Category : News

Oregon Farmland Tour Images

We had a great time last weekend at our farms near Corvallis, OR.  Over 100 turned out for Saturday tours and dinner, and over 60 for Sunday tours and brunch.  Just wanted to thank everybody who put this event together (especially Karen Wells) and those of you who showed up.  We had neighboring farmers, buyers of our lamb and eggs, community stakeholders and partners, investors, and plenty of friends come by to visit and enjoy the beautiful country here.

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A popular attraction was our mobile hen houses for Vitality Farms certified organic, pastured eggs.

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About 50 folks got on a school bus to tour two of our farms.  Shown here is Chris Hansen of Mosaic Farms with his Bershire hogs on our pasture at Fern Rd Farm.

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Also at Fern Rd Mac Stewart explained our grazing practices which integrate dairy calves and sheep.

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The sheep were a bit more shy than the cattle, so Mac and his dog Tigg brought them in for closer inspection.

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Our Seed Cleaning Facility was a unique experience for most visitors.  Cleaned seeds fill a one-ton tote, ready to head to market.  Oregon is a world-class center for seed production and processing.

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Dinner in our new egg cleaning and food handling facility was delicious. Thanks to John Neumeister of Cattail Creek Lamb for a skilled job on the BBQ and New Morning Bakery of Corvallis for the side dishes.

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Almost done with the day and ready for the next one. 

Organic Acreage Now 783; Pastured Laying Hen Operation also Certified

Last week Oregon Tilth notified us that we successfully converted 783 acres of our Oregon farmland to Certified Organic farmland — an increase of 110 acres from 2012 (our first year).  In addition, another 107 acres are Certified Transitional Organic at Wattenpaugh Farm — a status conferred to land that is about one year away from being eligible as Organic.

At the same time a pastured laying hen business was Certified Organic at A2R Farm.  Congratulations to Karen and Neal Wells for reaching this milestone.  Oregon Tilth also approved our plan for handling the Organic livestock of others.  Vitality Farms Livestock Manager Mac Stewart is now caring for Organic dairy calves for an Organic Valley Coop farm at our Fern Rd location.

Our approved Organic System Plans enables us to produce and sell as Organic various crops, including small grains and forage seeds, hay, and certain classes of livestock and livestock products.  The inspection process was very thorough, and I can attest that Oregon Tilth is rigorous and thoughtful in carrying out their duty to verify compliance with the National Organic Program law.  I  also recommend COG Pro as an on-line tool for organizing and storing records needed for the certification process.  This allowed me to quickly pull up records that directly responded to the inspector’s questions.  Apparently this enabled him to go into more detail with me than is typically possible!

Having a strong, independent certification system is important for maintaining the integrity of a healthy, sustainable food system, and becoming Certified Organic is one way we can support a system of values and practices we believe in.

Featured in Oregon Business

We had a nice visit about a month ago from April Streeter of the journal Oregon Business.  Now Farmland LP (and Vitality Farms) are featured in their May issue with an article titled “Farm Futures:  Private Equity Goes Organic.”  I am impressed by the quality of reporting here, which explains our story in concise prose with a clarity few others have captured.   

0513_FarmFutures_02From left to right:  Neal Wells, Karen Wells and myself.  It was a cold, rainy day so photography was done in a barn.  Lots of livestock available as props.   Not shown is shepherd Mac Stewart who saw me with a lamb over my shoulders (also published with the article) and texted:  “I don’t pose with baby lambs.”  I know Mac, I know.  Photo by Eric Näslund.

 Here’s a nice paragraph:

Instead of the typical U.S. model, in which larger acreages are passed on through family inheritance or owned by corporations, Farmland is two managers using investor funds to purchase conventional mid-size farms in both Oregon (around 1,000 acres thus far) and California (5,300 acres). Once converted to certified organic acreage, Farmland’s holdings are put into a newfangled land-management system that is actually based on a more old-fashioned rotation of plots between growing pasture, grazing livestock and cultivating different crops in order to boost soil fertility without chemical fertilizers. And unlike the one-man-one-tractor model of agriculture, in which a few farmers work vast swathes of land in monocrops, or the sustainable farm ideal in which a farmer takes a small patch of ground and coaxes multiple foods from it, Farmland’s model is novel. Different farming experts will ply their trades on the same plots of ground as these pieces of land are moved through rotation.

