Russia-based agricultural investment company Irrico has announced a third investor – private equity group ADM Capital. Since its inception last year Irrico has acquired two farms totaling 22,000 hectares, is close to closing on another deal which would bring the company’s farmland portfolio to 30,000 hectares and plans to have 40,000 hectares by mid-2014. Over the next three years Irrico plans to invest $250 million into land, machinery, irrigation systems and storage developing farming properties in southern Russia. Irrico is implementing modern farming practices and installing pivot irrigation systems to realize four times the production from its properties as compared to before the company owned them. The increased profits are allowing Irrico to begin planting higher margin crops such as soybeans and corn. By 2018 the company aims to have achieved the scale to permit a liquidity event at that time.
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