Why Toniic members invested in Conservation Resources’ Impact Agriculture Strategy
Agriculture is one of the largest emitters of global greenhouse gas emissions, often estimated at 10%. The industrial farming system contributes to environmental degradation, such as air and water pollution, soil depletion, diminishing biodiversity, and fish die-offs. In the US, according to the USDA, less than 1% of farmland is farmed organically, with even less farmed in a regenerative fashion.
Our friends at Investing in Regenerative Agriculture and Food define Regenerative Agriculture as a system of agricultural practices and principles that go well beyond organic farming and focus on increasing ecosystem health and improving nutrients in foods, which almost become a by-product of the planet’s restoration.
According to the Noble Research Institute, the benefits of regenerative farming include:
- Increased soil organic matter and biodiversity
- Healthier and more productive soil that is drought- and flood-resilient
- Decreased use of chemical inputs and subsequent pollution
- Cleaner air and water
- Enhanced wildlife habitat
- Carbon captured in the soil to combat climate variability
Conservation Resource Partners, LLC
Conservation Resources won the Global Farmland Deal of the Year and Americas Farmland Deal of the Year for the 2022 Agri-Investor Global Awards
Conservations Resources was founded in 2004, raising $1.2 Billion across six funds focused on Sustainable Real Assets. Across 38 portfolio investments to date, Conservation Resources has invested in over 1 million acres, protected over 1,300 miles of rivers and streams and over 440,000 acres of critical habitat and sequestered over 53 million metric tons of CO2e.
Conservation Resources’ Impact Agriculture Strategy
Conservation Resources’ Impact Agriculture Strategy seeks to invest in US farmland using their impact focus with the goal of generating excess returns (“alpha”) and committed to organic and regenerative farming practices.
The Strategy is designed to invest in institutional quality farmland properties in the United States including row crop, permanent crop and pasture lands. All investment properties are farmed organically and/or regeneratively and pursue certification for these sustainable farming practices.
The Impact Strategy expects to use additional value drivers to generate excess returns, or “alpha” relative to the mean return for the farmland asset class, as measured by the NCREIF Total Farmland Index.
Although not an EU-based fund, Conservation Resources has voluntarily pursued the implementation of the EU SFDR including Article 9 metrics.
Last year, Conservation Resources won the Global Farmland Deal of the Year and Americas Farmland Deal of the Year for the 2022 Agri-Investor Global Awards. They purchased Moxee Valley Orchards — a 700-acre organic apple property in Washington State. Conservation Resources is working to support native bees on the farm, establishing over 60 acres of native pollinator habitat, thus making it one of the largest pollinator blocks of its kind in the region. The project was established in partnership with the North Yakima Conservation District and the Washington Department of Fish and Wildlife, as well as the non-profit Xerces Society.
Investments from Toniic members
In my research, this is the first Regenerative agriculture strategy that focuses on real assets (ownership of land) and actual change in use of the land
Toniic continuously encourages private investors within the Toniic community to refer firms and deals that they have invested in to Toniic’s Investment Programs.
After making a commitment to Conservation Resources’ Impact Agriculture Strategy, Toniic members Rebecca Buyers and Nils Johnson were keen to share their due diligence experience with Regenerative and Organic farming focused impact investors within Toniic.
Rebecca Buyers and Nils Johnson:
“We like Conservation Resources’ Impact Agriculture Strategy of building a diverse portfolio of properties which combine organic, regenerative and conservation techniques. We believe their ‘secret sauce’ will generate both higher alpha and improved environmental outcomes for investments within the strategy. This strategy ticks all the boxes for both financial performance and impact, appealing to a broad spectrum of individual and institutional investors.”
Through Toniic’s Investment Program, Toniic member Naomi G. was able to learn about Conservation Resources’ Impact Agriculture Strategy, speak with the Conservation Resources team as well as hear about a Multi-Family Office’s insights about their Due Diligence on the firm and strategy. Naomi also connected directly with Rebecca and Nils.
Naomi G.:
“We focus on impact investments in the climate space, ranging from agriculture to energy solutions.
Most of our private equity investments have been in funds we have found through Toniic, because Toniic helps me filter “greenwash” from real opportunities.
Conservation Resources’ Impact Agriculture Strategy was an opportunity that came our way through Toniic. We made a commitment to Conservation Resources’ for several reasons:
— The strategy really fits into our portfolio from a theme perspective (climate /agriculture), as well as from an asset allocation perspective (real assets in North America).
— In my research, this is the first Regenerative agriculture strategy that focuses on real assets (ownership of land) and actual change in use of the land. It is also the first Agriculture themed strategy I’ve found that has a promising double bottom line. To make the change in mass agriculture market, the double bottom line needs to be proven and it looks like Stavros and his team are up for that mission: both in business experience, as well as deep understanding of land, water and biodiversity.”
About Toniic:
Toniic is a global community of private asset owners seeking to steward wealth and use influence to enable a thriving world. Our members — more than 500 high net-wealth individuals, family offices and foundations from more than 25 countries — are active impact investors and philanthropists, for whom Toniic provides education, investment opportunities, impact support, events, and community. Toniic also seeks to build the field of deep impact investing, moving money and mindsets and leading by example.
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