June 24, 2016

Advantage Capital Agribusiness Partners, LP (ACAP), the $154.5 million investment fund formed by Advantage Capital and nine Farm Credit organizations through the Rural Business Investment Program, has made its second investment in the nation’s largest crop residue supply chain solutions company, Pacific Ag.

The strategic investment will help fund the acquisition of Calagri, a leading regional agricultural residue and hay harvesting company, and will help expand operations in the Pacific Northwest and build off of the organic growth of both companies. Pacific Ag founder and CEO Bill Levy explained in a company statement the increased possibilities this partnership would encourage progress. “As we grow and reach more customers, combining our expertise and experience will help us ensure our cost-competitive year-round supply, streamlined harvesting, and delivery,” he said.

This investment falls in line with the growing focus on biomass as a cost-effective form of alternative energy. Biomass investment is predicted to reach $100 billion by 2021, according to Pike Research. Procter & Gamble invested $200M in biomass technology in 2015, and the use of biomass continuously plays a part in European energy policy. The USDA has also announced a number of different initiatives supporting biomass research and investment, including $4 million in grants to develop woody biomass energy in rural communities.

St. Louis-based ACAP is licensed by the USDA as a Rural Business Investment Company, which focuses on businesses involved in the production, processing, and supply of agricultural products. ACAP’s partnership with the USDA is targeted towards developing and growing rural businesses and comes out of an initiative in 2014 under Tom Vilsack. Earlier this year, ACAP made a second investment in American Botanicals, a supplier of herbs and botanical products based in Missouri. ACAP’s investment in Pacific Ag will mark the third investment of 2016, following American Botanicals and Hortau.

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Tiffany Agard