Cash crop

In what’s believed to be a world first, small-scale Australian investors are putting money into farm production, placing needed cash in the pockets of farmers.

Story Ken Eastwood  Photo TasAgCo

What started as the simplest idea – a bloke who wanted to buy a few steers – has, in just 2 years, turned into Australia’s most diversified mixed farming operation. IIF (Invest In Farming) is believed to be the only investment scheme of its type in the world, in which small-scale investors join a cooperative so they can build their own diverse ‘virtual’ farm, while giving real money to real farmers. Instead of being tied up in farmland, the money is invested in primary production – young lambs, a crop being sown, bee hives, oyster spat – and when the products go to market, the farmer and investors split the profit. The cash injection often helps farmers at a time when cash reserves are low, and most of the time, everyone seems to win.

Founder and inventor of the system Nathan MacPhee moved to Mansfield, Vic, 6 years ago when he became sick of a high-flying city finance career. Initially he just enjoyed living on his 8ha property and being a “better parent”, but then got chatting to local farmers. “For a moment I thought I could become a farmer – it’s a noble pursuit,” he says. But a lack of farming experience got him thinking further. “If I can’t buy a farm, perhaps I could buy a cow on someone else’s farm. In fact, could I build an investment portfolio of cattle? It’s an appreciating asset – you might buy at $1000 and sell for $1500 twelve months later.”

Nathan began developing the idea and completed a certificate of livestock management, “mainly so I wouldn’t make a fool of myself when talking with farmers”. He then went to Beef Week in 2021 and brought his idea up with the then president of the National Farmers’ Federation, Fiona Simson. “She said, ‘Have you thought beyond cattle? There are other parts of ag that need investment.’”