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Company No:9456728 t: 07808168562 e:[email protected]

Red Pig Farm

Business Plan and Investment Offer:

Interest-Bearing Loan

The Agroecology Land Initiative is taking on its first project Red Pig Farm, Llandeilo, Wales.

Building upon the existing assets of the farm we intend to develop a model of co-sufficient

community farming based upon agroecological methods and a regenerative economic

approach to the creation of rural enterprise.

We are seeking additional members to provide further equity investment.

We are looking for financial assistance in the form of interest bearing loans to help with the

purchase of the land.

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Table of Contents Preface ............................................................................................................................................................................ 3

Summary......................................................................................................................................................................... 4

What is the business plan? ............................................................................................................................................. 5

How does the Company make money? .......................................................................................................................... 6

Who is involved?............................................................................................................................................................. 6

How will business growth be managed? ......................................................................................................................... 8

What are social and environment returns? .................................................................................................................... 8

What has happened so far? ............................................................................................................................................ 9

How has money been spent?.......................................................................................................................................... 9

How will this loan finance be spent? .............................................................................................................................. 9

How will we afford to cover the running costs during the start-up period? ................................................................... 9

Budget ......................................................................................................................................................................... 10

Cash-flow forecast for purchase and development 2015 -2016 ................................................................................... 10

Investor Returns ........................................................................................................................................................... 11

What could go wrong? .................................................................................................................................................. 11

Contact Us .................................................................................................................................................................... 11

Appendix I: Interest bearing loan Investor FAQs .......................................................................................................... 12

Appendix II: Businesses and Rural Enterprise ............................................................................................................... 13

Appendix III: Risk Statement ......................................................................................................................................... 18

Application for Interest Bearing Loan ........................................................................................................................... 21

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Preface

Thank you for your interest in the Agroecology Land Initiative.

The Agroecology Land Initiative (ALI) is in advanced negotiations for the purchase of Red Pig Farm, Llandeilo, Wales,

which is intended to become the location for a community co-housing project combining the research and

development of applied agroecological methods to produce food, fuel and fibre – and to do so using systems that are

not merely sustainable, but that actively repair and regenerate the degraded ecosystems we live with today.

The converging issues of food, energy and soil security we are facing today1 necessitate a new approach to farming

and energy production, and a new relationship with the land. The ALI is an organisation created to advocate and

implement agroecological methods in the UK to help secure food sovereignty,2 energy independence, and

environmental regeneration in a way that is financially viable and socially just. We envision the regeneration of both

the countryside and rural economies through the creation of co-sufficient community farms rooted in agroecological3

production.

At the heart of our endeavour is the principle of co-sufficiency, both within the farm community and in its relationship

with the wider community. Progressive financial, legal and governance structures will enable the farm to incorporate

multiple mutually supportive and synergetic rural enterprises, thereby making full use of the productive capacity of

the land.

The local community will be served by the development of successful rural businesses and by biomass production as

a means to meet local energy demands – there is also the potential to collaborate with a community Energy Services

Company (ESCo) towards the development of local small scale local heat and power generation. It is anticipated that

this will be a significant factor in winning support for our project both from the local community and from the local

authorities.

The ALI project is currently seeking additional residential members and further financial assistance to help fund the

timely purchase of the farm and initial capital costs.

1United Nations Conference on Trade and Development, Trade and Environment Review 2013; http://unctad.org/en/PublicationsLibrary/ditcted2012d3_en.pdf 2Food sovereignty is defined as “the right of peoples to healthy and culturally appropriate food produced through ecologically sound and

sustainable methods, and their right to define their own food and agriculture systems” (La Via Campesina). 3Agroecology is “the application of ecological concepts and principles to the design and management of sustainable agro-ecosystems”

(Gliessman, 1997).

