The fund acquires an existing or greenfield farm and selects and recommends a skilled operator to manage the farm and improve productivity while leasing it back to the appointed operator. At the end of the mandated fund term, the farm is sold, either rolling into a new fund, or to the current operator, or to a third party. Capital gain on land and lease income enters the fund’s cash flow, profits from the farm under fund ownership are also fed into the fund. Our investments improve the farm and that is the capital gain.
Good environmental and social governance is an integral part of UFF’s investment process. While the fund owns the farm they not only improve production but also address the social and environmental aspects ensuring a sustainable operation that results in lasting and positive change. Environment Social Governance (ESG) is assessed and monitored on all farms, according to the Worldbank’s International Finance Cooperation (IFC) Standards.