News and Blog

Join Farmland LP at the Slow Money National Gathering


Got Slow Money?Farmland LP is very pleased to announce that we are a finalist for presenting at the 2011 Slow Money National Gathering’s Entrepenuer’s Showcase.  In addition, Farmland LP’s co-founder Craig Wichner will be on two panel discussions:  New Slow Money Funds; and Preserving Farmland.

The Slow Money organization seeks to rebuild our economy and culture toward true sustainability, starting with food: to invest as if food, farms and fertility mattered. By helping investors meet sustainable food pioneers, integrating thought leadership with entrepreneurship, and fostering shared learning across a full spectrum of backgrounds, the National Gathering is an opportunity to direct financial resources where they will “do well by doing good.”

Slow Money asks some key questions that are right at the heart of Farmland LP’s mission:

  • What would the world be like if we invested 50% of our money within 50 miles of where we live?
  • What if there were a new generation of companies that generated profits while enhancing sustainability?
  • What if there were 50% more organic matter in our soil 50 years from now?

Farmland LP meets these questions head-on, by acquiring conventional farmland and converting it to certified organic farmland using sustainable agriculture best-practices. Instead of depleting the soil with each harvest, we rebuild it. Instead of monocropping and using farming practices that aren’t appropriate to the land, we diversify our produce and custom-tailor it to each plot of land. Instead of shipping our produce and pastured meats to the other side of the country, we rebuild regional food supply. The end result is that consumers can enjoy premium quality, organic, sustainably produced food that is healthy for them, and restorative for the environment. At the same time, our investors enjoy the security of owning low-risk farmland as a “stable store of value” while benefiting from increased cash flow and long-term appreciation of their assets.

We cordially and enthusiastically invite our current and future investors to join us at the National Gathering in San Francisco for three days of engaging, learning and sharing with up to one thousand other hopeful, constructive and fun folks. Featuring keynote addresses by sustainability luminaries like David Suzuki, Vandana Shiva and Wes Jackson; presentations by over 100 thought leaders; in-depth discussion sessions about sustainable farming and investing; film screenings; opportunities to network with like-minded people; and the best of the Bay Area’s local organic food and music, it’s sure to be a memorable, stimulating, inspiring, and altogether tasty experience!

Check out the program, explore the speakers, and then mark your calendars for October 12-14, 2011. You can register for the conference here with a 10% discount, courtesy of Farmland LP!

We look forward to seeing you there!

August Update

A lot is happening right now.  Not only is this prime harvest season, but much infrastructure work gets done in mid-summer.  And there is planning for the field work in late summer and fall.

This spring a reporter from the magazine Portland Monthly visited me, and this month subscribers can find the article titled “Seed Money” on page 34.  For the rest of us it is available on-line too.  Again, it is very nice to have coverage from the regional press about our work connecting the farmland of an area to the population of eaters.

One of our properties is going have the wheat harvested very soon, so this may be the last chance to take a look at the 2011 crop in the field.  I love the golden-blond color of ripe wheat, the rustling sound it makes in the breeze, and the way the light gleams and refracts off the spiky awns.

 

Baby Berkshires

While much of the nation is engulfed in a heat wave, it remains fairly cool around here. Only a few days this summer have been in the upper 80s.

The weather has been frustrating for the local seed and vegetable growers, but just fine for pasture. We even had over an inch of rain during a couple days in mid-July.

I wanted to share this image of a picture perfect summer afternoon with playful pigs. I took this soon after Chris Hansen brought these young Berkshires to our Fern Rd Farm. You can clearly see their water, feeder and housing, as well as the nice carpet of pasture. This field had already been grazed three times by sheep, once each in April, May and early July, before the pigs arrived.  The pigs are moved to a new paddock approximately monthly and remain outside into the early fall.

Coverage of Slow Money Showcase

Farmland LP was a presenter at the recent Slow Money regional showcase in San Francisco.

SF Weekly covered the conference, and below is the paragraph about Farmland LP.

Farmland LP applies investors’ money to acquire and convert conventional land to organic, sustainable farmland. This alleviates the financial and logistical pressures that prevents many farmers from undertaking the conversion process. The potential for return is great. Farmland in general has returned 14.8% IRR since 1992, far outpacing the S&P, and the demand for organic food has grown 20% annually since 1990. Moreover, the gap between total acreage of farmland and total US population is narrowing. When you consider that one acre of farmland roughly feeds one person, the demand will surely be on the rise. Farmland LP is looking to raise up to $100 million, in minimum $50,000 investments, to acquire and convert these lands.

