Understanding the risks
Investing in agriculture carries real and material risk, including the risk of losing some or all of your capital. Before investing, please make sure you understand and accept the following.
- Nature risk
Weather, flooding, drought, pests, and disease can reduce or destroy a harvest.
- Price risk
The market prices of yam and vegetables fluctuate and can fall sharply.
- Yield risk
Actual yields, especially in early cycles, may fall short of targets.
- Cost and currency risk
Input costs such as fertiliser, fuel and labour, and foreign exchange movements, can rise and compress margins.
- Operational risk
Farming depends on execution, delays, theft, logistics failures, and management issues can affect returns.
- Liquidity risk
This is not a liquid investment, your capital is committed for the cycle and there may be no easy way to exit early.
- No guarantee
Target returns are illustrative and are not guaranteed. Past or projected performance is not a reliable indicator of future results.
Only invest what you can afford to have committed and, in a worst case, to lose. If you are unsure, seek independent financial advice. See also our Disclaimer.