“The challenge is the cost for that next generation to get into the business, especially if their parents are still farming,” Holt said. Farmers tend to be asset rich, but cash poor, which poses a challenge because of the upfront investment, including the cost of land and equipment, associated with expanding today’s multi-million dollar farms, he added.
Advisors seeking an asset class with low correlation to the market need to look no further than one of Canada’s greatest assets – it’s land. Joelle Faulkner, CEO of Area One Farms, provides financing, private equity and growth capital to the farming community.
“With Joelle, we work as a partnership,” said Mr. Cole, whose farm comprises 8,000 acres of grain production plus pasture for cattle. “It works very well because we understand each other, we know which side each of us is good at and we can make it work to make us both better.”
Joelle Faulkner, founder and CEO of Area One Farms joins BNN Bloomberg to discuss how her business is working to help Canadian farm families grow. She is also one of Canada’s Top 40 Under 40 honourees.
Of course, innovation extends beyond technology. Joelle Faulkner is founder and CEO of Area One Farms Ltd., which provides financing, private equity and growth capital to the farming community. “Many of these businesses are asset-rick because farms have been in families for generations,” says Hughes. “What she’s doing uniquely to help finance transitions and expansions and how she supported farmers through the pandemic to help keep grocery stores open and food on the table is an example of the innovative spirit of Top 40 honourees.”
We hope that you’re enjoying your web-dive into farmland investing, ESG investing, impact investing, non-correlated investments, or investments for institutions – whichever led you to us. Our firm, Area One Farms, aims to make non-correlated, impact investments into farmland in the most sustainable and highest value way: by forming equity partnerships with top-performing Canadian farmers.
Our innovative solution for investing in farms is socially responsible: it is keeping farmland stewardship and appreciation in local communities. The firm’s unique approach to farmland investing is built on the principals of shared-value and is recognized as an impact investment by leading investors, foundations and endowments, as noted by McConnell Foundation here.
Area One is an industry leader in ESG. As a signatory to the UN PRI (Principals of Responsible Investing) and to the TCFD (Task Force of Climate Related Financial Disclosures), we measure and report on our ESG impact annually. Our partnership model means that we keep decision making local, which leads to better environmental outcomes. Moreover, Area One supports multiple farm families as well as their employees which betters social outcomes for the rural communities where we operate.
Designing an agriculture investment model that would appeal to farmland investors was a product of Area One’s approach, but not the reason for it. The original objective was to create an investment that would greatly benefit farmers. The safe, stable, inflation-hedging, non-correlated assets and returns for investors are a product of our approach which provides such rewards that industry participants have experienced in the past.
Joelle Faulkner, Founder & CEO, understands Canadian farmers’ points of view because she comes from a farm, as do the many generations before her. Drawing on her personal experiences and knowledge (including degrees in Engineering, Business, and Law from Western University, Oxford University, and Stanford University), she designed Area One’s investment philosophy to suite farmers, but developed a win-win for farmers and investors alike. Consequently, the firm has gained an unprecedented reputation among Canada’s agricultural industry and within rural communities across the country.
Area One has found itself to be particularly sought-after for three scenarios:
Area One’s long-term approach lends itself well to institutional investor mandates who seek stable investments, particularly investments for pension plans, investments for insurance companies, investments for foundations, and investments for endowments. Moreover, as Area One seeks to increase its impact through ESG investments, the firm continues to only invest in areas with 100% water sustainability, with farmers who are conscious about making good environmental decisions, and in a manner that supports multiple families and personnel.
We are investing in farmland and investing in agriculture businesses for the future. Area One’s forward looking approach ensures that we are always innovating and adapting to the times. We are excited to continue to execute on our farm investing mission while striving to expand our reach. If you are an interested investor or farmer, please explore our website and contact us at gp@areaonefarms.ca or 416-583-5873.
Area One Farms operates private equity funds in the Canadian farmland sector. They partner with established farm operators to acquire off-market farmland, enabling family farms to expand and improve their financial returns while incorporating sustainable practices. This interview with CEO and Founder, Joelle Faulkner, has been edited for length and clarity.