We very much appreciate Slow Money investors as our values are perfectly aligned.  If you aren’t aware of Slow Money, I encourage you to read more about it.  It is certainly an innovative approach towards transforming the food system.

Broad-scale Permaculture Farming

Back in January I wrote a blog called “Oil and Food Prices” that has been the most cross posted and commented upon at this site.  The content of that post was very simple—the price of food is very tightly correlated with the price of oil.  And the reason for this correlation is also very easy to understand, i.e., a lot of energy goes into getting food from farm to fork.

While this is news to many food buyers, it is a subject that spawned the creation of the Permaculture design system way back in the 1970s when the world was also concerned about oil prices.  The idea was to study how humans use energy to obtain what they need and to devise strategies for meeting human needs without high inputs of fossil fuels.  It is an approach that differs markedly from others in that it isn’t trying to find a 1:1 replacement of fossil fuels with renewable alternatives, but instead aims to design whole systems that have much less need for energy inputs in the first place.

In other words, Permaculture systems aim to break the correlation between oil prices and food prices.

Fast-forward 40 years and we have both good news and bad news.  The bad news is that we are as dependent on fossil fuels today as ever.  The good news is that many people have been developing and refining Permaculture systems so we do have much more knowledge to draw upon.

So I was glad to meet Andrew Millison, a Permaculture instructor in the Horticulture department at Oregon State University.  Together we are teaching a summer course that is described as follows:

For a transition to a sustainable culture, we must design and rehabilitate the broad swaths of commercial agricultural lands into ecologically sound and economically profitable Permaculture systems. In this class we will explore the dynamics of hedgerows, broad scale water harvesting, soil regeneration, animal and crop rotations, habitat restoration, income diversification, transition timelines, and farm certifying organizations.

This course is open to OSU students as well as members of the general public (and you can still sign up). The cost is a very reasonable $300 for the week of June 20-24.  And the best part is that while the classroom time is held on the Oregon State campus, most of the course takes place on beautiful farms, especially Farmland LP’s Fern Rd property.

Energy and Organic Agriculture

Some may be wondering what is the relationship between Permaculture and Farmland LP, which bills itself as converting conventional farmland to certified organic farmland.  Well, organic methods are one of many ways to reduce energy inputs.  A life cycle analysis of actual staple crop production in Canada, for example, found that overall energy inputs in organic systems were 39% of conventional inputs per kilogram of grain yielded, or a whopping 61% lower (see table from this paper below).  (And go here for discussion of a research approach asking similar questions in the US but using controlled field plot studies).

The primary contributor to lower fossil fuel use on organic farms is the avoidance of nitrogen made from fossil fuels, while using biologically fixed nitrogen instead.  In the study referenced above, the source of nitrogen on organic farms was annual green manure crops, such as a clover.

A review paper with the wonderful title Eco-efficient approaches to land management: a case for increased integration of crop and animal production systems makes a strong argument (as I have on this blog) that savings are even greater when legume-rich pasture and crop systems rotate.  Multi-year pastures have a few advantages over annual green manure crops.  First, the cost of seed and fuel to plant the pasture is spread out over years instead of just part of a year.  Second, pasture roots have time to go deeper and condition soil more completely.  Third, soil born disease and weed populations that impact annual crops are not given a chance to grow for multiple years, essentially cleansing the soil for annuals when they return.  Fourth, rotational grazing systems build organic matter and nutrients at a faster rate and to a higher level than does a single season of a green manure crop.

Livestock grazing a diverse pasture in a rotating paddock system help build soil fertility

Permaculture is a design system, not a particular production method, and it emphasizes using natural biological cycles as much as possible.  For this reason it does have an overlap with organic or agroecological farming systems.  But I also see someone with a Permaculture background adding to the potential of a farm.

I can envision Permaculture designers looking at a Farmland LP property and paying attention to the edges of fields more than most traditional farmers would.  A lot of action occurs at borders and they can be useful places for adding value.  For example, planting trees or a hedge row will reduce wind speed across fields.  Less wind means lower stress on plants and animals, such as through less water loss during the summer in crops and by reducing rapid heat loss in livestock during winter cold spells. A hedge row may also shelter and provide food for beneficial insects that end up pollinating crops, and livestock may gain access to browsing forage that balances their diet.