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Summary

Company Information

The Agroecology Land Initiative Ltd non-profit Co-operative Company Limited by Guaranteeregistered under the Companies Act 2006

Registration number: 9456728

Registered Office: Werndolau Farm, Golden Grove, Dyfed, SA32 8NE

Committee

Management Committee: James Scrivens, Sara Tommerup, Matt Cummings, Sonia Ashworth

Advisors: Jackie Carpenter (Business Consultant), Rob Coventry (Forestry Consultant)

Bankers: Triodos Bank

Business Sector

Property Development, Agriculture, Forestry

Business Description

Our aim is to demonstrate a model of collective ownership and property development to establish low-impact co-sufficient community farming projects and to facilitate rural regeneration by developing agroecological methods of farming, forestry and rural enterprise.

Our business model is an adaptation of a cohousing co-operative applied to the purpose of a developing a co-ownership community farm. With this we hope to demonstrate an efficient and flexible method of financing for rural enterprise and low impact development.

Investment SoughtWe are currently seeking financial investment in the form of long-term interest bearing loans from £1000 to £50,000 to help with the purchase of the land.

Projected ReturnsInvestors will receive up to 2% p.a. on loan finance.

Social Returns

This investment is an opportunity to support the development of agroecological solutions to the convergent social and ecological challenges of our times. Please see our Brochure for details on the social and environmental returns from an investment in the Agroecology Land Initiative: Red Pig Farm.

The TeamJames Scrivens is acting secretary and project co-odinator and Sara Tommerup is our Treasurer, other members are voluntarily contributing with different aspects of the project development. For more information on our team see page 4 of this document

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What is the business plan?

The company, as a non-profit Co-operative Ltd by guarantee, will issue licence agreements to members to run

businesses enabling them to utilise the land and infrastructure to support the development of agroecological land

based livelihoods. In return a monthly service charge is paid by each business. This charge will cover the costs of raising

the initial finance to purchase the land.

Members will have the opportunity to create their own rural enterprise or work with one of the ALI owned or licensed

businesses. Business activities are guided by a set of bye-laws that describe how these different types of businesses

will operate in relation to the co-operative.

In September of 2017 we will apply for planning permission for a single residential unit with 6 ancillary low-impact

dwellings. If successful will we then apply for a commercial mortgage to repay the initial loan finance for the purchase

of the land. If unsuccessful we will either seek a similar commercial mortgage arrangement without the co-housing

development or, the fall-back position will be to sell the land and repay the lenders. We expect the value of the land

to increase with the development of the property.

How will the Company make money?

The company makes money through the “service charge” it receives as part of the licence agreements issued to its

members for their respective business activities and the use of the land. The company will own several of these key

Summary of Terms and Conditions

Interest rates:

You can choose your interest rate, calculated yearly. For the year 2015 – 2016, the maximum you can choose will be 2%.

Payment of interest:

Interest will be paid annually by cheque or bank transfer.

Repayment:

Loan repayments will begin after 2 years at 5- 10 % p.a to be decided anually by the directors.

You can ask for your loan to be repaid at anytime but we request one year notice. We also reserve the right to repay the loan in full at any time.

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business within the project either directly or through a proscriptive licence agreement. The following are the proposed

businesses for the site:

ALI Natural Building Company Eco/natural building construction company

specialising in the production of mobile

cabins, will also be responsible for the on-

site timber processing.

Co-operative Company Ltd

Mycogeneration Producing gourmet and medicinal

mushroom and facilitating applied mycology

in agricultural/horticultural practices.

Co-operative Consortium Ltd

Black Mountain Food Hub An “online farmers market” connecting local

producers with local consumers providing

weekly deliveries of fresh produce and

organic wholefoods.

Co-operative Community

Interest Company

Fermentum Processed fermented food products for

retail locally and regionally.


Perennial Futures Offering Permaculture design services and

retail of perennial trees, shrubs and plants.


Regenerative Biochar Systems Producing charcoal for agricultural purposes

and providing training and implementation

in applied biochar “closed loop” systems.

