Invest in Farmers was founded in Australia where over $25 million has been invested in more than 400 different opportunities.
Invest in Farmers has expanded to New Zealand is now getting a foothold in Canada.
Lindsay Skabar, the CEO of IIF Canada, said the investments also provide insights on agriculture for consumers.
"We invest in what it takes to grow this season and depending on the farmer that can be in livestock, it can be horticulture, it can be cropping or aquaculture. Basically if it grows and there's risk associated to the season, that's how we like to play and that's also where the industry needs more support. They need more creative tools in order to be able to advance agriculture in Canada." said Skabar, adding it's a profit-sharing venture.
"The way it functions is when we're talking to a producer, we get an understanding of what their season looks like and what different growth opportunities they have ahead of them. We can provide capital at the beginning of the season so that they can farm as usual. They provide updates to the investors themselves, take it to market as usual, and then it's a profit share at the end. The farmer keeps 50% of the profit of our portion of the investment, and then 50% comes back and is provided back to the investors and ourselves."
Investors only cover 50 per cent of the cost, but if an investment has a loss, they cover that part of the downside.
Right now, in Canada, investments can only be made by institutions, accredited investors, friends and family, but investment opportunities are expected to open up to everyone soon.
Skabar said Invest in Farmers is actively looking for farm enterprises in which to invest.
"We're having conversations with producers right now to make sure that we are focused on those operations where we can provide the most value and have the biggest impact. So we are actively talking to some of the most business-minded producers across Canada, and that is something that's very interesting in our model is that we are coast to coast to coast. Therefore, it's less about the size of the operation, more about the business-minded nature of the farmer. When we find someone that is a great partner and there's a great opportunity to have an impact, that's what we're looking for.”
“We come to the table as a partner, we're not looking to replace debt, we're not looking to replace insurance. In fact, we work really well alongside both of those things and just offer a brand new way, a different type of capital that producers don't have access to today so that they can grow their operations and live the vision that they are creating without waiting for the perfect time.”
More information and contacts for Invest in Farmers Canada can be found at ca.iif.today.
