Buy
Identify at least $50 million of farmland in a single region with the right “Sunshine, Dirt, and Water” – great growing climates, high-quality soils and plenty of available water.
“Buying farmland is really buying sunshine, dirt, and water. We focus on great growing climates, high-quality soils, and secure water rights.”
Craig Wichner, Founder
Sunshine-Dirt-Water
These are the elements for growth that run through our property selection and active farm management.
Sunshine
- Acquire land in fertile growing regions
- Recognize climate change is happening
- Match crops with land that thrives in those climate conditions
Dirt
- Acquire farms with healthy soils
- Eliminate chemical fertilizers
- Increase soil productivity and biodiversity
Water
- Acquire land with secure strong senior water rights
- Benefit from underpriced water rights which climate change will enhance
- Invest in water-supply improvements
Our Process
Buy, Add Value, Manage
Add-value
Convert conventional farmland to diverse, high-value organic and permanent crops. Improving soil health, rotating crops and investing in infrastructure boosts revenue and financial returns.
Manage
Manage the land as an income producing, appreciating asset and either lease it to tenants or farm it ourselves.
Take a closer look at how we add value
Organic Conversion
- Increase rents from $300/acre to $800/acre
- 50%-200% price premium on organic food
- Using fewer chemicals means lower costs and higher profits
Diversify Crops
- Higher value, diverse crops deliver better revenue and income per acre
- Crop rotation improves soil health, increasing yields per acre
- Soil chemistry and biology determine optimal crops for the land
Maximize Margins
- Technology and infrastructure investments add value, including:
- Full field satellite imaging
- GPS-driven tractors
- Farm management software
- Drip irrigation
- We actively manage farms with an experienced management team
- We farm 1/3 of our acreage and lease the balance to tenant farmers
What Does This Lead To?
A large number of diverse crops with sizable price premiums
Higher-value crops that increase land values
Rotated crops that don’t require expensive fertilizers
Secured undervalued water rights
A greater multiple on exit
And, of course, great benefits for the planet
Real Results
An Example
Burns Farm, Northern CA
Farmland LP acquired the 150-year-old Burns Farm in 2013. This 4,000-acre farm had grown the same three crops for 50 years, rotating them approximately every five years.
Before
2013 Purchase Price $29.5M
- No organic acres nor permanent crops
- 3 conventional crops
- 2 farming tenants
- $347 revenue/acre
- Senior water rights
After
2023 Appraised Value $92.3M
- 2,910 acres certified organic and permanent crops
- 12 diverse crops
- 7 farming tenants
- $809 revenue/acre
- Added drip irrigation
Improvement
Increase in Value 3.1x
- 80% certified organic and permanent crops
- 4x crop diversity
- 3.5x tenant diversity
- 2.3x revenue/acre
- Increased water efficiency and value
Before
| Crop | Revenue / Acre |
|---|---|
| Alfalfa / Hay | $355 |
| Corn | $300 |
| Tomatoes | $369 |
| Total / Average | $347 |
After
| Crop | Revenue / Acre |
|---|---|
| Organic Blueberries* | $1,124 |
| Organic Beans / Melons | $750 |
| Organic Grain Corn | $750 |
| Organic Green Beans | $750 |
| Organic Squash | $750 |
| Organic Sweet Corn | $750 |
| Organic Tomato's Process | $750 |
| Organic Watermelons | $750 |
| Organic Pasture | $300 |
| Olives** | $461 |
| Almonds** | $357 |
| Conventional Row Crops*** | $551 |
| Total Organic | $809 |
| Total Conventional | $489 |
| Total / Average | $705 |
* Gross profit from 155 acres and will increase as bushes mature. An additional ~150 acres will have first harvest each year between 2023 and 2025.
** Revenue share will increase as trees mature, estimated $1,000+.
*** Will convert to permanent crops.
