“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.
“If what you need is equity for growth or a way to grow where you also own part of it, as opposed to building it on rented land, we are your very best option.”
“I ended up with this idea of a true partnership that injects capital into the farm to enable growth while maintaining the land base control with the farmer,” Faulkner says. “The farmer still owns the portion of land he or she can afford, and any profit and capital appreciation that is created by the partnership is shared equitably by the farmer and the investor.”