To make farms as resource efficient and productive as possible, while developing greater resilience, is a fabulous challenge.  I am eager to bring as many minds towards this goal as I can and hope many students can come and begin learning and contributing their talents.

Profiled in Sustainable Business Oregon

Farmland LP is getting a decent amount of press lately.  The most recent was last week in Sustainable Business Oregon.

Here’s a bit from the article:

For Cody Wood, a sheep farmer near Harrisburg, the appeal is financial.

By leasing from Farmland, Wood is able to spend more on his flock.

“I’m leasing 125 acres; it’s got $40,000 or $50,000 worth of irrigation equipment on it. I wouldn’t have been able to swallow that cost,” Wood said. “And I can produce a lot of animals on this farm.”

What he pays for his time on the land will depend on what he gets paid for his sheep. Farmland LP shares the risk with farmers, betting that their land will produce higher yields.

“One way or another we have to get farmland available to younger farmers and this is one way to do it,” said Harry McCormick, a Corvallis farmer and co-founder of Oregon Tilth, who served as an adviser to Farmland. “I like that the fact that it’s money coming out of the banking sector.”

Cody and I are in the middle of setting up the irrigation equipment right now and it is indeed quite an investment.  But the payback is also very good as lambs will grow out quickly, to be ready for market in the fall and therefore not need over-winter care.

The article includes a few good pictures, including this one of a baby lamb and ewe taken on May 18th.  Healthy lambs on their mother’s milk may gain about a pound per day.  The newborns will often be walking within an hour of birth and be running around, quite agile and fast, in a couple of weeks.

Thanks to Christina Williams for writing this piece.  It is nice to get some coverage in the regional press.

 

Triple Pundit Interviews Farmland LP

The tag line for Triple Pundit, a sustainable business media outlet, is People, Planet, Profit, which makes them a natural kindred spirit with us at Farmland LP.  Triple Pundit correspondent Bill Roth met Craig Wichner at the recent Investors Circle conference in San Francisco, and today posted an article based their interview.

Embedded in the article is a short video clip of their discussion.  I highly recommend it for a quick overview of Farmland LP’s business strategy.

Inc. Magazine Features Farmland LP

Farmland LP is featured in the May issue of Inc. magazine as part of a special section on How a Business Can Change the World, which is billed as “A special report on the innovative business models social entrepreneurs are inventing.”  We at Farmland LP enjoyed the process of being interviewed by Inc. staff, we appreciate their interest in what we do, and we are pleased to be one of the companies featured in their report.  Here’s the opening paragraph of the main article:

It used to be that if you wanted to make a difference, you joined a nonprofit. And if you wanted to make money, you launched a business. These days, it’s not so simple. More nonprofits are being run like fast-growth start-ups. And more traditional companies are being built around social missions.

The details of how companies are being set up that blur traditional bounds is fascinating and I highly recommend the associated articles.

The specific piece about Farmland LP is titled “The Benefits of Going Organic – Farmland LP’s unusual approach to making money on real estate” and discusses our unique approach to farmland investing and how we advance sustainability.  We’re thrilled with the article and hope you enjoy it as well.

It is also nice to see one of my farmland pictures in print.  The image Inc. chose (shown below) was taken on Feb. 4, 2011.  We had just unloaded a group of sheep onto Fern Rd Farm and I snapped this shot with my iPhone as the animals settled down to feed, just a minute or so after exiting the trailer.  This pasture was sown on Sept. 15th, 2010.  We didn’t expect to be able to graze it so soon, but it was a very dense and tall sward by mid-January.  The flock of sheep pictured below was off the field after a couple of weeks, the pasture regrowth was fast, and we grazed it again in April.

 

Edible Seeds Making a Comeback

The Willamette Valley is famous for its grass seed production, and can even boast supplying the World Cup soccer fields in South Africa.  The dominance of grass seed began to wane with the collapse of the housing bubble a few years ago.  And while the major shift has been towards wheat, much more is going on.

I promised in a past blog post to review the regional resurgence of an edible and more diversified seed crop industry and will do so now.  Prompting comes from recent front page coverage in the Oregonian, namely an article by Eric Mortensen titled “Flax returns to the Willamette Valley in fertile land that once grew grass seed” which happened to profile the same farm I did in my January 2011 blog post titled Local Grains.  It is a good article and I encourage folks to read it.  I will also show that wheat and flax are parts of a diverse, tasty mix of culinary staples.  First, I’ll highlight a couple of quotes from the Mortensen piece:

This is a changing state that romanticizes its farms but doesn’t understand its farmers. Two-thirds of its farmers and ranchers are older than 55. Ownership of 9 million acres, more than half the state’s farmland, is projected to change hands in the next decade. The next generation has to do more than master the multiple skills farming requires: They’ll be hard-pressed to fend off development pressure while connecting with an urban population intensely, sometimes intrusively, interested in what they’re doing.

