August 21, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Taking a distinctive, value-add approach, Farmland LP is the largest U.S. asset manager focused on converting conventional farmland to sustainably managed organic production – a strategy which is resonating with investors as ESG and regenerative factors continue to be ever more important considerations when making capital commitment decisions, and with consumers as demand for products derived from organic and regenerative production grows.

Using technology to drive productivity gains, Farmland’s funds are designed to generate competitive, risk-adjusted returns to investors while also demonstrating – and quantifying – the positive benefits of regenerative farming on human health, ecosystems, biodiversity, water resources, and climate change.

At Global AgInvesting 2021, Craig Wichner, CEO of Farmland LP, said “There is much potential in organic farmland, with only 1 percent of U.S. farmland currently designated as certified organic. About 6 percent of the U.S. food budget is spent on organic food, or about $56.5 billion, which, according to the Organic Trade Association, would be much larger if not constrained by supply.”

This huge potential was reflected in the record-setting year that Farmland LP had in 2022, when the firm posted record revenue and AUM, expanded organic production, and hired staff for its farms and fund management teams. 

Continuing the momentum, Farmland LP announced the launch of its $250 Vital Farmland III – its third and largest fund to-date – which will extend Farmland LP’s transformative mission for agriculture by shifting conventional farms into dynamic, sustainable, and organic operations. 

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

Currently, Farmland LP manages more than 16,000 acres with approximately $250 million in AUM. The firm’s previous two funds have delivered strong performance with notable track records, including Vital Farmland LP (Fund I), which generated a net average after-tax return to original investors of 113 percent since inception. 

“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,” said Wichner. 

With a rating of 82 out of 100, Farmland LP is awarded the highest HIP (Human Impact + Profit) – a top ESG and sustainability ratings firm – investor rating among a field of thousands, including the top Agricultural REIT, top in U.S. corporations, and top in Micro Caps.

Through regenerative and organic transformation and sustainable management of farmland assets, the firm’s funds have been proven to have realized significant positive impacts including the sequestration of 16,934 tons of emissions and CO2, avoiding 207,389 pound of pesticides and 6,834,376 pound of synthetic nitrogen, and storing 1,526,799 pound of carbon in the soil (above baseline). 

Wichner and the Farmland LP team acknowledge that greenwashing is a growing concern in the farmland investment space. “Investors are increasingly seeking verifiable claims of sustainability,” said Wichner. “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.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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