Citola Blog
You Can Run - But That Won't Hide The Problem
Running away from a problem is no way to solve it. Here at Citola, we’ve noticed one or two vehicles in the timber space that purport to provide a solution for troubled Australian farmers (all Aussie farmers are either “troubled” or in debt, or both!).
The offerings we’re thinking of promote the benefits of economies of scale. The basic idea is to aggregate lots of land, get the farmers out of debt through buying and leasing back, and improve profitability. The investor has the assets and the income from the former-owners (the tenant farmers).
The prevailing trend of current thought seems to be to assist farmers through the drought and their present difficulties by buying them out.
This blog is not a product news release. But we think it’s fair to say that the offering we’re developing is far more robust than anything we’ve seen on the Aussie market.
We’ve got a take on the tax advantages for UK and international investors that other offerings scarcely hint at. In the case of the UK investor, the plays against inheritance and capital taxes are particularly strong.
We also believe that what we’re unrolling (soon – sorry to tease) will prove to be very much at the premium end of value-added timber products (these have significantly higher margins than traditional plantation products).
And, of course, it’s all designed to work on environmental level. We’re designing a timber product that will be produced through environmentally friendly processes to relieve the pressure on native Australian forests. That fact also happens to have the advantage of increasing marketability.
At the heart of it all is the land-management magic. But of that, more later.
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