What a great summary paragraph of the complex social and demographic situation in agriculture.  This is why 30 something year olds like the article’s protagonist, my friend Clint Lindsey, get so much attention:  More of them are needed if we are all going to eat 20 years from now.   And these young farmers are entering the profession during one of the most tumultuous periods in the past few decades.  Again from the article:

Lindsey and his father decoupled the farm from the international commodities market. With their partners, they plan to install a small grain mill. From now on, they intend to sell grain, seed and flour to bakeries, restaurants and specialty stores within 150 miles.

It is less a revolution than a throwback. They are at the forefront of restoring an infrastructure that grows, processes, markets and consumes food locally.

So not only are these farmers trying to grow a diversity of edible seeds—from wheat to chick peas to flax, but they are working to re-localize processing and distribution.  There are several reasons why, but mostly you will hear it is about niche marketing opportunities catering to the locavore craze, growth in the organic food industry, capturing the margins of processing and distribution, and developing strong and stable relationships with buyers to avoid the ups and downs of commodity markets.

A crowd of local eaters gathers at the edge of a flax field at A2R Farms near Corvallis, OR.  Clint and Mike pose for cameras and answer many questions.

But I also know that there’s something else going on.  Nearly all farmers by now have connected the dots between the cost of energy and the cost of their inputs.  This means a rise in food commodity prices often doesn’t improve net farm income because modern farms have their inputs priced by commodity markets too.  I wrote earlier about the tight correlation between the price of oil and the price of food.  Oil prices are also a good proxy for farm input costs.  Therefore, some farmers have decided there’s a long-term advantage in cutting the distance between themselves and their customers, and by reducing the volatility of input costs by using organic, or quasi-organic, methods.

A few months ago Clint gave me a call while in my neighborhood.  He wanted to make sure I was home so he could stop by with something.  A loaf of bread… “his” bread.  We shared a few moments of excitement and praise before Clint had to go.  Then I started making sandwiches with it and haven’t gone back.

Some people have their livelihood riding on building a regional food system and that motivation seems to be getting it done, one slice at a time.  But beyond the economic and food security issues that come up, I must say that watching this happen, and really working to do my part, is also a lot of fun.

My first loaf of Oregon Grains, by Nature Bake, which uses wheat, oats and flax from A2R Farms.

Wheat, flax and what else?

Okay, there’s been plenty of talk about wheat and flax.  Let me showcase more of the contenders for our newly appreciated regional seed crops.  Almost none of these are sold by commercial seed dealers around here.  Farmers are buying seed stock from other parts of the country (or world) and seeing what can be locally adapted.  A few seeds are even sourced directly from the bulk bins of grocery stores!

Last summer a few of the local farms gave public tours and I have pictures and notes that I am drawing from.  Also, I have attended some meetings of the Southern Willamette Valley Bean and Grain Project and have these notes.  Dan Armstrong has written well about these discussions on his web site.

While the public tours were on the larger farms, with the area being managed ranging from 900 to 9000 acres, a few small farms are also involved in the development of grains and beans and alternative edible seed crops.  The most well-known small farm is Sunbow Farm, one of the founders of the Bean and Grain Project, and newcomers such as Adaptive Seeds are trying many species and varieties.  A number of the small farm varieties won’t work on the large farms because they can’t be mechanically harvested.  Much of the discussion revolves around harvesting issues, and the big farms need plants that can be field dried, cut and combined efficiently.  For the most part, I will restrict myself to what the larger farms are doing.

I will briefly discuss three categories of edible seed crops:  grains, legumes and “others.”

Grains are grass species (family Poaceae). These are usually cool season crops, known broadly as small grains, planted in fall or spring for mid-summer harvest.  Soft white wheat is the main grain in the valley, but farmers are now growing hard red wheat (which has higher protein levels and can be used in leavened breads) hulless oats and hulless barley for human consumption (as opposed to the more common feed oats and barley varieties).  There is excitement over a six row malting barley being developed by a breeder at Oregon State University.  Cereal rye and triticale get some mentions, but the market for them is less certain.  The most common summer grown grain in the area is corn, but it is all sweet corn for processing.  Small farms are trying other types of corn but none of the big farms are.  I was surprised to learn that a couple of farms are now growing teff for sale to a local food wholesaler.

