Many farmers seek to diversify their sources of income to offset the risks of farming. Additional sources of income, such as agritourism, production of additional agricultural products (e.g., preserves), renting land or buildings, selling timber or renewable energy, can make an important contribution to the farm household economy. By doing so, farmers can better cope with fluctuations in commodity prices, natural disasters or regulatory changes that may affect their primary source of income. In addition, having multiple sources of income can enable farm development, such as through infrastructure upgrades or investment in new technologies, which in turn can increase the profitability of farming operations in the long term.

What opportunities for additional financing does the farm have?

A farm that seeks additional financing because of a desire to expand or as a result of a difficult financial situation can take steps to secure its business and continue to grow. There are a number of options that a farm can consider in this context, including both short-term and long-term strategies:

1. Land rental: Renting agricultural land to other farmers or companies can generate steady income without active management. The upside is definitely a steady passive income. Such an agreement, however, is subject to the risk of dissolution at any time. In addition, the tenant may become insolvent and stop paying his obligations. This form of raising additional funds, however, significantly
   limits the production capacity of the farm, since the agricultural land is reduced by the rented land.
2. Loans from financial institutions: Loans are another way to subsidize a farm. A large injection of cash can save a farm in a difficult situation or support its development. When deciding on a loan, however, it is important to remember that it carries with it the obligation to pay interest on each zloty borrowed.
3. Investment in renewable energy: Investing in photovoltaic, wind or biogas plants on a farm can generate passive income from the production of electricity. Such investments, however, first require a large financial investment before they begin to generate the expected return.
4. Lease of land for telecommunications mast: sale of lease removes the risk
   of termination from the tenant and allows the farm to capitalize profits from such an agreement. However, it is important to remember that such a lease can be terminated at any time due to various variables, which carries certain risks for the landowner. The reason for termination of a lease agreement can be for example, a change in the business strategy of a telecommunications operator, regulatory changes in the telecommunications sector, as well as decisions to upgrade or decommission existing infrastructure. Therefore, despite the potential financial benefits of leasing
   land for telecommunications masts, one should be aware of the risks associated with such
   an agreement and make investment decisions with this in mind.

The tenant’s reasons for terminating the lease may vary:

Technological changes: technological advances can have a significant impact on the requirements for
telecommunications infrastructure. In the event that there is a need to upgrade or replace an existing telecommunications mast with newer technology, the lessee may decide to terminate its lease to adapt to the new technical requirements. Such changes may be caused, for example, by the introduction of new safety or performance standards, which may require adapting the infrastructure to new technological conditions. As a result, farms that benefit from lease agreements for telecommunications masts
may be exposed to risks associated with such changes.

Changes in network development plans: Telecommunications companies may be subject to constant changes in their network development plans in response to dynamic market, technological and
regulatory needs. If a change in the network development strategy requires modification of the location of the telecommunications mast or even its removal, this may have a direct impact on existing
lease agreements. In such a situation, the tenant may be forced to terminate the contract, which
creates additional challenges for farms using such leases.

Regulatory changes: Changes in laws or regulations relating to telecommunications infrastructure can have a significant impact on lease agreements. For example, new regulations related to health, safety or environmental issues may require changes to the location or construction of a telecommunications mast, which could lead to the termination of leases. These regulatory changes may create additional challenges for farms that use these types of contracts, requiring them to adapt to the new requirements or
seek alternative sources of income.

Market competitiveness: In the competitive telecommunications industry, where dynamic changes
in market conditions are the order of the day, factors such as a decline in demand for telecommunications services in a particular region may prompt a tenant to decide to terminate a lease. This is often dictated by the need to reduce operating costs or to adapt to evolving market conditions. Such changes can have
a significant impact on a farm that leases land for telecommunications masts, creating the need to seek alternative sources of income.

In any case, if the tenant decides to break the lease agreement, this can have significant financial consequences for the landowner, who loses a permanent source of rental income. The farm then suffers a sudden loss of passive income, which was an additional source of funding for the ongoing costs of agricultural operations. In addition, the loss of income from the lease agreement may limit the farm’s ability to invest in the development and modernization of its operations. As a result, the farm may be forced to postpone planned investments, which may negatively affect its competitiveness and productivity in the long term. And the lack of certainty about future income can lead to difficulties in planning long-term strategies for the development of the farm and in managing financial risks.

Risks associated with withholding of farm financing, and consequently, lack of development financing opportunities

Failure to invest and develop a farm can lead to many dangers and challenges. Farms that do not invest in modernization and development are exposed to a number of problems that can have negative consequences for their productivity, profitability and sustainability. Below are some of the main risks associated with not investing in farm development:

1. Decline in productivity and competitiveness: Lack of investment in modern technology, infrastructure and training can lead to stagnant or even declining farm productivity. Over time, these farms may begin to lose competitiveness in the market, especially in the face of increasing competition from other agribusinesses, including those from abroad. Without constant development and adaptation to changing market conditions, such farms may find it difficult to stay in business.
2. Failure to Increase Revenue: The lack of revenue growth may prove problematic for the farm, as without expanding its operations it may face difficulties due to increasing external and internal costs, such as fuel expenses, employee salaries and electricity costs.
3. Weaker resilience to climate change: Investments in sustainable agricultural practices can help livestock farms cope with extreme weather events such as droughts, floods or extreme temperatures. Failure to make such investments can increase vulnerability to losses caused by climate change, which can lead to loss of crop yields, deterioration of animal husbandry conditions and overall weakening of economic farm stability.
4. Increased production costs: Lack of investment in modern technology, infrastructure and innovation can lead to increased production costs on farm. Lack of modern agricultural equipment, tools or
   irrigation systems can lead to less efficient production, which in turn can increase costs and reduce farm profits.
5. Reduction of ecosystem diversity: Failure to invest in sustainable agricultural practices can lead to soil degradation, loss of biodiversity and water pollution. As a result, there can be negative impacts on local and global ecosystems, including soil erosion, loss of habitat for wild animals and plants, and pollution of water resources.

