Wisconsin-based biological farrning company Midwestern BioAg has raised $15 million in fresh capital through a funding round backed by three unnamed investors, according to a filing with the Securities and Exchange Commission (SEC). This latest round brings the company’s total funds raised to $23 million.
Founded in 1983, Midwestern BioAg BioAg has nine locations across the U.S. Midwest with sales in 29 U.S. states and Canada generating more than $40 million annually.
Under the mission of “Better farming through better soil”, Midwestern BioAg works with growers and large scale food companies to create farm management plans that integrate the company’s proprietary biological inputs that build soil health while increasing yields and the nutritional quality of both human food and forage. The company’s line of products and its services aim to enhance soil’s organic matter, improve nutrient use efficiency, improve crop strength, and increase the long-term productivity of farmland. By doing so, farmers can cut costs, while increasing yields and reducing the environmental footprint of their operation.
This funding comes only months after a big win for the company. In March of this year it was announced that Midwestern BioAg had entered into a strategic partnering with General Mills to provide on-the-ground expertise on regenerative soil management practices on 34,000 acres being converted to grow organic wheat and other crops.
General Mills has tied up with Gunsmoke Farms to convert the acreage located in South Dakota to organic production by 2020 to provide the company with a source of organic ingredients to be used in the production of Annie’s past products.
“Gunsmoke Farms is a unique property with special challenges and opportunities for how to scale organic farming,” said Gary Zimmer, founder of Midwestern BioAg. “We crafted a specific rotation and soil-building program to allow this property to be farmed organically at this scale. This involves tools and practices like mixing together wheat and legume crops to build nutrient-dense, carbon-rich soil.”
Increasing demand from consumers for organic products grown within sustainable production systems is leading General Mills to expect its North American natural and organic portfolio to see sales of $1.5 billion by 2020. Over the same time period, the biofertilizer market is expected to grow at a compounded annual growth rate (CAGR) of 14.08 to reach a value of $2.3 billion, while the agricultural biological testing market is expected to reach a value of $1.1 billion by 2021, according to Markets and Markets.
Biological farming companies such as Midwestern BioAg are becoming well positioned to capitalize upon such trends and strong market dynamics through partnerships with food producers looking to shift their production models amid this changing landscape.
“Investing in such a big acreage transition is a first of its kind for General Mills and is another step in growing our organic supply chain,” said John Church, chief supply chain officer at General Mills, in March. “We continue to seek ways to partner with landowners to make organic ingredients more accessible for existing and innovative new foods that our consumers have grown to expect.”
-Lynda Kiernan