Thomas raised over € 1M with a German CSA to buy the land under their farm. Now Thomas is looking at blockchains to help more Farmland Stewardship Organisations do the same.
Welcome to Investing in Regenerative Agriculture. Where I interview key players in the field of regenerative agriculture, people who are scaling up the sector by bringing in new money or scaling up the practises on the ground.
Observations from the podcast:
- A lot of speculative cash has moved into agri land
- We have seen a real decoupling of productive value and the farmland price
- Buying land is out of the question for most farmers
- Farmland is mostly bought by financial institutions
- Financial Institutions only look at the highest lease (which is usually the least sustainable farmer as he or she is not paying for all the externalities they produce. Because they mine the soil.
- 80% of the classmates of Thomas at the biodynamic (4,5 year study) couldn’t find land afterwards
- Regenerative farmers, who are good stewards of the land, can’t make those cashflows (especially at the beginning) to pay back the loans. This is one of the big drivers of industrial agriculture
Community supported agriculture
https://en.wikipedia.org/wiki/Community-supported_agriculture
- Thomas helped Luzernenhof a German CSA farm raise over 1M.
- They set up their own crowdinvesting platform
- Organised events made a cool video
https://www.luzernenhof.de/de
Conditions:
- Shares in the cooperative which owns the land
- Buy land and charge very low lease rates to the farmers
- The shares give no dividends.
- Really unattractive terms
Tether Google link
www.google.it/search?q=tether&source=lnms&tbm=nws&sa=X&ved=0ahUKEwji1KnIxc7aAhUFIlAKHVfPCocQ_AUICigB&biw=1436&bih=735
Danone, the costs of capital depends on the ESG score
www.forbes.com/sites/jaycoengilbert/2018/02/20/every-cfo-should-know-this-the-future-of-banking-ties-verified-esg-performance-to-cheaper-capital/#171703797e4d
Luzernenhof who has also bought land for 10 others farmers, has noticed that landowners are willing to sell for a fairer price, if they know the land is going to be used sustainably!
This is a very interesting point! If regenerative farmers get a lower price for land, if this is true in other areas and countries this could be huge.
Terrafina
Blockchain based, value backed (agricultural land) stable crypto currency
Raising capital to help FSOs grow
White paper can be found here:
www.tinyurl.com/y8tyzzdx
Examples of Farmland Stewardship Organisations:
https://terredeliens.org/
www.bioboden.de
http://kulturland.de/
Find the ones in Europe here:
www.accesstoland.eu/
Advice for impact investors wanting to get into Regenerative Agriculture:
- Look at your local Farmland Stewardship Organisation and get involved
- Look into your local CSA farms, they usually rely on bank loans you could refinance them, which would be cheaper for them and you get a return (compared to 0% on the bank)!
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The above references an opinion and is for information and educational purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.
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