In summary, a lack of investment and development on a farm carries a number of serious consequences. A farm that neglects to invest in modern technologies, infrastructure improvements and the development of agricultural practices risks not only losing potential profits, but also reducing the efficiency of its operations. Failure to follow changes in the market and new trends in agriculture can result in a lack of competitiveness on the farm, which leads to stagnation or regression in its development. In the face of increasingly volatile climatic, market and technological conditions, failure to adapt can be particularly dangerous. Lack of investment can lead to a loss of ability to compete in the market and a reduction
in production efficiency.

Investment and development of a farm is key to ensuring sustainable food production and the efficient operation of the farm itself. By investing in modern technologies, farming practices and infrastructure, farms can increase their efficiency, productivity and profitability. The introduction of new farming methods, modernization of agricultural equipment, and the use of modern irrigation techniques can
increase the yield and quality of crops produced. By investing in breeding, farms can also improve the genetics of their animals, increase the efficiency of their breeding, and improve the quality of meat, dairy or egg products. Therefore, farms should actively engage in investment and development to maintain their position in the market and ensure sustainable growth in the future.

The increase in farm productivity and profitability translates into financial stability for farmers and enables them to further develop their business. It also allows to maintain and pass on agricultural traditions to the next generation, which is crucial for preserving and protecting cultural and agricultural heritage. Therefore, investment and development of a farm are essential to ensure its efficiency, competitiveness and long-term success.

For what purpose can an agricultural enterprise effectively invest the funds obtained after
the sale of the lease?

Buying and investing in the latest agricultural equipment: Buying and investing in the latest agricultural equipment is a key step in modernizing a farm. Investing in the latest agricultural equipment allows you to streamline your work and increase the productivity of your farm. With modern agricultural tools and machinery, it is possible to perform a variety of field work more efficiently, from cultivation to harvesting. Modern agricultural equipment equipped with the latest technologies can also help improve the quality of production and minimize losses associated with unforeseen environmental factors. As a result,
increased labor and production efficiency can lead to increased profits from the farm’s agricultural operations. For example, the investment may include the purchase of specialized equipment for foliar fertilization, which will allow effective and efficient application of FITOVALOR fertilizers on plant leaves. This will enable accurate and precise delivery of nutrients directly to plants.

1. Purchase and apply FITOVALOR fertilizers at a discount: Investing in the purchase of FITOVALOR fertilizers can be an excellent option to improve crop yield and quality. You can invest in a variety of FITOVALOR products, tailored to the specific needs of your plants, which will lead to increased and quality yields and soil. By taking advantage of the opportunity to purchase FITOVALOR fertilizers in cooperation with Telecom with discounts as low as up to 50%, you can invest more money in these fertilizers, which will lead to even more effective fertilization and better crop performance.
2. Expanding the FITOVALOR product range: the investment can be directed to the purchase of a wider range of FITOVALOR fertilizers, including different types of fertilizers for different phases of plant growth, improving soil properties, and decomposing crop residues, allowing to comprehensively meet the needs of crops and maximize their potential. Purchase of new agricultural land: Investment in new agricultural land is an effective way to use additional funds. Such an investment can
   contribute to expanding farm operations, increasing production potential and improving profitability. Additional land acreage makes it possible to increase the scale of production, diversify crops, improve productivity and stability of operations. The purchase of agricultural land is also a long-term investment, providing stable income for many years. However, the decision to purchase new land should be preceded by a thorough economic analysis, taking into account local conditions and risks associated with such investment.

Why is a lease sale a better and safer option for a farm farm?

A farm can offset the risk of terminating a land lease for telecommunications masts by selling the lease and capitalizing on the profits resulting from this transaction. Working with Telecom Infrastructure Partners opens up this opportunity. By selling the lease, the farm can receive a one-time, significant income, which can be used to offset the risk associated with the loss of regular land lease income. In addition, capitalizing on the proceeds of the transaction may enable the farm to undertake investments in expanding its operations, upgrading its infrastructure, purchasing modern agricultural equipment or improving its animal husbandry conditions. In this way, the sale of the lease can bring long-term benefits to the farm, improving its financial stability, operating efficiency and growth prospects.

Mr. Anton Belyaev, Vice Chairman of the Board of Directors of Fitovalor, emphasizes that the sale of a lease can be an attractive option for a farm to obtain an immediate cash inflow and increase its ability to purchase and apply FITOVALOR fertilizers, which will help improve crop productivity and profitability without having to wait for harvest or other forms of income generation.

Summary

Cooperation with Telecom Infrastructure Partners can open up new opportunities for a farm and provide important support in maximizing the potential of its operations. A partnership with such a company can contribute to the development of telecommunications infrastructure on the farm, which in turn can generate additional sources of income or improve the efficiency of agricultural operations. In addition, such a partnership can help offset risks associated with a lack of funds for development through access to investment capital and industry expertise offered by the business partner. As a result, farms can achieve greater financial stability and make better use of their resources to increase the profitability of their operations.