Key Takeaways:
- Microsoft’s Climate Innovation Fund has invested in Farmland LP’s Vital Farmland III LLC.
- Farmland LP to develop Soil Carbon Credits on its 18,500-acre portfolio.
- The investment supports regenerative agriculture and carbon sequestration.
- Microsoft’s involvement aims to boost sustainable farming practices globally.
- Farmland LP will use Verra’s Verified Carbon Standard to create high-quality carbon credits.
Investment Announcement
Farmland LP, the largest fund manager in the U.S. focused on organic regenerative farmland, has announced an investment from Microsoft’s Climate Innovation Fund in its third value-add fund, Vital Farmland III LLC. This investment will help expand the development of Soil Carbon Credits across Farmland LP’s 18,500-acre farm portfolio, aimed at advancing regenerative agriculture practices.
Soil Carbon Credit Development
Farmland LP’s initiative focuses on creating Soil Carbon Credits, an effort to sequester atmospheric CO2 through regenerative agriculture. The development will include preparing protocols required to expand the soil carbon credit market, which plays a role in sequestering carbon as mineralized soil carbon. These protocols will support increasing regenerative agriculture practices on a larger scale.
Microsoft’s Perspective
Erika Basham, Director of Microsoft’s Climate Innovation Fund, emphasized the importance of Farmland LP’s work:
“Farmland LP’s use of regenerative agriculture practices to ensure healthy soils, and therefore high-quality soil carbon credits, is a critical element of advancing nature-based carbon removal solutions. We’re excited to invest in their fund and work with them to create a more sustainable agriculture sector.”
Farmland LP’s Plans
Craig Wichner, Founder and Managing Partner of Farmland LP, commented on the investment:
“This investment from Microsoft is a significant milestone for Farmland LP and the broader regenerative agriculture sector. Microsoft’s investment in our Fund III is a powerful validation of our approach to regenerative agriculture, and this capital will allow us to acquire additional properties and increase our fund’s economic and environmental returns.”
Carbon Credit Protocols
As part of the partnership, Farmland LP will generate soil carbon credits using Verra’s Verified Carbon Standard, a globally recognized carbon program. These credits will be based on various regenerative agriculture practices, with the goal of showing that such methods can be both economically beneficial and contribute to reducing atmospheric carbon levels.
Farmland LP Latest News
Unveils $250M Fund for Organic & Regenerative Ag (2023/08/18)
In a significant move that underscores the growing demand for sustainable agriculture, Farmland LP has announced the launch of its largest fund to date, the $250M Vital Farmland III (Fund III). This initiative is set to revolutionize the agricultural landscape by converting traditional, chemical-dependent farms into sustainable, organic operations.
A Deep Dive into the Fund’s Objectives:
- Transforming Conventional Farms: The company’s primary goal with the new fund is to turn conventional farms that rely heavily on chemicals into models of organic and regenerative agriculture. This approach is expected to boost cash flows and land values, catering to the increasing consumer preference for organic products.
- Impressive Past Performance: Farmland LP isn’t new to the game, currently managing over 16,000 acres with assets valued at approximately $250M. Their previous venture, the Vital Farmland LP (Fund I), reported a commendable net average after-tax return of 113% to its original investors.
- Sustainability at the Forefront: “Our strategy is simple yet effective. We take conventional farms and transform them into models of organic and regenerative agriculture. This offers substantial financial benefits and promotes environmental stewardship,” remarked Craig Wichner, CEO of Farmland LP.
- Catering to Investor Interests: With sustainability becoming a buzzword, more investors are leaning towards eco-friendly ventures. Tom Sullivan, Managing Director of Capital Markets and Investor Relations at Farmland LP, highlighted this trend: “Driven by robust investor interest in high-performing, sustainability-focused farmland investments, the company continues to experience accelerated growth. Our new fund provides a unique opportunity for investors to tap into this high-potential asset class.”
- Genuine Commitment to Green Practices: The company ensures verifiable sustainability claims in an era where greenwashing is a growing concern. The company’s adherence to Certified Organic standards and a focus on soil health-centric regenerative farming practices assures investors of their genuine commitment to advancing sustainable agriculture.
In a world where sustainable practices are becoming the norm, this new fund is poised to set new benchmarks in organic and regenerative farming.
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Photo by Tim Hüfner on Unsplash
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