$250 million investment fund successfully specializes in converting conventional farms to regenerative and organic agriculture

Below, you’ll find the kind of news that I (Storm Cunningham) could only have dreamed of when I wrote the chapter on regenerative agriculture for my first book, The Restoration Economy.

When The Restoration Economy was published in 2002, it was the first actual hardcover book to document this newly-emerging trend, which at the point was little more than an enlightened concept.

Until then, mentions of regenerative agriculture had been limited to research papers and reports, primarily from the pioneers of the practice at the Rodale Institute in Pennsylvania.

Since then, we’ve covered the current explosion of interest in—and commitments to—regenerative farming and ranching practices, including from some of the world’s largest corporations. Here’s the latest:

On August 17, 2023, Farmland LP, America‘s leading fund manager specializing in regenerative and organic farmland, announced the launch of its $250 million Vital Farmland III (Fund III), its third and largest fund to date.

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

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,” he added.

Fund III will extend Farmland LP’s mission of transforming conventional farms into regenerative, sustainable, and organic operations, catering to the surging consumer demand for food products derived from organic and regeneratively farmed sources.

Farmland LP currently manages over 16,000 acres with approximately $250 million in assets under management (AUM).

Driven by robust investor interest in high-performing, sustainability-focused farmland investments, Farmland LP continues to experience accelerated growth,” remarked Tom Sullivan, Managing Director of Capital Markets and Investor Relations for Farmland LP.

Our new fund provides a unique opportunity for institutional and accredited individual investors to tap into this high-potential asset class, fostering regenerative farming practices that benefit our planet,” he continued.

Fund III will allow investors to align compelling financial returns with measurable, positive environmental impact.

The firm’s previous funds have delivered strong performances; notably, Vital Farmland LP (Fund I) has since inception generated a net average after-tax return to original investors of 113%.

With greenwashing a growing concern in the farmland investment sector, Wichner added, “Investors are increasingly seeking verifiable claims of sustainability. 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.

As a leader in the farmland investment sector, Farmland LP says it creates robust returns by transforming conventional farmland into thriving, sustainably managed organic farmland.

Established in 2009, Farmland LP representatives say the firm employs a distinctive, value-add commercial real estate approach to the $3.8 trillion farmland industry, designed to deliver superior risk-adjusted returns for investors.

Featured photo by Pexels from Pixabay.

See Farmland LP website.

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