The organic food industry is now a $25 billion annual revenue industry offering its farms a market growing at a 20% annual sales rate with customers willing to pay attractively higher prices!
At the recent Investor’s Circle event held in San Francisco I met Craig Wichner, Managing Partner of Farmland LP who is investing in the building of more organic farmland to harvest this financial opportunity. Farmland LP is an investment fund that buys chemical-based farmland and then converts it into organic farmland using best practices in sustainable farming. Farmland LP invests in organic farmland by:
- Raising funds from investors by offering an attractive combination of asset appreciation and cash flows
- Implementing sustainable farming best practices that will gain certification of the farmland as organic
- Recruiting and managing quality farmers who lease the organic farmland in a crop rotation process that ensures the farmland maintains its organic credentials.
In 2010 one of Farmland LP’s properties, Fern Road Farm, avoided using 19,600 pounds of synthetic nitrogen fertilizers and 595 pounds of pesticides while also increasing revenues by 40%.
Watch this video interview with Craig on his best practices for investing in organic farmland:
Bill Roth is the founder of Earth 2017, a company that connects businesses with customers seeking smart, healthy and green solutions. His book, The Secret Green Sauce, profiles best practices of businesses making money going green.