Co-operative Company Ltd by

Guarantee

Tan-y-Garn Campsite An eco-heritage campsite drawing from the

geological, cultural and technical heritage of the

landscape to inspire visitors with possibility of

“one planet living”.

ALI business activity

For more details on our businesses and rural enterprise see appendix II of this document

Who’s Involved?

Sara Tommerup is a natural builder by trade, holds an MSc in Architecture, Advanced Energy and Sustainability studies

from CAT. She teaches workshops and works as a sole trader in the Forest of Dean. She is interested in woodland work,

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especially coppicing as a regenerative building material. She also has a cross cutting and felling chainsaw license. On

the side, Sara is also interested in the research side of things and hopes to be able to contribute with work on

restoration farming.

James Scrivens, a co-founder of the co-operative consortium for Yorkley Court Community Farm and co-founder of

the Dean Forest Food Hub, James is experienced in interpreting and applying legal and governance structures for

community enterprises. He has also been instrumental in the process of developing a Community Land Trust for the

Forest of Dean, Glos., and, over the last two years, has been building his applied mycology business, Mycogeneration.

Sonia Ashworth is a Renewable Energy Bsc graduate of the University of Exeter and has been since living and working

on a number of off grid community projects. She has much experience in the joy and difficulty of communal living and

has started to focus on sustainable building and infrastructure techniques that can be used to develop communities

in a way that reflects the confluence of regenerative methods in sustainable agriculture.

Adam Court trained in organic and biodynamic farming methods, has worked on various farms, and has spent many

years studying curative nutrition, sustainable living and permaculture. He co-designed and implemented a large forest

garden in Sussex and more recently has trained a horse, worked with a forester, installed wood-burning stoves, and

led workshops in food fermentation and agroecology. He is also starting up www.needfire.info, a media and

educational platform investigating regenerative agriculture and culture.

Rob Coventry completed a BSc in Sustainable Technology before going on to train in traditional round-pole timber

framing with the woodsman Ben Law. He has worked professionally as a bicycle mechanic, a renewable energy data

analyst, a carpenter, a coppice worker and a nature-based learning educator. He is currently completing the second

year of an international MSc program at Goettingen University in Germany, titled “Forestry in a Changing Climate”.

His main interests are Close-to-Nature community-oriented forest management and ecology.

Matt Cummings is a computer programmer with a background in developing web-based applications and ecommerce

systems for small and medium enterprises. He is interested in creating open-source educational resources and

exploring the use of crowdfunding through social networks for experiments in alternative systems of sustainable

agriculture. Matt is also an arboriculturalist and currently working on establishing a commercial nursery business for

propagating fruit and nut trees, as well as a variety of more exotic and unusual plants.

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Prospective Members – We currently have 5 more prospective active/investor members in the processes of applying

for membership.

How will business growth be managed?

We are applying for the “Just Growth” funding programme from Funding Enlightened Agriculture (FEA) later this year.

This fund combines a loan and a grant each of £20,000 as well as ongoing diagnostic consultation. In support of this

we will also be launching a crowdfunding campaign to raise a further, complementary £20,000 in October through the

Buzzbnk platform.

This funding will be shared between the rural enterprises to cover the start-up costs including, in part, the service

charge for the first year.

Most members will be living nearby and some of the workers in the ALI natural building Company may from time to

time reside on the land in temporary accommodation to carry out construction work.

We also hope to be eligible for grant funding from the Prince’s Countryside Fund and the Joseph Rowntree Trust for

specific capital costs involved in developing the on-site infrastructure in particular the elements that will provide

services and interest for the wider community.

What are the social and environmental returns?

There are many social and environmental benefits that will come from this proposed development such as:

• Provision of affordable housing for those seeking to pursue sustainable land based livelihoods

• Opportunities to access land and opportunities in agriculture and agroforestry.