The reporter did a lot of research beyond just talking to us, and the article includes quotes from others commenting on our business model, including our investors:

Portland-based non-profit Ecotrust is one of these, having followed Farmland LP from its inception. Richard Hervey, Corvallis city council president, is another.

“I really like the model,” Hervey says. “I wanted to move some of our money out of the stock market. Farm land is a fundamentally stable investment and Farmland LP is also a local investment.”

A key thread is the opportunity provided to young and beginning farmers and it was nice to hear the perspective of farmers we work with, as well as reactions and experiences of those involved in start-up farms.  I want to thank April Streeter and Oregon Business for such a thorough analysis.

And for those of you who aren’t investors or farmers, you can benefit from the food coming from our farms.  Here in Oregon look for pork from Mosaic Farms, lamb from Cattail Creek, and eggs from Vitality Farms when shopping or dining. Not only are the land and animals treated well, but these farmers are great at what they do and care about your health and your enjoyment of the food they grow.

Spring 2013

Here are some images from the past month on our farmland.

California, Brentwood Creek Farm

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Representatives from BN Ranch, Swanson’s Lamb, Vitality Farms, PGG Seeds and Farmland LP talk about pasture and grazing.  The field we are standing on was sown last fall and has been grazed once so far this season.

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Heavy feeder lambs owned by Superior Farms being finished on new pastures. 

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Alfalfa ready for cutting to make hay.  The field has been managed organically for two years now and is in its seventh season.

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John Snider of PGG Seeds pulls up some forage and expresses his approval to Beth and Pete Swanson.

California, Burns Farm

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First alfalfa harvest of the season in progress.

Oregon, Fern Rd Farm

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Organic dairy heifers from an Organic Valley member are gentle and curious.  They weigh about 600 lbs upon arrival and will gain enough to be bred later in the year. 

Oregon, A2R Farm

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Pastured laying hens outside their new, custom built house enjoy fresh grass and afternoon sunshine.

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A lily beneath oak trees along the banks of Muddy Creek.

Oregon, Wattenpaugh Farm

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Newborn twins finding their mother’s milk.

Farmland LP named “Best for the World” by B Corp

Only Farmland Firm to Receive this Award

SAN FRANCISCO — Farmland LP, the only U.S. investment fund for Organic, sustainable farmland, is pleased to report that B Corp has honored Farmland LP with their “Best For The World” award.

Of the 737 certified B Corps in 26 countries, Farmland LP is one of 67 honored today, with one of the highest “B scores” given of 151 out of 200.  B Corps are companies that agree to B Corps principles and meet B Lab’s standards in the areas of Governance, Workers, Community and Environment.

In an article released today by Bloomberg Business Week, B Corp co-founder Jay Coen Gilbert addressed the question of what it takes to be part of this elite list:

In order to be that high a performer, you’re going to have to be operating well on all cylinders. They’re typically not only excelling in one area, just employee practices or environmental practices. They’re bringing that same intention to create shared value for all of their stakeholders.

“This award reflects our personal passions for making the world a better place, while delivering solid financial returns for our investors,” said Craig Wichner, co-founder and Managing Partner of Farmland LP. “We, like other B Corps, believe that investors shouldn’t have to choose between their financial future or creating a world we’re proud to leave to our children.”

About Farmland LP

Farmland LP acquires conventional farmland and converts it to Organic, sustainable farmland, in a structure similar to a private farmland REIT. Farmland LP’s investors benefit from owning farmland – an appreciating, inflation-hedging asset. Farmland LP adds value to farmland by converting it to certified Organic, thus increasing the cash flow by capturing the 50% to 200% price premiums for Organic. In addition, the sustainable agriculture best practices employed improve soil productivity and reduce input costs, and thus increase profitability for farmers and our investors.  Farmland LP owns 6,300 acres of farmland (about 10 square miles), with 673 acres already certified Organic.

Four Years

February is Farmland LP’s four year anniversary.

