increased NOI, strategic capex

5,000 acre irrigated farm

High Plains Region

United States

A top peanut and cotton farm experienced declining revenues, in an otherwise stable commodity price environment. Highfield was assigned to the project.

Third party hydrologic analysis revealed an above average underground water resource; however, the power and irrigation infrastructure were under-equipped to physically and economically optimize water usage. Highfield researched possible solutions and, with the Landowner, collaborated toward a strategic solution.

SOLUTION: Expand the list of resources. Sustainably increase utilization. 

  • Account for and measure available resources.
  • Collaborate, plan with Landowner and tenants on the correct combination of resource utilization.
  • Identify and retain SME's, contractors and utility providers. Execute.  

Overhead utilities, available from the neighboring state's cooperative, were brought in across the state line and constructed on the farm. All future maintenance was annexed by the cooperative. Additionally, a large commercial irrigation pipeline was installed across the farm, allowing for the efficient delivery and accurate pressurized placement of a large volume of water, anywhere on the farm.

RESULT:  Reduced Volatility in Expenses, Increased Production. Irrigation pumping and maintenance costs were reduced by over 50%. Rents stabilized and increased in excess of 30%. Landowner's Annual Return on Equity for the redevelopment project was >25%.

usda certified organic

6,000 acre farm and ranch

Southern Coastal Region

United States

A 6,000 acre traditional gulf coast rice farm and cattle ranch, possessing a strong mix of soil type and drainage.  The farm experienced a significant reduction of income due to an abrupt transition away from rice production.

Highfield was assigned to the project by the landowner's west coast family office. A detailed strategic review of the property revealed that resources were in-place for an accelerated conversion to USDA certified organic cropland. 

SOLUTION:  De-Risk, Redevelop and Break the Inertia. 

  • In depth physical assessment of the farmland
  • DCF & Cost benefit analysis of the USDA Certified Organic crop production. 
  • Collaborative land and capital planning with Landowner.
  • Blended direct farming and cash rental, along the conversion timeline.
  • Identify start date and execute.  

RESULT: Increased Productivity. 

  • Increased crop production cash value (per unit and in total). 
  • Highest historic rental rate.
  • Increased margins for Landowner and farmer.
  • Sustainability. Cover crop and crop residue, undamaged by hurricane Harvey. 
  • Peace of Mind. Evidence of steadily increasing productivity.