• Retention, spread and development of resilient rural skills

• Increased biodiversity and enhanced biological interactions

• Carbon sequestration through agroecosystem management.

• Supply of local renewable sources of heat and power through innovative models of community owned

Energy Service Company (ESCo) thereby creating greater regional energy independence

• Increased supply of local and zero-carbon food

• Provision of educational opportunities in fields related to low impact development, outdoor education,

resilient rural skills and techniques and natural building.

• Improved water catchment

• Demonstration of examples of successful resilient livelihoods with low ecological footprint.

For more details on the economic, social and ecological benefits of the project see Appendix I of our Brochure.

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What’s happened so far?

The company was registered as a non-profit company ltd by guarantee on 24th February 2015. Over the previous 6

months we were developing our vision for the project and researching the viability of our proposed business model.

We have been working closely with Jackie Carpenter of South West England Sustainable Enterprises (SWESE), Trelay,

who has guided us through the process of designing our governance and legal structures.

We have created our company governance structure augmenting the articles of association carefully designed by

SWESE Trelay and developing aspects of our secondary rules such as our business bye-laws and membership

agreement.

On 26th February we paid a deposit of £30,000 on the land to secure the purchase of the estate before August 31st.

We are in the process of opening a bank account with Triodos bank and discussing the potential of financial support

from this institution.

We are now members of the Low Impact Living, the Land Workers Alliance and the Permaculture Association. We have

created a website and published brochures and leaflets that we have distributed in these networks and beyond.

How has money been spent?

So far we have spent £743 on consultation fees, publicity, admin and the cost of registering the company with

Companies House. We have also put down £30,000 deposit on the land with an agreement that the deposit will be

refunded if we cannot raise the required funds to fully purchase the estate before August 31st 2015.

How will money raised by interest bearing loans be spent?

The interesting bearing loans will go towards the purchase of the land.

How will we afford to cover the running costs during the start-up period?

The running costs over the first two years will be covered by the service charge/rent from the businesses.

The businesses will be supported in doing this through the “Just Growth” funding programme for the first

year by which time the businesses will be in a position to pay this charge from their own revenue.

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Budget

We hope to be successful in applying for the Just Growth programme from Funding Enlightened Agriculture (FEA) to

cover initial start-up costs. This will provide us with £40000 part grant and part loan.

Category Amount Description

Land Purchase (inc. tax) £290,000 We have negotiated an offer for the land of £285,000 this will include stamp

duty of £4250

Business Development £60,000 These costs cover infrastructure and equipment.

Admin £500 Setting up the company, and our related publicity and media presence.

Legal Fees £2000 This is an approximate figure for the cost of conveyancing and other

associated legal costs.

Consultancy £1000 This figure allows for further business and financial advice.

Planning Application £5000 This is an estimate for the initial application and includes, site surveys, maps,

soil and water tests and consultancy fees.

Cash-flow for Purchase and Development 2015 – 2016

Our cash-flow forecast is based on interest bearing loans of £150,000 charged at 6% p.a. This pessimistic forecast

accounts for the possibility of having to take out loan finance from a financial institution. Please contact us for more

detailed long term financial forecast.

Incoming

Quarter 1/15 - 3/15 4/15 - 6/15 7/15 - 9/15 10/15-12/15 1/16 - 3/16 4/16 - 6/16 7/16 - 9/16 10/16-12/16

Investment £30,000 £2700000

Funding £60000

Service charge £2400 £2400 £2400 £2400 £2400

Total £31,000 £0 £330000 £2400 £2400 £2400 £2400 £2400

Outgoing

Quarter 1/15 - 3/15 4/15 - 6/15 7/15 - 9/15 10/15-12/15 1/16 - 3/16 4/16 - 6/16 7/16 - 9/16 10/16-12/16

