May 10, 2024

By Lynda Kiernan-Stone, Global AgInvesting Media

Farmland LP, the largest asset manager specializing in organic farmland in the U.S., announced it has expanded access to its $250 million Vital Farmland III fund through large brokerage platforms and through a partnership with iCapital, the leading global fintech platform driving alternative investing for the asset and wealth management industries. 

Taking a distinctive value-add approach, Farmland LP is focused on converting conventional farmland to sustainably managed organic production – a strategy that 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.

Through this model, Farmland LP saw a record-setting year in 2022 when the firm posted record revenue and AUM, expanded organic production, and hired staff for its farms and fund management teams. 

Today, Farmland LP owns and/or manages over 16,000 acres of high-quality farmland in Washington, Oregon, and California with approximately $300 million in assets across two funds. 

Continuing the momentum, in August 2023 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. 

Now, in addition to large brokerage platforms, Farmland LP has partnered with iCapital to provide financial professionals with alternative investment education and compliance training. 

“Farmland LP’s commitment to generating compelling, stable financial returns and environmental benefits offers wealth advisors and their clients a unique opportunity,” said Craig Wichner, managing partner and founder, Farmland LP. 

“With the supply of farmland dwindling at 4 acres per minute and the demand for food increasing as much as 13 percent annually in recent years, the time to invest in a more sustainable future is now.”

“In an increasingly volatile market, investors are looking to allocate a portion of their portfolio to stable, attractive yield alternative investments and farmland is the right option for many accredited investors.”

It’s also a key option for investors looking to incorporate ESG as part of their mission through their holdings. 

With a rating of 82 out of 100, Farmland LP was 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). 

“Investors don’t have to choose between targeting competitive, risk-adjusted returns and meeting environmental, social, or governance (ESG) goals,” states the firm. “Farmland LP’s model aligns financial goals with positive impacts for other stakeholders: the environment, farm managers, consumers, our communities, and future generations.”

~ 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. She can be reached at lkiernan-stone@globalaginvesting.com.

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