Wide Open Agriculture Ltd (ASX:WOA) has entered into a 10-year farmland management agreement to manage a $4.35 million, 1,787 hectare property in Western Australia’s Shire of Kojonup.
Under the agreement, WOA will provide farmers in Kojonup with financial reporting, monitoring and administration under the company’s ‘4 Returns’ operational framework.
WOA will receive a 20% profit share and 20% capital appreciation over the life of the agreement, as well as gaining access to regeneratively produced oats, cereals, oilseed and sheep for potential marketing and distribution under its Food for Reasons brand.
The agreement was signed with Netherlands-based investors Handover B.V. and Wheatbelt-based regenerative farmers, and will be administered by WOA’s subsidiary Land for Reasons Pty Ltd.
Building a robust capital base
WOA chief executive officer Ben Cole said the agreement would establish a deal pathway for additional investment into low-risk assets that deliver a strong capital base for the company.
He said: “This agreement leverages the knowledge and experience gained from our existing land holding in East Kulinbah and is the next step in building a stable, robust capital base.
“It is a strong foundation for WOA to attract additional investors seeking low-risk, real asset opportunities that allow experienced, regenerative farmers to operate at scale in the Wheatbelt.
“The board of WOA believes that regenerative, diversified farming systems can deliver not just good financial outcomes, but also positive social and environmental returns.”
Unique ‘4 Returns’ framework
WOA is a regenerative food and agriculture group based in Western Australia’s Wheatbelt region.
Its vertically integrated food and agriculture business comprises land assets, protected cropping as well as its food brand Food for Reasons.
Subsidiary Land for Reasons manages Western Australian Wheatbelt farmland operated by experienced farmers applying regenerative farming practices.
The company operates under a ‘4 Returns’ framework, seeking to deliver measurable outcomes on financial, natural, social and inspirational returns.
WOA is the world’s first ‘4 Returns’ company to list on the ASX or any global stock exchange.