Land Purchase £30000 £255000

Stamp Duty £4250

Consultancy & Legal Fees

£1500

Loan Interest Payment

£2250 £2250 £2250 £2250 £2250

Start-up costs £500 £60,000

Running Costs £126 £126

Contingency £500 £500 £500 £500 £500 £500

Total £30626 £0 £261250 £2750 £62,876 £2700 £2700 £2700

Net £0 £68750 -£350 -£60476 -£300 -£300 -£300

Balance £374 £374 £69124 £68774 £8298 £7998 £7698 £7398

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Investor returns

We are offering up to 2% interest p.a. and repayment at 5 – 10% p.a after two years. However, if successful in our

planning application for the co-housing project we will consider mortgaging the property with a financial institution to

repay the initial lenders and fund further development. Finance from investors will be earning a good financial return

generated from our on-site businesses. As well as funding the future of farming and rural regeneration a financial

investment in the ALI would be earning more than, or just as much, as it would currently receive in a high street bank

or building society

In addition, an investment in this project also has a social and environmental return by supporting a place for

community to grow, the sharing of skills and innovation in a rural economy and the promotion of food sovereignty and

ecologically regenerative practices in rural development.

What could go wrong?

Of course, there is the risk that some of the businesses will fail. The success of these enterprises relies on our ability

to market the products and services we are offering. We will maximise our marketing potential through our use of e-

commerce platform designed in part by Matt Cummings.

If we are unable to attract sufficient members and the businesses fail, the fall-back position is to sell the property.

There are several other interested buyers at the moment, and the indications are that the land and property will retain

its worth and is likely to appreciate in value through the addition of the infrastructure we will build in the first two

years.

For more detailed information on how we plan manage risk see our Risk Statement in Appendix III.

Contact Us

Agroecology Land Initiative Ltd

Werndolau Farm,

Golden Grove,

SA32 8NE

[email protected]

www.agroecology.co.uk

07808168562

http://www.agroecology.co.uk/

http://www.agroecology.co.uk/

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Appendix I: Interest Bearing Loan Investor FAQs

How much can I invest?

You can invest any amount between £1000 and £50,000.

What rate will I get on my investment?

You can choose your interest rate, for the year 2015 – 2016, the maximum you can choose will be 2%. We feel this is

competitive as it is more than one would receive in most high street banks and building societies.

How will I be repaid?

After two years the loan repayments will begin at 5 – 10 % p.a to be decided annually by the directors. The lender may

request the repayment of the loan at any time but we ask that they provide us with notice of at least one year. The

company reserves the right to repay the loan at any time.

How will I receive interest on my investment?

You can either elect to have interest credited to your account or you can be sent a cheque. Interest is paid gross

without the deduction of tax and it is the investor's responsibility to declare any interest they receive and pay any tax

due.

How safe is my investment? What happens if things go wrong?

Loans will be secured against the value of the property Red Pig Farm. You will be listed as a lender on the title of the

estate. Valuations of the estate can be provided to the Lender. If the project fails the company will sell the land and

repay the Lenders. We do not expect the value of the property to fall, on contrary, we expect to increase the value

through the first two years development alone.

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Appendix II: Businesses and Rural Enterprise

Below are some of the proposed business activities and rural enterprises of the ALI that we plan to develop at Red Pig

Farm. The management and governance of businesses operating on the farm is described in our company business

and rural enterprise bye-laws which balance our desire to encourage entrepreneurship while also maintaining the

principles of co-operation, reciprocity and integration.

ALI Energy Services Company (ESco)

The ALI ESCo will provide services in consultation, feasibility studies and implementation of renewable energy

technologies from an agroecological perspective and pioneer an action research project into the viability of such an

approach to evaluating and managing renewable energy initiatives as a means of contributing to regenerative rural

development.

In establishing the most sustainable and regenerative woodland management strategies for Red Pig Farm we want to

explore innovations in biomass production and processing within the context of the principles our agroecological land

management practices.