In February of 2009 Craig and I and a couple of other friends took a week-long road trip to Oregon’s Willamette Valley to look at buying farmland. We saw a wonderful opportunity to convert conventional farmland to organic and sustainable farmland, but it also became perfectly clear to us that to really make a difference would require more capital and more brilliant people than we could fit in our car.

Sustainable agriculture is a team sport, requiring financing, sufficient farmland, agronomists, livestock and crop farmers, real estate management, fund management, and much more. And on the drive home from that road trip we crafted Farmland LP, almost exactly in the form it is today, and began working full time on our passion.

I moved my family to Corvallis on Labor Day weekend 2009.  By February 2010 the fund had purchased 154 acres near Corvallis.  It took until April of 2011 to add another 112 acres a few miles from our first property.

In 2012 we purchased the 1,114 acre Brentwood Creek Farm in California in February, another property near Corvallis at 692 acres in March, and finally the 4,200 acre Burns Farm near Tracy, CA in late December…a very nice way to end the year.

Hansen and hogs

Chris Hansen of Mosaic Farms was one of the first to lease land from us and he still does today.  Here he is pictured with some of his prize winning pastured hogs at Fern Rd Farm in the summer of 2010.  

This has been a lot of work, but also a wonderful personal experience for both of us.  We have met so many exceptional people, such as our 75 investors who put their trust in us, the sellers of the land, the dedicated farmers and ranchers we work with, the wise people who buy our farmers’ products while appreciating great food and the long-term stewardship of the land, and finally those that just cheer us on. Thank you.

Our first fund will close soon with 6300 acres and over $43 million in assets. We think of this as a great start in transforming our agricultural system into one that is both economically and environmentally sustainable, while producing abundant food for all humanity. We are looking forward to continuing doing this for many years to come.

 

Interviewed by Chris Martenson

We’ve been getting a lot of great feedback on Craig’s recent interview with Chris Martenson of Peak Prosperity, which is available here as both a Podcast and a transcript.  From emails it is clear that listeners have gotten some “a ha” moments out of it, such as:

  • Seeing how Farmland LP helps young farmers get started by providing access to high quality land they don’t have the capital to buy themselves.
  • Appreciating the integration of livestock and crop rotation, which begins with a Joel Salatin-like livestock model then adds organic vegetables and grains to the mix as the soil fertility allows.
  • The potential to scale this agronomic model over significant area, simultaneously benefiting multiple stakeholders–investors, farmers and eaters–and the environment.

Thanks to Chris for giving us the time to share what we do and why we are so passionate and committed to it.  We’re big fans of his, as he has a way of clarifying complex economic, environmental and energy topics. His interview certainly did that for a number of people.

 

Interviewed by Clean Currents

Thanks to fellow B-Corp Clean Currents for interviewing me.  It was a pleasure meeting them and other B-Corp leaders recently.  Here’s a cross-post from their blog.

Written by Megan Barrett
Tuesday, 20 November 2012 10:41
Back at the B-Corp Champions Retreat, we met Jason Bradford of Farmland LP. After chatting about sustainable food and the future of US farmland, we were hooked on the mission of Farmland LP. We sat down with Jason to learn more about Farmland LP and their unique model that cultivates farmland sustainability.

Jason Bradford Farmland LP                      Jason Bradford with Mac Stewart of Vitality Farms.
Vitality Farms leases Farmland LP land in Oregon to raise sheep and cattle.

Clean Currents: What does Farmland LP do and why is it important?

Jason Bradford: Farmland LP buys farmland and converts it to certified Organic, sustainably managed farmland as an investment fund, similar to a REIT.  We specialize in sustainable agriculture and integrating crop and pastured livestock rotations.  Our goal is to play a role in the transformation of the food system while benefiting the environment, supporting quality jobs, producing healthy food, and returning a financial profit for our investors.

Organic food sales in the U.S. have been growing between 15-20% per year since 1990 and yet the rate of conversion of U.S. farmland is lagging far behind.  Organic food is therefore more likely to be imported, and yet people also want local food.

