE: Finding Investors to farm in Russia

Chebanse, IL.....

What happened to ag there in '07-08?

russiafarmer

Posted 1/29/2012 10:15 (#2192595 - in reply to #2192380)
Subject: RE: Finding Investors to farm in Russia

Voronezh, Russia

As in the US, that have been the years where everybody was talking about the shortage of commodities and the prices skyrocked also in Russia. Simultanious the banks had huge amounts of money to give to the Investors (farmers). You remember, JD and CNH selling all the stuff to Russia. Everybody was buying (Investing). Then Lehman Bros. came and the bubble bursted. Wheat and everything else was a desaster in 2009.

Now some 5 years later, a lot of these farms need to start replace equipment and need some more cash. But money is tight like in the rest of Europe.

Newguy

Posted 1/29/2012 08:47 (#2192448 - in reply to #2192319)
Subject: RE: Finding Investors to farm in Russia

WC MN

You probably just reached thousands of slightly interested folks here.

If your serious, a well written detailed business plan is of high importance.

Rumors of corruption (russian mob like entity's) are rampant here. Would be wise to address issues like this.

My youth in the 80's I can remember listening to the markets on the radio, the one thing they always talked about was the russian crop. I can't help but think the prices of the last 4 years in commodity's will make area's like yours come back on line.

BigNorsk

Posted 1/29/2012 09:27 (#2192513 - in reply to #2192319)
Subject: RE: Finding Investors to farm in Russia

Rolla, ND

One thing I would point out is that if you are hunting for money, it's good to get familiar with the laws.

If just looking for one or two sugar daddies it's pretty wide open.

If you do something like form a limited partnership or a corporation or such it gets much more complicated.

Part of the trouble in finding money is they want to know everything, but if you aren't careful, they can use what you tell them and do it without you. So you need to be really clear on what you are bringing to the table and what it's going to cost them for having you.

There are also legal contracts that can be signed to at least somewhat protect oneself but everything increases by an order of magnitude when you are talking international.

The part about commitment to farming in Russia is the really hard part, most wealthy investors seem to have a real focused commitment to their cash and if they feel something is threatening that, they tend to cut and run.

russiafarmer

Posted 1/29/2012 10:23 (#2192611 - in reply to #2192513)
Subject: RE: Finding Investors to farm in Russia

Voronezh, Russia

Marvin, good points, thank you. I'm just at an early stage, don't have most the answers

With the amount of money you need maybe a lawyer who is familiar with set up like this.

I agree with you that I need to come up with something very good, to compete with a dollar who can go either to some Iowa farm land or to Russia.

russiafarmer

Posted 1/29/2012 10:28 (#2192620 - in reply to #2192513)
Subject: RE: Finding Investors to farm in Russia

Voronezh, Russia

DidSomeoneSayDonuts

Posted 1/29/2012 09:58 (#2192570 - in reply to #2192319)
Subject: Re: Finding Investors to farm in Russia

waaaay east central Colorado

Out of curiosity, what does land sell for in that part of the world, and what kind of private property rights are in place? I knew a guy who farmed in the US, then bought a "station" in Australia. He related that he could pump all the money he wanted to IN to Australia, but he couldn't get any back out. I never went into detail with him to see if he meant "very little" out, or "zero" out. But that thought always comes to mind when I hear of investment opportunities in other countries.

Also, for a little background, what kind of crops are grown in that region, how's access to grain shipping, what kind of livestock/alternative markets are available, stuff like that would be some of the things I'd like to know if I were looking to invest.

DRester

Posted 1/29/2012 10:04 (#2192580 - in reply to #2192570)
Subject: Re: Finding Investors to farm in Russia

Franklinton, LA

There are a few people still around who grew rice and sugarcane on nice profitable Cuban farms during the 1950s.

gene_champ

Posted 1/29/2012 10:11 (#2192591 - in reply to #2192319)
Subject: RE: Finding Investors to farm in Russia

NC Iowa

maybe you can form a partnership with the nigerians. they seem to be very good at getting investors.

Itchy

Posted 1/29/2012 10:16 (#2192596 - in reply to #2192319)
Subject: RE: Finding Investors to farm in Russia

SW Iowa

We Americans have private investor institutions called banks. You go in with a plan and a financial statement, 3-yrs of tax returns, and income projection
and you probably will get financing for your agriculture venture. Doesn't Russia have any agriculture banks? Beginning farmer loans?

