David Miller, Iroquois Valley Farms

Exploring Iroquois Valley Farms: A Restorative Farmland Finance Company

Introduction

• Welcome to the latest episode of the Impact Financial Planners podcast.
• In this episode, we’ll dive into a conversation with Alex McKay, the Director of Business Development and Investor Relations at Iroquois Valley Farms.
• Iroquois Valley Farms is a unique real estate investment trust (REIT) specializing in organic farmland finance.

A Partnership with Purpose

• Iroquois Valley Farms, a REIT, owns organic farmland.
• They raise funds from private accredited investors to provide land access to organic farmers looking to establish or expand their operations.
• A key focus is the transition of conventional farmland into certified organic land.
• Organic certification ensures the land’s long-term environmental and economic health.

Supporting Organic Agriculture

• Iroquois Valley Farms acquires both conventional farmland for conversion and already certified organic land.
• They may purchase land that can achieve organic certification more quickly due to its prior farming practices.
• Farmers who work with Iroquois Valley Farms are required to transition their farmland to USDA-certified organic.
• The organization’s commitment to this process is one of its unique features.

Holistic Support for Farmers

• While Iroquois Valley Farms specializes in land financing, they do not offer working capital, credit lines, or equipment financing.
• Their primary goal is to secure land for farmers, a significant barrier for many due to the rising costs of farmland.
• By providing this stability, they enable farmers to access capital for other aspects of their operations, such as processing facilities or storage.

Putting Farmers First

• Iroquois Valley Farms stands out by placing the farmer at the center of its operations.
• They do not speculate on land but react to farmers’ needs.
• This approach fosters long-term partnerships with farmers.
• This strategy is fundamentally different from traditional agriculture finance.

Farmers and Farm Sizes

• Iroquois Valley Farms works with medium-sized farms, typically ranging from 50 to 150 acres.
• These farms vary in price from $500,000 to $1.5 million, with some exceptions.
• Most of the farms serve wholesale markets, supplying products to distributors, processors, and wholesalers.
• Farmers might also engage in direct trade or farmers’ markets, diversifying their revenue streams.

Lease and Ownership Terms

• The organization offers both leases and mortgages.
• Leases typically start with a three-year term, then become evergreen, providing stability to farmers.
• After seven years, farmers have the option to purchase the land at market rates.
• This model minimizes the risk of the land being sold out from under them.

Investing with Iroquois Valley Farms

• Iroquois Valley Farms accepts investments from accredited investors.
• The minimum investment for their accredited investors starts at $30,000.
• They also offer fixed-income products known as Soil Restoration Notes.
• These are five-year term offerings with a two-and-a-half percent annual return.

Increasing Accessibility

• Iroquois Valley Farms is working on a Regulation A+ offering to make investments accessible to non-accredited investors.
• The goal is to reduce the minimum investment to $10,000.
• The organization is making efforts to facilitate investments through third-party custodians such as Fidelity and TD Ameritrade.
• Eventually, they aim to be available through larger investment platforms.

Contact and More Information

• For more information or inquiries, you can reach out to Alex McKay via email at Invest@IroquoisValleyFarms.com.
• The Iroquois Valley Farms website is a valuable resource with more details about their offerings.
• They are also launching an online investor portal in the coming weeks for convenient investments.

Closing Thoughts

• Impact investing, especially in farmland, holds great potential for both investors and the environment.
• Investing in organic farmland helps address the challenges of traditional farming while making a positive impact on communities and the food system.
• Iroquois Valley Farms is at the forefront of this movement, bridging the gap between sustainable agriculture and investors looking to create meaningful change.