In this week's Off the Cuff podcast, Chris and Craig Wichner discuss sustainable farmland — specifically, a model for how investors can own it.
Two years ago, we announced this model on our site:
Gaining exposure to farmland as an investment asset class is highly desired by many of our readers, but very challenging to obtain in practice.
Chris and I have encountered an experienced team of managers and farmers who have created an investment and land management model that makes a great deal of sense to us. They have created a Fund that is buying thousands of acres of conventional farmland, which are then upgraded to certified organic farmland and stewarded using the leading best practices in sustainable agriculture (envision Joel Salatin's model). This approach improves the quality of the land, yields healthier and more humanely raised produce, improves the surrounding community, and offers attractive returns for investors in a hard-to-access asset class.
Shares of this Fund will be made available to a limited number of individual investors and institutions. Ownership is secured by farmland, and investors receive a share of the profits from the farmland operations, as well as to any appreciation of the underlying farmland.
Fund Strategy
Maximize investment appreciation potential while providing attractive annual cash flows by
- acquiring conventional farmland near large urban areas with existing high demand for quality produce
- converting land to organic through best sustainable farming practices (usage rotation, micronutrient build-up, etc), which increases underlying value of land
- collecting rent from organic operations on property (grains, vegetables, meats, wool, eggs, etc.), which creates annual cash flows
Fund Highlights
- Minimum buy-in: $50,000 for individuals; $1 million for institutions. Individuals must meet Accredited Investor requirements.
by troika