Alberta Farmer

Posted 1/30/2012 17:26 (#2195348 - in reply to #2192596)
Subject: RE: Finding Investors to farm in Russia

West Central Alberta Coldest, wettest edge

We were told by a Russian businessman, who is importing livestock that right now the Russian government has very generous financing for farmers, with subsidized interest rates. Trying to encourage growth, not sure which sectors, but definitely in livestock. Not sure what it takes for collateral?

zmracing

Posted 1/29/2012 10:56 (#2192671 - in reply to #2192319)
Subject: RE: Finding Investors to farm in Russia

west central MN

I think it would be a good idea to look into setting up a farm owned LLC similar to the way a lot of farm owned ethanol plants are set up in this country. I can think of a few farmers around me that would probably like to invest in agriculture in another area were costs are more reasonable. I would think this board is a good place to start and see what comes out of it.

SHFarms

Posted 1/29/2012 11:07 (#2192689 - in reply to #2192319)
Subject: Re: Finding Investors to farm in Russia

ECIL

<p>Maybe I'm wrong but I believe you have to be a citizen to buy land there. So how would that work if one of the partners in the LLC were a citizen and the others were from the US?</p>

Edited by SHFarms 1/29/2012 11:11

easy

Posted 1/29/2012 16:32 (#2193226 - in reply to #2192319)
Subject: RE: Finding Investors to farm in Russia

russiafarmer,

Are you familiar with the beef cattle operation that was started in Voronezh a couple of years ago?

russiafarmer

Posted 1/29/2012 21:34 (#2193985 - in reply to #2193226)
Subject: RE: Finding Investors to farm in Russia

Voronezh, Russia

Yes. I don't know how many times a year Darrel Stevenson is still coming. But they are expanding in big steps. Just a couple month ago they started another 50'000 head unit.

Not far away from Voronezh on another site they started the finisher unit. Last week just drove by the first herd of Angus, comming from Montana.

But I can't tell you any numbers

pigfarmerj

Posted 1/29/2012 16:36 (#2193233 - in reply to #2192319)
Subject: Re: Finding Investors to farm in Russia

nw illinois

You could try and bounce ideas off this guy http://www.sasoy.com/Corzine.htm He set up an LLC for investors in Brazilian Agriculture.

Edited by pigfarmerj 1/29/2012 16:38

pigfarmerj

Posted 1/29/2012 16:40 (#2193240 - in reply to #2193233)
Subject: Re: Or..........

nw illinois

You could try getting us NATer's together and invest. I can see it now-- AgTalk Family Farms. But then again we could never agree on what color equipment to run, what corn is best to plant or if we really need in-floor heat in the shop!LOL

coup

Posted 1/29/2012 17:01 (#2193268 - in reply to #2193240)
Subject: Re: Or..........

USA

Alan Lash would probably want a cut of the action, if famiy farms was involved.

Sounds like new opportunity for some of his family farm blowups, at least cash rents would be cheaper

JD_Joe

Posted 1/30/2012 21:24 (#2195860 - in reply to #2193240)
Subject: Re: Or..........

Thompson ND / Grand Forks ND

pigfarmerj - 1/29/2012 03:40

You could try getting us NATer's together and invest. I can see it now-- AgTalk Family Farms. But then again we could never agree on what color equipment to run, what corn is best to plant or if we really need in-floor heat in the shop!LOL

Laughed my ass off....!

tooth and nail

Posted 1/29/2012 17:25 (#2193318 - in reply to #2192319)
Subject: Re: Finding Investors to farm in Russia

I bought some equip from a farmer/dealer who is shipping ALOT of equip to Ukraine , he also said they set up a Co. that bought 60,000 hectares , and working on investors for about a million more.

He said there is basically no infrastructure there to handle large scale production , and the city folks with the $$ have no desire to invest in farming , thus the opportunity for foreign investors .

flatlander6030

Posted 1/29/2012 23:18 (#2194297 - in reply to #2192319)
Subject: Re: Finding Investors to farm in Russia

Central Illinois

Russia farmer, send me an email, we have friends that own several equipment dealerships that ship a lot of equipment over there and would be interested in learning more about your situation.

Edited by flatlander6030 1/29/2012 23:18

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