A table display at Stalford Seed Farms near Shed, OR highlights their flour products.  This farm has been key in the development of locally adapted hard red wheat and beans, and in the formation of Willamette Seed and Grain LLC, which processes, markets and distributes for local farms transitioning out of conventional grass seed and into edibles.

Legumes (family Fabaceae) fix nitrogen and are part of a healthy crop rotation.  Historically this area has produced clover seed.  The edible newcomers are lentils, chick peas, pinto and black beans.  Lentils and chick peas are probably better for our cooler climate as they can be sown before the last frost and mature quickly to be harvested in dry summer conditions.  Pinto and black beans are warm season crops that have had some success, but during the past couple of years the harvest has gone poorly as we’ve had cool summers and the beans didn’t dry in the field well enough before fall.  Something to keep an eye on is chickling vetch, which is being tested by farmers.  Soybeans like it hot, so nobody is sure they will be a good fit around here, although small farms are growing edamame varieties.

Rows of pinto beans at Stalford Seed Farms.

Flax (family Linaceae) has uses for food, fiber and industrial oil.  The cool climate here is perfect for flax, which can be either fall or spring sown.  Buckwheat is a very quickly maturing plant (family Polygonaceae) that is used as a summer cover crop and for its edible seed, which is usually made into a flour.  Cool season oil seed crops (family Brassicaceae) in the area may eventually be used for human food, and farmers are interested in these as they add to the crop rotation potential.  Canola grows well but is semi-banned since it can cross with vegetable relatives grown commercially.  Another member of the same plant family, Camelina, is better accepted.  Locally it has primarily been promoted for biofuel production, but is used for food in Europe.  Sunflowers, which have varieties developed for either seed or pressed oil, are being tried but may be marginal because of potentially cool summers.

The tour included a stop and delicious meal at Tom Hunton’s place near Junction City (Tom also owns SureCrop).  Pictured here is a field of buckwheat in flower.  I was also impressed by the diversity of commercial scale field trials on this farm, such as teff, and varieties of chick peas and lentils. Later in the year Tom reported a yield of 1800 lbs/acre for variety Dillon chick peas on his Malabon soil.

Where does Farmland LP fit in?

If you read this blog it is obvious that we are mainly doing livestock production on the farmland we manage.  This is because growing seed crops organically during the transition period from conventional farming is very difficult, which the Oregonian article touches upon.  By contrast, livestock grazing prevents weeds from going to seed, builds soil fertility, and provides us with a steady income before we are certified organic.

What we will do once our land becomes certified organic and the soils are in great shape is offer sections to organic seed farmers.  We will be looking for those with experience and the ability to plan and implement a diverse crop rotation.  After a few years in annual seed crops the land will go back into pasture, and the seed farmer may be given new areas to sow.  This pattern is expected to reduce the management costs and risk to the farmer while increasing yields, which should increase profitability for all of us.

 

Back on Pasture

There was a time in March when the fields were quieter than normal.  Pigs were in the barn and the sheep were being kept elsewhere.  But not any longer.  Here are a few pictures and commentary based on the past couple of weeks.

The laying hens are out on pasture.  Operator Chris Hansen put together a very nice mobile hen house that is light weight and comfortable for both hens and egg collectors.

These 150 lb Berkshire hogs had never been on pasture before, but instinctively took right to it.  Chris is running around the perimeter as they test the electric fence and learn to avoid it.  Sometimes a novice pig runs through the fence, so he wants to be there in case one gets out.

In the distance a group of ewes makes themselves at home after recently being unloaded from a trailer.  These will soon give birth to lambs that will be the majority income for the farm this year.  The foreground highlights the fine condition of the pasture, which was sown in early May of last year and was grazed from early July to mid November.

I am a big fan of April.  The daylight hours and warmer temperatures lead to luxurious pasture growth.  For the next three months we will worry about having too much feed!

How can there be too much feed?  Because when pasture grows for too long a period without grazing forage quality declines.  I discussed this in a previous article, but the gist is that plant tissues are most nutritious when fairly immature.  We now have hundreds of animals on our property, but they can only eat so much per day and we don’t want to put so many out there that they have too little feed in late summer.  It is a balancing act, and over the winter rancher Cody Wood and I developed scenarios and plans to do our best to get it right–i.e., maximizing long-term productivity and cash flow.