Craig Wichner, CEO of Farmland LP: "About 6% of the US food budget (USD 56.500 billion) is spent on organic food"

"There is around USD80 billion in farmland that could be turned organic, just to meet the demand for organic products in the existing domestic market."

Farmland LP is a market-leading investment fund, which has successfully converted conventional farmland to organic since 2009, using cutting-edge technologies such as satellite imagery, electronic monitoring and automated harvesting, thereby driving high returns to its investors and associated producers.

The company manages more than 15.000 acres of farmland in Northern California, Oregon and Washington, and has more than USD175 million in assets, showing how large-scale sustainable agriculture is more profitable than conventional agriculture, providing financial returns, positive social and environmental

The soil is the base

The organically enriched soil is the basis for generating strong returns for investors and farmers, as well as benefits for society as a whole by caring for the environment. In this perspective, Farmland LP acquires conventional agricultural land, converts it to certified organic, and generates long-term value through the implementation of sustainable agricultural practices.

An internal market of USD 80 billion

Farmland LP is the largest asset manager focused on converting conventional farmland to sustainable organic production in the US. A strategy that investors are certainly showing their confidence in, and the potential is huge. While participating in the Global AgInvesting On The Green 2021, Craig Wichner, CEO of Farmland LP, said that his company estimates that there is around USD80 billion in farmland that could be converted to organic, just to meet the demand for organic products in the existing domestic market in the US.

Awards and recognition 

Farmland LP has been recognized with numerous awards, including being named one of the "World's 50 Most Innovative Companies" by Fast Company; twice named “Best for the World” B-Corp and twice “ImpactAssets 50”.

Reaching this impressive point of recognition is a great achievement for Farmland LP. Adding that earlier this year the asset manager obtained the highest corporate sustainability rating from HIP Investor Inc., one of the leading ESG and sustainability ratings firms. Additionally, in April this year, the firm appeared as one of the best images in the real assets category of the Fortune Q2 / 2021 Investment Guide.

Investor confidence 

The company's most recent announcement reveals that its second fund, Vital Farmland REIT LLC (Fund II) has exceeded $ 100 million in capital commitments and is on track to reach its goal of $ 150 million by the end of this year in December.

“The strong response to Fund II confirms that investors are recognizing the merits of organic and regenerative agriculture,” says Wichner.

Utilizing technology to drive productivity gains, Farmland LP funds are designed to generate competitive risk-adjusted returns for investors while demonstrating, and quantifying, the positive benefits of regenerative agriculture on human health, ecosystems, biodiversity, water resources and climate change.

With a focus on high-value, permanent crops, Farmland LP is the largest asset manager in the US. Converting conventional agricultural operations into sustainably managed organic farms, using regenerative production practices.

Source
Martín Carrillo O. - Blueberries Consulting

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