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The Millennials Are Rising...
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State of the Farm
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Preliminary (un-audited) financial results indicate that we finished 2015 with record assets, equity and profitability. In all likelihood, the company will be making its first cash distribution to members of record in early 2016. This would represent the first time in company history that cash has been returned to its unit holders. We believe this is appropriate as we begin the process of converting to a REIT structure, which simplifies our tax reporting and better provides for the future growth needed to transition the monoculture. With only 1% of U.S. farmland certified organic, converting the monoculture presents perhaps the greatest environmental investment opportunity of the next century. Here are a few of our 2016 market themes:
Soil Not Oil
Last year, we began to see the collapse of the extraction based carbon markets, disrupted by a next generation focus on regenerative soil assets. Given that so few investors are yet allocated to this restoration theme, we expect to see significant portfolio re-balancing toward the pro climate/pro health asset class of organic agriculture. It is no surprise to us that the next generation of farmers are already re-balancing their crop systems and food production, while challenging the investment markets to keep up. It is going to take a village to supply the restoration capital needed to sustain this "just in time" millennial revolution.
A Strong House
Seven years of reduced leverage and increased revenues has set the stage for continued impact and growth. We have built a solid foundation so that we can indefinitely renew the farmer leases. Our commitment to holding the land is the backbone of our business. It is what sets us apart from all the farmland trading models out there. Our farmers want the land for the rest of their lives, and are willing to share a portion of their income to attain land security. We closely manage our finances to secure our pledge to keep the farmers on the land:
Breaking from the shackles of SEC confinement
For too many years, we have operated under the "accredited investor" restrictions mandated by the SEC. It is clear to us, that if we are to keep up with the millennial farmer needs for land access, we are going to need to fully engage millennial investors. So, we are working to bring to the market a non-accredited offering this year. The exact regulatory framework is still in discussion but likely to be a Reg A+ exemption that would still retain our private equity status but allow up to a $50 million offering to non-accredited investors. This game-changer will propel our capital raising efforts, create new markets, and enable the next generation to invest in their future.
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Our 2016 vision reinterprets
the monoculture as the
greatest environmental investment
opportunity of the 21st century.
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Dale Guldbrandsen, VP of Investor Relations, and Sally Dodge, Board Member and Northeast Community Development Manager, represent Iroquois Valley Farms at NOFA NY's winter conference. |
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Winter at our Earlville dairy farm in New York.
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Connecting farm families, communities, and investors since 2007. As a corporate guideline, we do not look for specific farmland to purchase. We develop relationships with farmers, mostly young and organic, that want to grow their farm business. We move to purchase if we have a ready, willing and able farm tenant in hand.
Connect with corporate staff at info@iroquoisvalleyfarms.com
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