The absolute core of AAG Partners strategy is the belief that agricultural land in Australia needs to be utilised on the basis of its highest and best end-use. Water for agricultural purposes can be extracted from several sources with each water source having different risk spectrums and the land use needs to correlate with that risk. Rain-fed water sources are highly varied across Australia but can be tailored to alternative seasonal cropping varieties to suit the variability and timing of rainfall events. Surface water entitlements and ground water access provides a scalable alternative to rain-fed sources at a marginally increasing cost to purchase relative to underlying reliability.

Underpinned by water, the framework for achieving our core thesis revolves around a simple process:

• Developing land: By increasing farmland arable areas on specified assets, more scalable and refined revenue growth is achieved over the long term.

• Changing land: Converting inefficient lower performing farming operations across both land and water utilisation perspectives into their highest end uses.

• Improved farming techniques: Leveraging significant farmland management that brings proven, alternative, innovative farming techniques to bear. Using intensive farmland management proactively operating assets sustainably and efficiently.

Recent Australian agricultural market transactions have displayed significant interest from institutional buyers. Typically, institutions look for stable, secured low-risk agricultural assets for which they appear willing to pay above-market rates for access to this market. With traditional agricultural assets currently at yields of lower than 5%, the agricultural market landscape is ripe for the allocation of capital to larger scale agri-development projects to meet growing institutional demand.

AAG Partners holds sustainability at its core across all investment opportunities and seeks to deliver sustainable investment outcomes through four core pillars:

Environmental:

• Commitment to modern best practice farming techniques including:

  • Minimum till row cropping & stubble retention reducing the risk of erosion

  • Tramline GPS technology minimising soil compaction.

• Investment in renewable energy opportunities for farm operations.

• Humane control of feral animals and introduced weed species to protect native habitats.

• Preservation of sensitive conservation habitats including wetlands, protection of endangered flora and fauna, cultural and geological sites of significance.

• Sustainable management of soil health and maintenance of biodiversity

• Investment in market leading water efficiency measures, water capture, storage and deployment to minimise wastage and system losses.

Social:

• Committed to employee/contractor safety and welfare

• Creation of economic and employment opportunities for local (remote) communities

• Best practice animal welfare 'on farm' extending to preferential supply chain partners such as transport providers

• Contribute to domestic and global food supply and security

Governance:

• Participate in trials and best practice industry programmes.

• Responsible monitoring and application of agricultural chemicals and animal health products.

• Utilise industry standard quality control systems (MyBMP, ChemCert, BCI)

Carbon:

Carbon markets are rapidly developing. AAG Partners will investigate all viable carbon opportunities, implement recognised carbon farming practices & techniques, engage industry experts to pursue emission reduction opportunities and maximise carbon market opportunities available to each enterprise.