The world’s agriculture sector is undergoing significant changes, and some investors are choosing to support sustainable farming projects as part of their impact investing strategies. These initiatives prioritize environmentally-friendly practices while delivering financial returns, and can make a difference in how the global food supply is cultivated in the future.
In the United States, a new breed of farmers are emerging – agribusiness entrepreneurs who use “beyond organic” methods and have embraced regenerative farming principles. They are also using innovative production techniques to increase yields and bolster farm profitability. They are doing so while reducing environmental risks and making the food system more resilient against climate change. But these innovators face a number of challenges in getting off the ground, including access to financing and limited infrastructure. For more info https://www.northwestrealestatesolutions.com/we-buy-houses-washington/
Investment property sustainable agriculture funds can help them overcome those barriers by providing the capital and infrastructure that they need to thrive. These investments can range from improving the physical infrastructure to creating valueadded services, like processing, storage, and logistics. They can also invest in regenerative agriculture practices, such as building soil health, capturing carbon dioxide, and restoring water quality.
These investments are often done in partnership with individual farm businesses, allowing them to secure long-term lease payments and an option to buy after nine years. Many investors in these funds are impact-first, mission-aligned family offices and foundations. For example, the UNPRI-supported fund operated by Dirt Capital invests in farm properties that are leased to farmers with a viable business model, offering them a pathway to ownership after about nine years. The company also supports agribusinesses that produce food, beverages, and animal products in proximity to urban centers by providing them with the land they need.
Another way that these funds can create a positive impact is through their investment in farmers of color and other marginalized communities. Farmers of color are more likely to be renters than owners and to generate less wealth from their farms than white farmers, which is due in part to structural racism that prevents them from accessing the capital they need. The funds that invest in these communities offer them affordable access to land, with most of their farmland being in rural areas that are more amenable to sustainable farming.
Sustainable agriculture is a growing industry that’s responding to the need for more food while also addressing climate change and other environmental concerns. Impact investing networks are recognizing the need for agricultural projects that strike a balance between feeding the world’s hungry while safeguarding the fragile environment.
As more and more people look to invest in their community’s future, sustainable agriculture is an attractive opportunity. But it’s important for investors to carefully consider how these projects align with their broader impact investing strategy. With the right research and diligence, they can support this important industry while achieving their financial goals.
