Aitken Mount Capital Partners' Angus Aitken told clients "the last five years has been a real money-making opportunity" for ASX agriculture shares, as reported in The Australian.

But some stocks are tipped to do better than others. Here are three ASX agricultural shares the broker believes are "standout buys".

Are these ASX agricultural shares set to take off?

Cobram Estate Olives Ltd (ASX: CBO)

Embattled ASX olive oil producer Cobram Estate has reportedly been flagged as a potential winning agriculture share.

The company floated in August 2021. Its share price has dipped nearly 5% since then to trade at $1.85 at the time of writing. But the broker reportedly believes it has the potential to go much higher.

"We think Cobram is a $5 to $6 stock over time," Aitken told clients, as quoted by The Australian.

"Remember it takes five to eight years for an olive tree to mature and given 40% of their trees are yet to mature, you get 40% volume growth down here alone without spending another [cent]."

The broker also reportedly noted the company could break into the United States market.

Kiland Ltd (ASX: KIL)

Market watchers might be more familiar with Kiland by its former name, Kangaroo Island Plantation.

The company worked to harvest timber before bushfires damaged 95% of its tree crop in 2020. Fortunately, the ASX share still boasts thousands of hectares of agricultural land.

"Out of bad things, very good things happen and this business is now investing to clean up that land and turn (it) into premium farmland," Aitken was quoted as telling clients.

"We think over four to five years this 18,000 hectares can be worth $300 million or more … We also see large carbon-related opportunities in this business over time that people won't have looked at."

The Kiland share price has fallen 9% since the start of 2022. It's currently trading at $1.22.

Lark Distilling Co Ltd (ASX: LRK)

The final ASX agriculture share the broker thinks is worth looking at is Lark Distilling.

The company faced a major scandal this year when its CEO resigned amid apparent evidence of drug use.

"We are new to Lark as we think the valuation is dirt cheap," Aitken wrote, courtesy of The Australian.

"[The former CEO's] behaviour didn't change the value of the brand or the maturing whisky."

"Lark should easily make $25 million to $30 million (in earnings) down the track … you are buying this stock on single-digit multiples when the average [earnings before interest, tax, depreciation, and amortisation (EBITDA)] takeover in the premium spirits space is 30 to 40 times."

Right now, shares in Lark are swapping hands for $3.08, 41% less than they were at the start of 2022.

The post 3 ASX agricultural shares with 'real money-making opportunity': broker appeared first on The Motley Fool Australia.

The Kangaroo Island Plantation share price is up 7.6% to $1.13 per share as a result.

Kangaroo Island Plantation is a logging and timber business located on Kangaroo Island off the coast of South Australia. The company has been subject to multiple takeover and land-acquisition bids since the devastating Kangaroo Island fires wiped out its plantations, so let's take a look at this latest offer.

Kangaroo Island Plantation takeover bid

Samuel Terry Asset Management's bid is to buy all fully paid ordinary shares in Kangaroo Island Plantation for $1.05 per share. The bidder has appointed Third Party Platform as its broker for the purchase of the Kangaroo Island Plantation shares on-market. 

On-market means the offer is unconditional, and provides current Kangaroo Island Plantation shareholders "a simple cash exit from [their] investment" according to the company's release.

Samuel Terry's offer states that $1.05 per share "is equivalent to the closing price of Kangaroo Island Plantation shares on 30 April 2021 (the last trading day prior to the announcement of the offer).

It's also equivalent to the 1 month volume-weighted average price (VWAP) of the company's shares to 30 April 2021 and represents a premium of 3% to the 3-month VWAP of the company's shares ($1.02).

The release also stated that it "the offer is a best and final offer, and the bidder will not increase the offer price."

Kangaroo Island Plantation's share price rose significantly at the beginning of last month, after the company rejected a land purchase deal worth $20 million. The company says its land holdings on the island are worth more than $60 million alone. Company director Keith Lamb said at the time:

While the company is open-minded to approaches it receives, the board is squarely focussed on maximising shareholder wealth and with this in mind, offers are considered on merit. This resolve has not altered since the tragic fires of 2019-20.

Kangaroo Island Plantation share price snapshot

The Kangaroo Island Plantation share price is up 3.2% the past week and 5.6% the past month, but has fallen 11% since 2021 began.

The post Kangaroo Island Plantation (ASX:KPT) share price rockets 7% on takeover bid appeared first on The Motley Fool Australia.

The Kangaroo Island Plantation share price has risen 4.9% to $1.07 at the time of writing. 

Kangaroo Island Plantation is a forestry company and timber producer on Kangaroo Island, off the coast of South Australia. It manages a wholly-owned portfolio of hardwood and softwood forestry plantations, growing on former agricultural land. 

The land it owns is strategically located in high rainfall areas that are highly suitable for growing, allowing the company to potentially capitalise on increasing land values. 

Kangaroo Island Plantation refuses low-ball offer

The $20 million offer from KI Phoenix was for all of Kangaroo Island Plantation's land assets on Kangaroo Island. This has sparked uncertainty in the Kangaroo Island Plantation share price recently.

Kangaroo Island was decimated by bushfires in January last year that wiped out up to 95% of its animal habitats. According to the company, this has led to "an increase in interest by those seeking to opportunistically acquire land at distressed prices". 

Kangaroo Island Plantation lost a huge portion of its logging plantations in the bushfire and has since received more than $62 million in insurance payouts.

What management said

The company's managing director Keith Lamb said land values on the island far exceeded the offers the board was receiving:

While the company is open-minded to approaches it receives, the board is squarely focussed on maximising shareholder wealth and with this in mind, offers are considered on merit. This resolve has not altered since the tragic fires of 2019-20.

The land value recorded on KPT's balance sheet is $59.28 million, based on independent expert advice provided by leading rural valuers. The latest valuation was set at June 2020, following the fires of 2019-20 and is benchmarked below equivalent land value on mainland South Australia. Since June 2020 land values around the country have risen.

Kangaroo Island Plantation share price snapshot

The Kangaroo Island Plantation share price is today recovering after falling 1% yesterday and 4.9% on Tuesday. Overall, it's now up more than 7% this week and 9.18% higher over the past 12 months. However, shares in the forestry company have fallen 14% since the start of 2021.

The post Why the Kangaroo Island Plantation (ASX:KPT) share price is rising today appeared first on The Motley Fool Australia.