Meanwhile, the American Farmland Trust estimates 50% of all U.S. farmland will change ownership over the next 15 years, representing about $75 billion dollars of farmland sales each year.  Now is the opportunity to alter how the land will be managed for the next generation and beyond.   We need to give already established Organic farmers room for expansion, encourage conventional farmers to adopt Organic practices, and we need places to start for a young generation of farmers who haven’t inherited land.

Clean Currents: What motivated you to start this company?

Jason: When I was a research biologist I had the good fortune to travel the world and see first-hand how humans had a fundamentally dysfunctional relationship with the natural world.  Agricultural is intimately connected to the environment in ways people can understand directly.  So if I can help build a healthier system of farming it would go a long way towards promoting a shift in the cultural mindset.  The best civilizations don’t dismiss and dominate nature, but find their place and peace within it.

Having a more synergistic rather than conflictive relationship with nature also translates into better financial performance.  The conventional farming practices of today come from an out-of-date “get rich quick” mindset that doesn’t account for what we have learned over the past fifty years in the fields of ecology, genetics and complexity, and doesn’t reflect the current facts of high input and energy costs and a changing climate.  So when our fund has demonstrated greater profitability due to our practices at scale, the broader agricultural industry will take notice.

Clean Currents: Do you think it’s more important to shop locally or to shop organically?

Jason: The best thing you can do is shop seasonally within your locale, always favoring Organic producers or producers you know first-hand are using good practices.  If it is out of season locally, it gets more complicated.  First, it’s beneficial to purchase unprocessed or only moderately processed and packaged whole foods.  An Organic TV dinner or soft drink is really not much better for you or the environment than a non-organic version.

Health-wise, Organic and ideally pasture-based, is the way to go.  Energy-wise, the shipping of grains and meats is typically only around 10% of the energy cost in life cycle analyses of food.  Yet for off-season fruits and vegetables, local production using greenhouses can be very energy intensive.  In short, good Organic or pasture-based producers are saving a lot on fertilizer inputs ( typically 30% of the energy cost of food production) and should be rewarded no matter where they are.

Clean Currents: What can our readers do to support the development of organic agriculture in the US?

Jason: People most care about sustainable agriculture producing healthy food.  The Organic label is important, but there are other ways of producing great food.  And, in the end, people have to know where their food comes from.  People can work on public policy to remove or reduce the subsidies that promote monocultures of a few annual grains, and support policies that encourage healthy crop rotations and land conservation.  When shopping, chose Organic food, especially when it is in season and local, to help maintain the economic incentives for converting land in your area and elsewhere.  And look at opportunities to make your savings and investments, such as retirement accounts, align with your values by investing in or supporting Organic and sustainable companies.

Clean Currents: What’s your favorite organic fruit or veggie?

Jason: Undoubtedly my favorite veggie is a ripe tomato from my own back yard.  Buying a conventional tomato is a complete waste of money since they are nearly flavorless.  I also buy local, organic, heirloom tomatoes from farmers who have hoop houses and can get their tomatoes to market three months ahead of me!

Clean Currents: Is there anything else you’d like to add?

Jason: I want people to be numerically literate and to be able to think at a proper scale when contemplating the unprecedented transition that is going to happen in farmland ownership and management over the next couple of decades.  Hundreds of millions of acres of U.S. farmland will be sold over the next 15 years, representing a present day value of over $1 trillion.

If enough capital is deployed buying farmland with the intention of managing it in perpetuity using agroecological, Organic methods, we will reap a host of other benefits such as cleaning up rivers and estuaries, sequestering carbon dioxide, replenishing topsoil, slowing the evolution of antibiotic resistance, reducing hormone-disrupting pollutants, rebuilding a strong population of bees and other pollinators, and having healthier people in our families and communities.

When evaluating the cost-benefits of systems of production in agriculture it is critical to account for more than just dollars.  Organic farms are generally more profitable, and they tend to externalize benefits, rather than costs, to the broader society.  This is what I am spending the rest of my life working for.

Farmland LP Converts 673 Acres to Certified Organic Farmland

Congratulations to Jason and his team for successfully converting 673 acres of our farmland to Certified Organic farmland at two of our properties near Corvallis, OR.  A copy of the Organic Certificate is available here.

