Organic Farming as a Long-Term Investment: How Iroquois Valley Supports Farmers

Despite growing consumer demand, organic farming accounts for less than 1% of U.S. farmland. The transition to organic production is both costly and time-intensive, hampered by short-term land leases and barriers especially for younger and first-gen farmers. Iroquois Valley, a real estate investment trust (REIT) and public benefit corporation, addresses these challenges by providing long-term, farmer-friendly land leases that enable soil regeneration and organic certification.

The Challenge of Organic Transition

• Organic certification requires land to be free from chemical residues for at least three years.
• Soil health restoration is a gradual process demanding multi-year commitment.
• Most U.S. farmland leases last only one year, creating instability and discouraging practices like conservation and regeneration.

Iroquois Valley’s Model: Long-Term Leases for Sustainable Farming

• Offers leases averaging six years with “evergreen” renewal options, providing stability.
• Aligns farmer interests with investor goals by focusing on long-term stewardship and consistent financial returns.
• Since 2007, supported organic conversion of over 36,000 acres across 19 states with investments totaling approximately $127 million.

Investor Participation and Social Impact

• Supported by about 1,000 impact-driven individual and institutional investors.
• Investment options include equity shares in the REIT and fixed-income “Rooted in Regeneration Notes,” targeting socially disadvantaged farmers (including BIPOC growers).
• Investment minimums range from $10,000 to $9 million, accessible to accredited and non-accredited investors.

Measurable Environmental and Economic Benefits

Iroquois Valley shared compelling data showcasing organic farming’s positive impacts over 10 years:

• 29 million pounds of synthetic chemicals eliminated.
• 100,000 metric tons of carbon captured from the atmosphere.
• 700 million gallons of water retained in soil.
• 30% increase in wild bee populations; 20% rise in native birds.
• 95,000 tons of topsoil preserved.
• $30 more earned per acre for farmers compared to conventional farming.

Empowering the Next Generation of Farmers

• Approximately 65% of Iroquois Valley’s farmers are Millennials or Gen Z, many first-generation farmers.
• Access to land is a critical barrier, especially with high financial hurdles from traditional lenders.
• Programs like “Rooted in Regeneration” provide discounted mortgages and support for farmers under USDA’s socially disadvantaged category.
• Examples include Justin Butts, a US Navy veteran who secured land and funding to operate an organic livestock farm in New York, and Adam Roberts, an experienced organic grain producer who partnered for a long-term lease.

Commitment to Organic Certification

• Iroquois Valley strongly advocates for USDA organic certification as a crucial, legally enforceable standard ensuring trust and market accountability.
• Organic farming delivers documented environmental benefits: improved soil, cleaner water, increased biodiversity, and carbon sequestration.
• While some farmers adopt additional regenerative certifications, Iroquois Valley maintains that organic certification remains the essential foundation underpinning ecological and financial success.

Conclusion:
Iroquois Valley’s innovative approach addresses the structural hurdles of organic farming by providing stable, long-term land access paired with impact investment opportunities. This model not only facilitates the transition to organic agriculture but also empowers new generations of farmers and delivers measurable ecological benefits, positioning organic as a true long game in sustainable food production.

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