November 19, 2024
Aligning Environmental Impact with Long-Term Financial Growth Through FarmTogether
Amid escalating challenges like climate change, water scarcity, and soil degradation, sustainable agriculture practices have become essential to safeguarding the long-term productivity and resilience of U.S. farmland, a cornerstone of the nation's food supply. However, effectively implementing these climate-smart practices demands substantial capital investment and strategic expertise.
FarmTogether is uniquely positioned to address this need, offering innovative opportunities for investors to achieve financial returns while supporting environmental responsibility. By channeling capital into farmland, we facilitate data-driven management and sustainable practices—such as water conservation, soil health enhancement, and advanced farming techniques—that can improve operational efficiency, strengthen ecosystems, and contribute to building resilient, sustainable food systems.
Guided by a rigorous sustainability framework, we strive to preserve farmland assets and enhance their valuation, making sustainable agriculture both impactful and profitable. Through our commitment to sustainability, we advocate for agriculture as a foundation of enduring environmental, social, and financial well-being.
FarmTogether’s Foundational Sustainability Pillars
FarmTogether’s framework is built on six core pillars that guide our approach to managing farmland in ways that align environmental stewardship with financial growth:
- Efficiency: By utilizing advanced precision agriculture technologies, we aim to reduce waste and optimize inputs like water and fertilizer, promoting responsible and effective resource use. Our focus on efficiency not only lowers operational costs but also minimizes the environmental impact of each farm.
- Integration: We embed our sustainability pillars throughout each stage of the investment lifecycle, prioritizing sustainable practices from acquisition through management to exit.
- Financial Responsibility: We seek investments that align sound financial principles with environmental goals, aiming for our properties to generate consistent, long-term value for our investors. This focus on responsible finance enables us to pursue strong returns while safeguarding the integrity of the land.
- Governance: Each of our farm managers adheres to rigorous environmental and ethical standards that enforce low-input, sustainable farming practices. Our commitment to governance ensures transparency and accountability.
- Collaboration: We partner closely with local farm managers, providing them with the guidance, training, and resources necessary to execute our sustainability strategies. This collaborative approach helps us enhance the benefits of each investment for all stakeholders.
- Ethics: We maintain high ethical standards across all operations, ensuring fair treatment of employees, contractors, and neighboring communities. This approach fosters a positive impact that extends beyond the boundaries of our properties.
Sustainable Agriculture Within Our Portfolio
Sustainability is integral to our management processes. By embedding sustainable practices and techniques across our portfolio, we aim to enhance operational efficiency and build long-term resilience across our properties:
- Regenerative Agriculture: Across our portfolio, we have implemented regenerative practices such as cover cropping, rotational grazing, and composting. These techniques improve soil health, increase carbon sequestration, and support biodiversity, helping to make our farmland more resilient to environmental stressors. For example, at Vista Luna Vineyard, managed grazing is used to enrich soil organic matter, enhance biodiversity, and contribute to both environmental and economic sustainability.
- Precision Agriculture: FarmTogether uses cutting-edge precision agriculture technology, including GPS-enabled tractors and satellite imagery, to optimize input application and reduce waste. By applying resources precisely where they are needed, we can minimize our environmental footprint while boosting efficiency.
- Organic Farming and Reduced Chemical Inputs: Many of our properties are either certified organic or in the process of transitioning to organic certification. Organic farming practices eliminate synthetic fertilizers and pesticides, fostering soil health and biodiversity while also providing access to premium markets for our produce.
- Efficient Irrigation and Water Conservation: Water is a critical resource, particularly in California. Across our portfolio, we employ advanced irrigation systems, such as micro-drip technology, to ensure water is used efficiently and effectively. These systems deliver water precisely to the root zones, minimizing evaporation and runoff, which conserves resources and supports crop health during drought conditions.
- Biodiversity and Habitat Management: Biodiversity is an integral part of our farming practices. We support local ecosystems by installing owl boxes, creating pollinator habitats, and reducing chemical use. This promotes a balanced, self-regulating environment that naturally controls pests and improves soil health.
Industry-Leading Sustainability Certifications
FarmTogether’s commitment to sustainability is further reinforced by our adherence to industry-recognized certifications. We collaborate with respected certification bodies that provide third-party validation of our sustainable practices:
- Leading Harvest: 100% of our agricultural operations have been certified in conformance with the Leading Harvest Farmland Management Standard, a rigorous, third-party certification that evaluates key sustainability metrics such as soil health, water management, and biodiversity conservation. Leading Harvest is recognized across the agriculture industry for its comprehensive approach to sustainable land management, focusing on continuous improvement and adaptability to evolving environmental and social challenges. This certification not only reflects our commitment to high environmental and social standards but also reassures our investors of our dedication to sustainable practices that support both ecological integrity and financial performance.
- LODI Rules: Our CA vineyards adhere to the LODI Rules for Sustainable Winegrowing, one of the wine industry's most comprehensive and rigorous certification programs. These standards guide sustainable farming practices focused on soil health, water management, pest control, and biodiversity conservation. By following the LODI Rules, we not only enhance the quality and resilience of our vineyards but also contribute to the long-term environmental and economic sustainability of our winegrowing operations.
Sustainable Farmland for Long-Term Growth
The increasing global demand for food, combined with the finite supply of arable land, makes farmland a compelling asset for long-term capital appreciation. Sustainable farming practices, in particular, hold significant potential for farmland’s value appreciating as environmentally responsible practices boost productivity and maintain soil health. These practices not only contribute to ecosystem resilience but also help safeguard the asset’s long-term profitability.
Regions renowned for their high agricultural productivity and robust infrastructure—such as the Corn Belt, California’s Central Valley, and the Pacific Northwest—offer strategic opportunities for investors. Farmland in these areas is well-suited to benefit from ongoing appreciation, driven by both increasing scarcity and the need for efficient, high-yield food production systems.
Looking ahead, the outlook for farmland remains highly favorable. With global food demand expected to rise by 60% by 2050 and the availability of arable land per capita decreasing, farmland values in prime agricultural regions are likely to continue appreciating. In 2022 alone, U.S. cropland values saw a significant increase of 14.3%, reaching a record $5,050 per acre, according to the USDA. Some states experienced even stronger growth, with values rising by over 25%, underscoring the long-term investment potential of farmland.
FarmTogether: Delivering Long-Term Value and Sustainable Impact
Farmland's historical resilience and capacity for sustainable management make it a strategic, valuable asset for diversified investment portfolios. FarmTogether offers individual and institutional investors access to professionally managed farmland assets that balance strong financial performance with responsible stewardship. Our proven approach aligns long-term financial growth with meaningful environmental impact through sustainable practices.
Click here to see farmland's historical performance, visit our FAQ to learn more about investing with FarmTogether, or get started today by visiting ways to invest.
Disclaimer: FarmTogether is not a registered broker-dealer, investment advisor or investment manager. FarmTogether does not provide tax, legal or investment advice. This material has been prepared for informational and educational purposes only. You should consult your own tax, legal and investment advisors before engaging in any transaction.
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