Financial return is key for us, but we believe that quality investments bring value across various dimensions. Particularly in agriculture, which represents a lucrative investment sector with untapped potential. The fund is based on stable and conservative assets, secured by diversified investment tools. The fund's portfolio is structured to maximize the benefits of both the agricultural sector and the digitalization of assets, which continue to be utilized within the activities of APF GROUP. This strategy ensures both value growth and long-term regular income from investments.
No investment is without risk, and agriculture is no exception. The most important include:
Investments in agricultural land can require significant initial capital outlays, which may be a barrier for smaller investors.
Agriculture is exposed to risks associated with unpredictable natural phenomena such as floods, droughts, extreme weather, or pests. This can negatively impact production and returns.
Prices of agricultural commodities can be very volatile and influenced by factors such as global supply and demand, trade tariffs, or currency exchange rates.
Agricultural investments often require a longer time horizon before generating significant returns, which may deter investors seeking quick returns.
The agricultural sector is heavily regulated, and changes in agricultural policies, subsidies, or trade tariffs can affect the profitability of investments.
Given the high average age of agricultural landowners, there may be a shortage of young farmers to continue the business, which can threaten the continuity and stability of investments.
Investments in agricultural land can be less liquid compared to other assets, making it difficult to quickly realize investments when cash is needed.
The growing interest of investors in agricultural land can increase competition and thus land prices, which may reduce potential returns on investments.
Agricultural enterprises may face pressures to comply with ecological standards and sustainable practices, which can increase operating costs. Additionally, changes in land ownership can impact the social structure of rural areas and lead to resistance from local communities.