Farmland

Vital Farmland Fund III

www.FarmlandLP.com

Minimum Investment: $50,000

Farmland-LP-Reverse.svg

Initial Offering Date: 08/20/23 

Parent Company: Something LLC.

Vital Farmland Fund III is a 506(c) Regulation D offering that is focused on the conversion of agricultural real estate. The fund’s aim is to benefit from the supply/demand imbalance in the organic food sector in North America. Farmland LP buys conventional, chemical-based farms and converts them into farms that adhere to organic and regenerative principles.

What is the problem they are solving, and how: Organic food demand exceeds the supply of Certified Organic farmland in the United States¹. Farmland LP is intent on answering this need by acquiring and converting commodity farmland that meets their “Sunshine, Dirt and Water” criteria, which focuses on land location, soil health, and water supply. In converting these farms, they change the crop mix from three commodity crops to twelve higher-value crops, expand the tenant base from two farmers to twelve, and invest in infrastructure and technology to drive operating efficiencies. They aim to increase the production of sustainable food, increase land value, and produce revenue growth.

Offering Details

Fund:
Vital Farmland Fund III

Min investment size:

$50,000
Type of offering:
Reg D 506(c)

Investor Type:

Accredited Investors

Launch Date:

August 16, 2023

Fees:

Equal to 1.75% per annum.
For additional fees and expenses, please review the PPM

Offering period:

12 calendar months with monthly rolling close

Asset Class:
Real Estate

Farmland LP is a farmland investment management firm that acquires conventional farmland, converts it to Certified Organic, and builds long-term value by implementing sustainable farming practices. Their fund manages over 16,000 acres of farmland in Northern California, Oregon and Washington and has more than $250+ million in farmland assets. 

Farmland LP has the flexibility to farm directly (i.e. grow and sell crops for its own account) by utilizing its own farm management team or engaging other farmers. This capability is particularly valuable during the three-year conversion period in which organic methods are required but organic price premiums are not yet available. The option of direct farming allows Farmland LP to exert greater control over the pace and methods used to convert farmland. Direct farming also allows them to select crops that will potentially produce the highest revenues while also ensuring control over the soil quality. Farmland LP’s mission is to reduce the land’s carbon footprint and produce healthier crops, richer soils, and cleaner water for the current generation and those to come. This positive social and environmental impact is intrinsic to Farmland LP’s investment strategy for Vital Farmland Fund III, LLC, seen here:

  • Acquire conventional farmland and convert large sections to Certified Organic farmland;

  • Diversify the crops grown, focusing on higher value and permanent crops;

  • Invest in infrastructure and technology to seek to maximize productivity; 

  • Achieve scale by owning more than $50M of farms in a tight geographic area;

  • On-site farm management team;

  • Actively manage the properties with a dedicated farm management team; 

  • Seek to generate above-market capital appreciation and cash flow over the long term using its regenerative management practices.

Farmland LP has been recognized with numerous awards, including being  named a “World’s 50 Most Innovative Company” by Fast Company in 20142; a “Best for the World” B-Corp by the non-profit network B Lab in 2013, 2104, 2016, and 20173

Farmland LP currently employs nine professionals located in San Francisco, California, who have strong experience in investment management, and forty-five professionals based near Corvallis, Oregon, who have strong experience in farming and agricultural management.

Team

Managing a sustainable farmland investment fund requires expertise ranging from business management to farm management, legal to livestock production, and finance to crop specialists.

Senior Fund Management Team

Picture of Craig Wichner

Craig Wichner

Founder, Managing Partner

Picture of Tom Sullivan

Tom Sullivan

Managing Director, Capital Markets

Picture of Mark Chedekel

Mark Chedekel

Chief Financial Officer

Picture of Eoin Doherty

Eoin Doherty

Sr. Financial Analyst Head of Acquisitions

Senior Farm Management Team

Picture of Kevin Lehar

Kevin Lehar

General Manager, Green Spring Farms

Picture of Frank Savage

Frank Savage

Farm Manager, California

Picture of Craig Winn

Craig Winn

Vineyard Manager, Green Spring Farms

Picture of Randy Grimm

Randy Grimm

Blueberry Manager, Green Spring Farms

Total Market Value Compared to other U.S. Real Assets

According to the USDA, the value of all farmland sector assets in the United States is $3.83 trillion4. While farmland is not without its risks, it has historically been a secure asset class characterized by attractive rates of return from cash flows and property appreciation, with negative to low correlation to traditional asset classes and a low standard deviation of returns.  

Performance

Fund I

The Sponsor’s first fund, Fund I, was formed in 2009, has a term of thirty years, and has raised $61M of equity capital since inception.  Fund I is currently comprised of 5,175 acres of farmland in Northern California’s Delta region and Oregon’s Willamette Valley. In 2021, Fund I raised additional equity capital to support the expansion of a 600-acre organic blueberry project on its Burns Farm in Northern California. 

The Sponsor believes the investment required to convert the 600 acres to organic blueberries has depressed cash flows since 2018 and will yield enhanced cash flows to Fund I as the blueberries mature over the remaining life of Fund I.

 

The properties still held by Fund I are listed in the chart below:

Fund II

The Sponsor’s second fund, Fund II, was formed in 2014 and currently comprised of 8,068 owned acres of farmland in Oregon’s Willamette Valley and Walla Walla, WA. In addition, Fund II leases an additional 2,205 acres of farmland it manages in Oregon. Fund II has raised a total of $136M of equity capital since inception, with the majority of the equity capital invested in 2020 and 2021. 

The properties still held by Fund II are listed in the chart below:

Farmland LP believes organic and sustainable farming using regenerative practices is more profitable and better for the environment than conventional monoculture farming. Organic crops enhance soil health, which improves crop yields, and frequently command a price premium at both the retail and wholesale level, typically generating greater cash flow per acre versus conventional crops. Organic food sales have been growing at 13% per year since 1990, increasing from under $1 billion in 1990 to $57.5 billion in 20215.


Despite the rapid growth, organic foods only represent approximately 6% of food and beverage sales in the United States6, reflecting a market that the Sponsor expects to continue to grow for the foreseeable future.

Documents

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Farmland LP

Vital Farmland Fund III

$50,000

$50,000

Minimum Investment

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