Download - Community investment and CSA’s Paul Sander-Jackson Executive Director, Wessex Community Assets
Community investment and CSA’s
Paul Sander-JacksonExecutive Director, Wessex Community Assets
Layers of the CSA
Landowner
Farmer/grower
Customer
Land
Sales and distribution
Farm enterprise
The land
Land
• Ownership providing long term tenure
• High initial cost (SW - £4400 per acre)
• Long term investment• Low risk• Low financial return
(average FBT £150 per acre = 1.4%)
• Social returns
Fordhall Farm
• £ 800,000 invested• Over 8000
members/investors • No financial return on
investment • Is it replicable?
Farm Enterprise
• Investment in the enterprise running the farm – e.g. stock, machinery
• Medium term (5-10 years)
• Some risk• Appropriate financial
return for investors?• Social returns
Tablehurst and Plaw Hatch Farm
• Community investment of over £150,000
• Over 400 member/investors
• Shares of £100 • Direct community
involvement in the farms
Distribution and marketing
• Investment by members in share of annual crop
• Short term – annual investment
• At risk – weather, crop failure
• Finance for those who cannot pay upfront
• Social returns
Community share issues…• Wessex have developed a model for
raising share capital at low cost• This means members of a community
can invest directly in community projects and services
• It is cheap to set up and acceptable to independent financial advisors
What works?• Track record of organisation & people• Clarity of offer• Blended financial, social and
environmental return• Access to suitable target investor
groups• Effective marketing
CSA and community investment – a good fit ?
CSA• Sharing of risk
between grower and customer
• Needs strong loyal customer base
Community investment
• Involves members in sharing financial risks
• People buying in through membership and ownership of organisation
But……
• Do you want democratic ownership and control for a farm?
• How do you allow farmers and growers to make the decisions they need?
• How do you secure long term tenure? Is ownership affordable?
• Double risk if you invest in enterprise and crop share?