Agribusiness schemes raise 54% more
The agribusiness managed investment scheme (MIS) industry raised $1,024 million in 2004-05, up 54 per cent on 2003-04, according to an Australian Agribusiness Group (AAG) report.
Last year’s result follows a 93 per cent growth of capital in 2003-04, when $665 million was raised, lifting industry capital from $300 million in 2001-02.
The result exceeded the expectations of AAG managing director Marcus Elgin, who had predicted that the doubling of capital inflows of 2003-04 would be “tough to sustain in 2004-05 for a number of macro factors.”
Instead Elgin described 2004-05 as a “fabulous year for product managers. A number of projects sold out early — some even closed within a day of being released.”
The 2004-05 AAG report reveals there were 47 new investments released in 2004-05, compared to 42 in 2003-04.
Timber investments received 75 per cent of the investment dollars last year (76 per cent in 2003-04), with the balance relatively evenly spread amongst other agri categories
The capital invested in 2004-05 is expected to generate $4.3 billion of future assessable gross income at farm gate (up from $3.4 billion in 2003-04)
The average project investment was $63,000 per investor ($42,000 in 2003-04), with 56 per cent of investors gearing their investment.
Approximately 103,100 hectares (80,000 in 2003-04) of trees will be planted for timber production of which approximately 91,000 hectares will be for woodchip (71,000 in 2003-04).
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