Aug 30, 2023

Farmland LP fund offers $250 million for transitioning to organic

Farmland LP, a fund manager specializing in organic farmland,  has launched the $250-million Vital Farmland III, its third and largest fund to date.

Fund III will extend Farmland’s mission of transforming conventional farms into dynamic, sustainable and organic operations, catering to consumer demand for food products derived from organic and regeneratively farmed sources.

Farmland manages more than 16,000 acres with approximately $250 million in assets under management. Fund III will allow investors to align compelling financial returns with measurable, positive environmental impact. The firm’s previous funds have delivered strong performances; notably, Vital Farmland LP has since inception generated a net average after-tax return to original investors of 113%.

“Farmland LP’s strategy is grounded in simplicity and effectiveness,” Craig Wichner, CEO of Farmland LP, said in a news release. “We acquire conventional, chemical-dependent farms and reengineer them as models of organic and regenerative agriculture, thereby boosting cash flows and land values.

“With our proven 14-year track record, we have demonstrated that converting low-margin, high-volume farmland into higher-margin organic alternatives generates substantial financial benefits while simultaneously promoting environmental stewardship, Wichner said in the release.

“Driven by robust investor interest in high-performing, sustainability-focused farmland investments, Farmland LP continues to experience accelerated growth,” Tom Sullivan, managing director of capital markets and investor relations for Farmland LP, said in the release. “Our new fund provides a unique opportunity for institutional and accredited individual investors to tap into this high-potential asset class, fostering regenerative farming practices that benefit our planet.”

With greenwashing a growing concern in the farmland investment sector, Wichner said investors are seeking verifiable claims of sustainability.

“Our commitment to certified organic standards and regenerative farming practices focused on soil health assures our investors that their capital is truly advancing sustainable agriculture,” he said in the release.