The Primary Yield Cropping Project No 2 (Cropping Project) will grow a diverse range of crops that will participate in the domestic and international markets for grain and fibre crops. According to the Australian Wheat Board 2004, total grain production in Australia averages approximately 35-40 million tonnes each year with an estimated value of A$ 8-10 billion. The grains industry accounts for 25% of the total value of agricultural production in Australia.

 

The Project

The initial cost to invest in the Project is the Initial Crop Fee of $170.50 for each Lot (being half hectare), with a minimum of 30 Lots per investor. For example the Initial Crop Fee for 30 Lots is $5,115 (inc GST). The project will run for 7 years with income generated every year.

• Investors in the Cropping Project will become Farmers by leasing land ("Lots") from Primary Yield and by appointing Primary Yield to establish, maintain, harvest and sell their annual crops over a period of approximately 7 years.
• A diverse range of crops, primarily wheat, barley, canola, chickpeas and sorghum will be grown although other opportunity crops may be grown depending on weather conditions, markets and the performance of the crop.
• The crops will be grown on geographically diverse properties in Australia's recognised grain growing regions.
• Crops grown will be rotated over the life of the Cropping Project and across properties in response to the weather, market conditions and the performance of the crops.
• This diversification is designed to minimise climatic risk and other location related risks while managing properties to maximise grain yields.
• Crops will be grown and harvested annually with crop sales generating expected proceeds to Farmers each year. In fact, it is anticipated that a revenue stream will be generated within eight months of sowing the crops.
• When selling their grain, Farmers will pool their harvests with other investors in the Cropping Project in order to spread risk and maximise returns

Finance Options

 

 

 

Features

Up to 6% cash rebate (see below)

$5,115 application

7 year term

100% tax deduction

Tax deduction for interest expense if finance option taken

Income from year 1

Closes 15th June 2006

 

 

Commissions & Cash Rebates

With tax effective investments we will receive a brokerage payment consisting of a 'commission' & 'marketing allowance' which is paid from the company that you invest with.  It is not deducted from your invested funds. With regards to Primary Yield Cropping Project, Fundbroker will receive an 8% commission and a 0% marketing allowance, making a total brokerage of 8% of the amount invested.  We will provide a cash commission rebate as a percentage of the funds you invest as shown in the table below:

 

 

The cash rebate is paid to you as soon as we receive our commission payment ex GST.

 

 

Further Information

For further information please download any of the following files or right click on the button and 'save target as' to download to your computer (all files are in *pdf format):

 

 

 

 

 

IMPORTANT : This information has been prepared without taking into account your investment objectives, financial situation and particular needs. National Financial Solutions Pty Ltd (the authorising licensee) makes no recommendations as to the merits of any investment opportunity referred to on this site or via email correspondence. All indications of performance returns are historical and can not be relied upon as an indicator for future performance. Any investment decision in the products listed is entirely yours. NFS bears no responsibility for the appropriateness of the investment to your circumstances.  NFS will not be held responsible for the performance or security of any investment going forward. Furthermore NFS recommends that you seek advice from an independent person as to the appropriateness of any investment that is placed through our service.

With all of these types of investments you should seek independent taxation advice to determine whether this investment suits your circumstances. Please read the important information section.

By listing this investment on our site we are by no means endorsing this investment, manager or product.

* IRR upper range from independent research report