Why does Commstream Exist?
Australian farmers have a number of frustrations with existing finance options...
- Funding is not available when required or is inflexible
- Farmers don't want more debt and most don't want to sell equity in the family business
- Traditional finance compounds when times are tough, for example, paying interest and principle in drought
- Big companies don't care and don't understand family farmers
- The Australian farming sector already has too much debt and more is not the answer!
CommStream will provide a credible alternative source of capital to fund farm growth and on-farm productivity. We will offer attractive funding solutions to progressive farmers to contribute toward solving the production requirement to feed the rapidly growing global population.
“Go long agriculture and water and go to the beach!”
“Put those investments in the bottom drawer for 10 years.”
“It's unlike anything else we have in the world.”
Larry Fink, Founder, BLACKROCK
(Largest fund manager in the world with $4.4 trillion funds under management)
Agricultural Commodity Streaming
CommStream’s business model involves entering into long-term commodity off-take agreements (“Streaming Contracts”) through which farmers would be paid an upfront cash payment as well as a pre-determined delivery payment for:
- A fixed tonnage of future commodity production for 5 to 10 years (less than 20% annual production)
- A share in the farmer’s increased production above a benchmark yield
- Price upside sharing with the farmer above a benchmark sale price
CommStream plans to build a portfolio of high quality and diversified agricultural commodities including cereal grains, pulses, oilseeds, cotton and livestock. CommStream is targeting long-term streaming contracts with farmers major, high value commodity producing regions in Australia.