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hicago, IL, April 21, 2011 – While most investors may not think of organic farmland when rethinking their retirement portfolio, this strategy has the extra benefit of improving the health of our environment as well as diversifying one’s investment returns. Concerned investors looking for more financial stability and sustainable growth now have more opportunities to participate directly in the emerging businesses of organic farmers.
Illinois-based Working Farms Capital is offering private equity and debt alternatives on certified or transitional organic farms under lease to legacy farmers. Unlike most conventional and annually renewing leases, Working Farms Capital structures long term leases designed to retain existing farm tenants and their intimate knowledge of the land. By obtaining lease terms spanning multiple crop years, farmers are better able to implement their business plans. Increasingly, the business of farming is more diversified. Recently a 225 acre farm was acquired to develop wind energy alternatives. The combination of renewable energy and sustainable agriculture represents a growing trend in land use. Working Farms Capital is at the forefront of this development and is expanding operations in the Midwest.
The typical farm lessee is a family farmer whose primary source of income is from the farm. Usually the farm ranges from 100 to 500 acres in size – considered a mid-size farm in the Midwest. Farmers run their own business utilizing rotations of row and cover crops, small grains, vegetables and pastured livestock. Owners receive a base rent with a variable upside based on overall farm profitability. The organic crops are sold to food processors and wholesalers with such varied end uses as blue and white corn chips, tofu, soymilk, organic flour, oatmeal, cereals, roasted soy nuts, milk etc. Most of the production is for human consumption. New owners are also varied and include individuals diversifying their IRA’s, educational endowment funds, pension funds, environmentally focused enterprises and mission driven private wealth offices or institutions.
According to David Miller, founder of Working Farms Capital, the investment theme is simple, “We’re offering investors a unique growth opportunity supported by an appreciating and renewable real asset. Focusing on soil health and renewable energy will naturally foster higher revenues and enhance the long term value of these farms.”
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Working Farms Capital was incorporated Illinois in 2007 to enable new capital for the transition of conventional farmland to organic practices. To receive more details, contact Dave Miller (dmiller@workingfarmscapital.com) More information available at www.workingfarmscapital.com