Jason has done a tremendous amount of work over the past three years to gain this certification.  The minimum requirements for certifying farmland include (modified from http://en.wikipedia.org/wiki/Organic_certification):

  • Organic inputs only – avoid synthetic chemical inputs not on the National List of Allowed and Prohibited Substances (e.g. fertilizer, pesticides, antibiotics, food additives, etc.), genetically modified organisms, irradiation, and the use of sewage sludge;
  • 3 Years clean – farmland has been free from prohibited synthetic chemicals for three years;
  • Documentation — extensive paperwork is required, detailing farm history and current set-up, and usually including results of soil and water tests.
  • Planning — a written annual production plan must be submitted, detailing everything from seed to sale: seed sources, field and crop locations, fertilization and pest control activities, harvest methods, storage locations, etc.
  • Inspection — annual on-farm inspections are required, with a physical tour, examination of records, and an oral interview. In addition, short-notice or surprise inspections can be made, and specific tests (e.g. soil, water, plant tissue) may be requested.
  • Fee — an annual inspection/certification fee (currently starting at $400–$2,000/year, depending on the certifying agency and the size of the operation).
  • Record-keeping — written, day-to-day farming and marketing records, covering all activities, must be available for inspection at any time.

With Certified Organic farmland, we can now produce and sell Certified Organic crops, as well as produce livestock and eggs from chickens that were “Raised on Certified Organic Farmland”.  The price premiums are worth the work, but the certification is also just a measure of our broader commitment to sustainable and regenerative agriculture.

Images below show the certified fields for the 526 acres at A2R Farm, and the 147 acres at Fern Road Farm respectively.  These are significant additions to the Organic acreage in the Willamette Valley with 665 of these acres being cropland and 386 irrigated.

Special thanks to the inspectors and review staff at Oregon Tilth, one of the original certifying agencies that pre-date the national standards.  We are very pleased to have successfully completed this process with them.

This is a major milestone, but is also only a step along our journey as we continue our work to get all our 2,000 acres certified organic (…with more farmland on the way).

Oregon Entrepreneur Showcase

Craig and I are looking forward to presenting at Slow Money Northwest‘s Oregon Entrepreneur Showcase on Friday, September 14th in Portland.  The event is open to accredited investors, who will get to hear from six great companies as well as meet and mingle with other leaders, investors, and supporters.  The event is from 5:30 to 8 pm at Xplane (411 SW 6th Ave) in downtown Portland.  Tickets can (and should) be bought in advance for $30, which includes food and drinks.

We presented Farmland LP at a similar gathering earlier this year and had a great time with quality people. This time, on September 14th we will present Vitality Farms LLC. While Farmland LP invests in and manages farmland, Vitality Farms  specializes in buying livestock for use in sustainable agriculture, such as on the diverse pastures sown on Farmland LP properties. We’ve been able to find great livestock managers, and Vitality Farms helps them scale up their operations to fill our now over 2,000 acres.

For example, life-long shepherd Mac Stewart (pictured below) can handle up to 2000 ewes, more than double the current flock of 950 ewes, in part due to the irrigation and fencing infrastructure on Farmland LP’s land, and the new Prattley handling equipment Vitality Farms brought in from New Zealand.  Mac works with John Neumeister to carry on a 30-year tradition of raising what many chefs in Portland consider the finest lamb in the region:  Cattail Creek Lamb.  Mac is looking forward to another 30 years.

In addition to cattle we bought for Bill Niman’s new company, BN Ranch, Vitality Farms is also collaborating with them in developing a state of the art pastured laying hen system for pastured eggs.  Neal and Karen Wells (pictured below) have moved their family to a home on one of Farmland LP’s farms near Corvallis to start this business.  The Wells are wonderful people with extraordinary passion, having spent the past three years searching for a place and a means to become pastured-poultry producers while also donating labor on farms in the Willamette Valley.

Vitality Farms is thrilled to be able to work with producers like Mac, Neal, and Karen (and of course Bill Niman and John Neumeister).  If you are interested in supporting the growth of high quality, healthy and tasty food in the greater Portland region you are welcome to join us and others at this Slow Money NW event.  If you have questions about the event you can contact Malaika Maphalala at Natural Investments (malaika@naturalinvestments.com). We look forward to seeing you there.