This agriculture management proposal outlines a three-phase process to source and develop farms for non-farming investors: (1) Initial consultation to determine needs, (2) Developing tailored solutions, (3) Implementation including sourcing, closing, and operating properties. The group offers three business models and charges fees based on closing price or an equity split. Additional costs may include travel and project expenses.
This agriculture management proposal outlines a three-phase process to source and develop farms for non-farming investors: (1) Initial consultation to determine needs, (2) Developing tailored solutions, (3) Implementation including sourcing, closing, and operating properties. The group offers three business models and charges fees based on closing price or an equity split. Additional costs may include travel and project expenses.
This agriculture management proposal outlines a three-phase process to source and develop farms for non-farming investors: (1) Initial consultation to determine needs, (2) Developing tailored solutions, (3) Implementation including sourcing, closing, and operating properties. The group offers three business models and charges fees based on closing price or an equity split. Additional costs may include travel and project expenses.
This agriculture management proposal outlines a three-phase process to source and develop farms for non-farming investors: (1) Initial consultation to determine needs, (2) Developing tailored solutions, (3) Implementation including sourcing, closing, and operating properties. The group offers three business models and charges fees based on closing price or an equity split. Additional costs may include travel and project expenses.
Prepared for: Michelle Nickelson and Buyers Our group [Sender.Company Tagline]
1. Cover Letter 2. Executive Summary 3. Process Phase 1: Initial Consultation Phase 2: Solution Model Phase 3: Implementation 4. About Group 5. Cost Summary & Additional Cost
1. Cover Letter 12/5/2016
Hello Michelle,
I am pleased to reach out to you via Andrew Durham to discuss a potential business development relationship or partnership between yourself and my conglomerate for an agricultural real estate and site/project site/project management . The crux of our position is that by connecting each of our respective networks, we can provide the necessary solutions to assist them all.
Review the following proposal,
proposal which outlines the details of several proposed relationships and project structures along with details regarding investor requirements. We believe you would be able to dictate the time, if any, that you want to spend on this pursuit. Primarily the only thing we would need from you is connection to interested buyers that you mentioned.
Please reach out to me via email or phone if you have any questions.
Thank you!
James Hortsman
2. Executive Summary Our group [Sender.Company Tagline]
Our team has significant experience in the United States agricultural real estate, management, and consulting space and has a successful track record with similar clients and projects. We pride ourselves on delivering only the best results for our clients so that they see an increase in productivity and appropriate scaling that has lasting results for their business needs.
What we do is provide a turn-key farming solution to non-farming investors. We draw on our expertise to address the buyer's need:
A. Source and vet potential farms, sites, and ranches that are and are not on the market. B. Secure the rights to high potential properties on behalf buyer. C. Management and oversight of farms to maximize crops, proteins, biofuels, etc. I. Taking product to market to sell at profit ; or II. Selling directly to buyer at cost.
Most farms and ranches lose the status of turn-key upon sale due to the fact that the Seller is generally the operator, our business files the void by meeting the needs of the Buyer. Our solution allows for the Buyer to expand their search for property to better suited land to meet their needs rather than finding a needle in haystack that turn-key farms would be.
We act on behalf of and/or in concert with Buyer to make sure their needs are met.
3. Process We will look to work closely with you to locate and develop farms and ranches based on the criteria for which you search to find whether it raising protein, growing crops, or biofuels. We will do this by establishing clear goals and a comprehensive solution based on Buyers's needs.
Our process to achieve this is as follows:
Phase 1: Initial Consultation
During this phase our team of experts will connect with any and all potential Buyers in order to determine criteria to meet their needs and establish a working structure to allow for use the greatest chances for successful acquisition of property and implementation of the property. We will develop a Our group [Sender.Company Tagline]
list of any and all solution possibilities based on this initial consultation.
Phase 2: Solution Model
After reviewing your criteria and outlining possible solutions, our team will work with yours to to implement the best solution. This approach allows us to tailor the solution specifically for Buyers's needs and ensure it does not lead to wasted efforts.
Generally, the business model would be structure on the following three scenarios:
1. Buyer and our group execute an exclusive agreement to buy properties and manage them on behalf of the Buyer. Our group would be compensated a percentage fee based on closing price of the property and a monthly fee for operation of the farm.
2. Buyer and our group incorporate a shell entity. The Buyer will be Majority shareholder; however, may be a silent partner should they choose. The entity would then acquire/own and manage the property again with our group acting as lead. (We find this option to work well when the Buyer doesn't want to have ownership of the land in the US)
3. Buyer contracts our group to be exclusive buyer to act on its behalf to source properties and the Buyer takes over upon close. Our group would be paid a percentage fee based off of the closing price.
We find option 1 and 2 to be most effective as it allows for open communication on our part and the Buyer doesn't ever need to step foot in the US should they choose.
Phase 3: Implementation Once we have both agreed upon a solution, our team will begin implementing the [Project] plan. We will first deliver a detailed outline of the plan with a timeline that includes and and all relevant costs and deliverables. Buyer would need to show proof of funds to our group.
While due dates will depend on, and be adjusted specifically for, your project, here is a general overview of what you can expect: Our group [Sender.Company Tagline]
Deliverable Timeline
Source and Vet properties 30-60 business days from sigining
Close on approve Properties* 60-90 business days from siging
Review current property and vet approvals need to 2-4 months from property Close maxamimize properties
Operation of Farm Seasonal
Harvest/End of Season October/November
As stated above, a time line with exact due dates will be delivered, and agreed upon, during Phase 2.
4. About Group
Our group will be composed of experts and consultants in all the necessary fields to form a team that is a twenty-first century management firm that thrives on the latest systems and processes for farm and ranch management. Our team members have experience managing projects across multiple industry verticals. We pride ourselves on our customers' satisfaction by delivering the best solutions in a cost effective and timely manner.
5. Cost Summary & Additional Cost
Cost per proposed business solution: Our group [Sender.Company Tagline]
2.1 Percentage based of Closing Purchase Price scaled
a. $0-1.9 million- 15% b. $2.0-4.9 million- 10% c. >$5.0 million- 7.5%
Monthly fee will be determined based of operational costs to run the property
2.2 65-35% equity split between Buyer and our group. Profit splits are per season. Cost will be bourn by Buyer.
2.3 Percentage based of Closing Purchase Price scaled
a. $0-1.9 million- 15% b. $2.0-4.9 million- 10% c. >$5.0 million- 7.5%
There may be additional costs incurred during [Project] that are not reflected in the above cost summary and may include the following:
Travel: Travel Our group shall be reimbursed by Buyers for all expenses incurred for necessary pre - approved travel. Expenses: Expenses Our group may incur costs relating to software implementation, the purchase of physical materials, or any other items that are not included in the management fee. Buyers shall reimburse for related expenses.
