LandFund Partners launches open-end Soil Enrichment Fund
LandFund Partners (LFP), a farmland investment company, has launched LFP Soil Enrichment Fund (SEF), an open-end fund seeded with over USD125 million of farmland and over 20,000 cultivated acres.
LFP’s first four funds generated a dollar-weighted net annualised return of 15.1 per cent. LFP plans to grow the Soil Enrichment Fund to over USD1 billion of assets.
“Our increasing scale allows us to negotiate better rents, secure lower financing costs and get a first look at new properties – all of which lead to higher returns for our investors,” says John Farris, Founder & CEO of LFP. “We will employ best-in-class regenerative agricultural practices to create healthier soils and more climate-friendly farms. This is not only the right thing to do, it will make our land more valuable.”
All 20,000 acres have been enrolled in a project listed with Climate Action Reserve in order to be eligible for generating carbon credits in accordance with the highest standards in the US carbon markets. The project is the first large-scale carbon credit program in Mississippi River Valley. Most SEF farms will be eligible to receive carbon credits starting in 2021 and beyond.
“New climate-friendly farming practices have the potential to increase yields, decrease input costs and generate carbon credits,” says Chris Morris, President & COO of LFP. “SEF is a ‘Win’ in three categories: better for our farmers, better for our investors, and better for our planet.”
SEF’s farmers are employing practices that will improve soil health while sequestering and reducing greenhouse gases (GHGs). Studies and research conducted by The Soil Health Institute, Sustainable Agriculture Research & Education (SARE), No-Till Farmer and others have shown that regenerative farm practices can lead to both increased revenues and decreased expenses over time.
Larry McClendon of McLendon Land Co farms over 6,000 acres for SEF. “We started piloting regenerative practices on our LandFund farms in 2019. We have steadily increased the number of acres employing regenerative practices, such as cover cropping and reduced tillage. I’m really encouraged by the early results. We are seeing a positive impact on the land and on our bottom line.”