Nov 12, 2021
$100M invested in fund focussed on turning farmland organic
Farmland LP, a farmland manager focused on converting conventional farmland to organic in the U.S., recently announced that its second fund, Vital Farmland REIT LLC, has surpassed $100 million in equity commitments and is on target to reach its $150 million goal by the final closing date in December.
The investment included participation from previous Farmland LP Fund I investors, institutional investors and their consultants, family offices, clients from numerous wealth management advisory firms, and accredited individual investors, according to a news release from the company. Vital Farmland REIT LLC, aka “fund II” is Farmland LP’s second fund since the firm’s inception in 2009, and the proceeds will be used to continue to invest in high value add projects on Vital Farmland REIT LLC in Oregon and Washington.
“The strong response to fund II confirms that investors are recognizing the merits of organic and regenerative farming,” said Craig Wichner, CEO of Farmland LP. “Farmland is a $2.7 trillion asset class in the U.S., offering investors consistent and stable returns. In today’s environment with significant increases in the money supply and continued inflationary pressure, U.S. farmland offers investors a lower-risk, non-correlated investment opportunity as a hedge against inflation. And our value-add approach to actively managing the farmland in our funds is expected to generate returns to investors in excess of those available in the broader farmland sector. Additionally, our regenerative farming practices and focus on converting conventional farmland to organic offer investors the tangible ESG benefits they are seeking, but seldom finding, in their fund managers today.”
The funding milestone follows a year of strong growth for Farmland LP. Earlier this year, Farmland LP earned the highest corporate-sustainability rating awarded by HIP Investor Inc., a leading ESG and sustainability.
Founded in 2009, Farmland LP owns/manages over 15,000 acres of high-quality farmland in Washington, Oregon and California with approximately $200 million in assets over two funds. Farmland LP’s strategy of converting conventional farmland to organic, focusing on high-value and permanent crops, and using technology to drive productivity gains is designed to generate competitive, risk-adjusted returns to investors while demonstrating and quantifying the positive benefits regenerative farming can provide for human and ecosystem health, biodiversity, water resources, and climate change.
Above, a hedgerow of pollinator-friendly flowers in a blueberry field. Photo: Farmland LP