Agricultural Risk Disclosure

This Agricultural Risk Disclosure explains the risks associated with agricultural activities conducted within Greenlands DRC. Agricultural projects, whether managed by Greenlands DRC, a third-party manager, or the member, are subject to a wide range of risks that may affect productivity, quality, and financial outcomes.

1. No Guarantee of Agricultural Income

All projections of agricultural yield, harvest volume, revenue, or profitability presented in any material are estimates based on assumptions and historical or comparative data. They are not guarantees of future results. Actual agricultural income may be lower than projected and may in some cases result in a loss. Agricultural outcomes are inherently variable and uncertain. You must not rely on any projected figure as a guarantee of the income you will receive.

2. Climate and Weather Risk

Agricultural activities are highly dependent on weather and climate conditions. Drought, excessive rainfall, floods, storms, temperature extremes, and changing climate patterns may damage crops, reduce yields, or destroy harvests. While irrigation and protective infrastructure may mitigate some risks, they cannot eliminate them. Climate change may increase the frequency and severity of adverse weather events.

3. Pest, Disease, and Weed Risk

Crops and livestock are susceptible to pests, diseases, and weeds that may reduce yield, quality, or cause total loss. Despite management practices including integrated pest management, biological controls, and crop protection products, outbreaks may occur and be difficult to control. The availability and effectiveness of crop protection products may be limited by regulation, supply, or resistance.

4. Market and Price Risk

Agricultural commodity prices are subject to significant fluctuation due to supply and demand, local and global market conditions, competition, quality standards, and the presence or absence of reliable buyers or off-take agreements. Prices received for agricultural produce may be lower than anticipated. Access to markets may be constrained by infrastructure, logistics, storage, and processing capacity. There is no guarantee that any market or buyer will be available at a profitable price.

5. Management and Operational Risk

Agricultural management requires expertise, timely decision-making, and consistent oversight. Poor management, delay in critical operations such as planting or harvesting, inadequate inputs, or failure to follow recommended practices may adversely affect results. Where Greenlands DRC or a third-party manager manages agricultural activities on behalf of a member, management performance cannot be guaranteed, and the member bears the risk of the agricultural outcome.

6. Input and Cost Risk

The cost of agricultural inputs including seeds, seedlings, fertilisers, crop protection products, labour, fuel, equipment, and water may increase beyond budgeted amounts. Input supply chains may be disrupted, affecting the availability and cost of essential materials. Increases in input costs may reduce or eliminate profitability.

7. Land, Soil, and Water Risk

Soil quality, fertility, and structure may vary and may degrade over time due to overuse, erosion, or poor management. Water availability for irrigation may be insufficient due to seasonal variation, depletion of sources, or competing demands. The suitability of land for a particular crop is not guaranteed and may change. Soil and water testing should be conducted before committing to specific agricultural activities.

8. Insurance

Agricultural insurance may be unavailable, limited in coverage, or prohibitively expensive in the region. You should not assume that agricultural losses will be covered by insurance. You should make independent enquiries about the availability and terms of agricultural insurance and consider whether self-insurance or other risk management strategies are appropriate.

This document is provided for informational purposes and does not constitute legal advice. Binding agreements and obligations are established solely by the formal legal documentation signed between the parties. In the event of any conflict, the signed legal documentation prevails. For any questions, contact legal@greenlandsdrc.com.