Environmental and Social Impact

Area One’s mission is to support and empower Canadian family farms to grow through investment.

Canadian family farms require capital to expand their farms, improve their land’s productivity, and invest in technology, equipment, and infrastructure. Many family farms need to grow to accommodate the next generation of farmers. For example, if there are two generations of farmers with three adult children who want to farm, the size of the family farms needs to triple in size to accommodate the children. Many farmers are approaching retirement and planning for succession. Younger farmers need capital to buy out these retiring farmers. Family farms also need to grow because larger farms are more competitive and efficient.

Canadian family farms are fundamental to Canada’s economy, prosperity, and independence. There are an estimated 190,000 farms in Canada. They employ over 250,000 people in rural communities and support an agri-food system that employs over two million people, or one in nine Canadians. The agri-food system generates around 7% of Canadian GDP ($140 billion). Most farm produce is exported: Canada dominates global wheat, canola, mustard, flaxseed, lentils, peas, and maple product markets. Agriculture and food product exports amount to $90 billion a year, supporting Canada’s trade balance with the rest of the world and the strength of its currency. Canadian farms also supply the food Canadians eat. Farmers promote environmental sustainability as they are stewards of biodiverse ecosystems, home to thousands of species.

Area One Farms partners with farmers by providing them with capital to expand their farms, improve their land’s productivity, and invest in technology, equipment, and infrastructure. Area One and the farmers (who are “Farm Partners”) form farm partnerships, to invest in, own, and operate the farms together.

Area One’s partnership approach therefore helps fund the growth of family farms across Canada, with the aim of fostering tangible social benefits for rural communities and generating sustainable value for investors. The partnerships empower Farm Partners with a path to long-term land ownership. Farm Partners gain from equity appreciation on co-owned land. They have the right to buy out Area One’s interest in partnerships at the end of their terms and benefit from the partnerships’ profit-shares and capital incentives. They should reap the rewards of economies of scale from farm expansions. Younger farmers will benefit from opportunities to farm new land through succession funding. Area One’s investment creates value for farmers through capital improvement. It helps farmers keep hold of their family farms who would otherwise have been forced into selling land owned by their families for generations. In certain cases, Area One can support farmers who are experiencing financial difficulty by helping stabilize them financially through investment and by reducing their debt leverage. In all cases, Area One helps farmers with advice, mentorship, and development.

Area One uses the UN’s Sustainable Development Goals (“SDGs”) and the Global Impact Investing Network (“GIIN”)’s IRIS+ framework for agriculture (IRIS+ Agriculture Impact Performance Benchmark) to manage, measure and report the impact of its investments.

Click the button to download a copy of Area One Farms’ Responsible Investment Policy.

The firm and its operations align with the UN Sustainable Development Goals, specifically as follows:

No Poverty (SDG #1) – Area One supports rural farming communities across Canada, helping to provide living wage jobs (1.2). We help to build resilience and reduce the vulnerability of farming communities to the economic shocks of climate-related extreme events (1.5). Furthermore, through our partnership model, we support the ownership and control over rural farmland to retain decision-making power and economic benefits in local communities (1.4).

Zero Hunger (SDG #2) – As primary producers, we are growing food to feed the world (2.2). In addition, we support sustainable food production systems that increase productivity and strengthen the capacity for adaptation to climate change (2.4).

Gender Equality (SDG #5) – As a women-led organization, we stand to end all forms of discrimination women and girls everywhere (5.1). Our continued support of family farm succession supports women’s access to ownership and control over farmland (5.a).

Decent Work and Economic Growth (SDG #8) – By ensuring farmland interests stay in the hands of rural farming communities, we support the creation of quality living wage jobs (8.3). We ensure the protection of labor rights and promote safe and secure working environments for all farm workers (8.8).

Industry, Innovation and Infrastructure (SDG #9) – Our unique partnership model provides farmers access to preferable financial service that promotes the growth and expansion of agriculture enterprises (9.3).

Responsible Consumption and Production (SDG #12) – We support farmers who are invaluable to the sustainable management of soil and water resources across Canada (12.2). Our farm partners follow strict guidelines to ensure environmentally sound management of chemicals and all wastes to reduce their release into air, water and soil (12.4). In addition, we support technology that reduces post-harvest food losses (12.3).

Climate Action (SDG #13) – We have a focus on strengthening the resilience and adaptive capacity of farm enterprises to climate-related hazards (13.1). Furthermore, through our focus on regenerative agriculture, we seek to leverage agriculture’s capacity to sequester carbon and help to reverse climate change.

Life on Land (SDG #15) – We bring degraded lands back into production, restoring land and soil resources (15.3). Through revegetating land, we increase plant biodiversity and provide additional food sources for animals in the winter. (15.5).