To enhance the market conditions that would favour a localised biomass production model we will work with local

community groups to establish a model of Energy Services Company (ESCo), to supply and distribute woodfuel

products from Red Pig Farm and other local woodlands thereby maximising the benefits for the local economy.

ALI Natural Building Company

This enterprise will utilise timber and material from the land and locality to build the planned infrastructure at Red Pig

Farm and the proposed mobile cabins that will serve as the temporary low-impact accommodation for the residential

members.

This enterprise will be a licenced ALI business. Registered as a workers co-operative limited by guarantee members of

the ALI we have the opportunity to join this company and participate in building projects.

Led by Sara Tommerup, all construction design will follow specific principles of natural building with regard to materials

and technique. Specialising in straw bale buildings, cob, timber frame and rocket mass heaters the company will also

create revenue streams for the farm by taking on building projects both regionally and nationally and through the

construction and marketing of the mobile wood cabins.

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The ALI Natural Building Company will also build and maintain a wood processing and carpentry workshop at Red Pig

Farm with a small scale saw-mill powered by the on-site hydro-electric generator.

Local Food Distribution: Black Mountain Food Hub

Using newly developed Open Food Network software we will create a local organic food distribution enterprise linking

other local producers with consumers in local towns and villages. Based on the model pioneered by Stroudco and the

Dean Forest Food Hub we will provide a web platform for an online farmers market with local pick up points for

customers to collect their weekly order of local produce. We will charge a mark-up of just 15% keeping costs low

through our online ordering system.

Led by James Scrivens, co-founder of the Dean Forest Food Hub, a local “Black Mountain Food Hub” will be relatively

simple and inexpensive to get started. We intend to establish this as a model of social enterprise utilising a multi-

stakeholder co-operative governance structure balancing the interests of the workers, producers and consumers and

encouraging greater co-operation and participation in the local food system.

We are also collaborating with an emerging Llandeilo CSA project currently in negotiations with Roger Hallam of

Organics-to-go, a 4 acre market garden business with the view to buying out the business and transferring it into co-

operative ownership.

Regenerative Biochar Systems: “The Needfire of the Soil”

We believe that the application of charcoal in food growing and agroforestry systems has many outstanding short

term and long term benefits for agroecosystems management.

We will carry out research into the possible advantages of its application in water catchment systems and

agroecosystems contributing to the growing depth of research into this agroecological technique.

We will utilise ways to capture and use the waste gases and excess heat produced in the making of “biochar” to the

benefit of the other rural enterprises at Red Pig Farm, ensuring that the charcoal we produce is a by-product.

Furthermore, by working closely with the ALI ESCo we will research the feasibility of providing biochar producing

heating systems for local farms and housing.

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We will establish the organisation as a co-operative consortium thereby allowing for a number of charcoal producers

to work with us and share the administrative, marketing and distribution infrastructure. Using the Agrochar “brand”

we will then market 5Kg and 10kg bags for horticultural use at approximately £3-£5/kg and wholesale to farms

£1.10/kg with a minimum order of 500kg.

Mycogeneration

Utilising the existing facilities at Red Pig Farm, Mycogeneration will develop the capacity for the cultivation of gourmet

and medicinal mushrooms for local and national markets while researching areas of applied mycological such as

mycoforestry, mycoagriculture and landscape mycorestoration.

Initially the business activities will focus on the cultivation of oyster (Pleurotus ostreatus) and shitake(Lentinula edodes)

mushrooms supplied locally fresh and dried for regional and national markets. Alongside this we are excited about

marketing a brand of immune enhancing tea utilising a blend of turkey tail mushroom (Trametes Versicolor) birch

polypore (Piptoporus Betulinus) and selected herbs and spices.

These particular species grow well on birch wood and fortunately the natural regrowth in the woodland is

predominantly birch. Shitake also grows well on birch and we estimate that with a 500 log inoculation operation with

a four year rotation we could obtain a revenue of over £3000 per year.

We will also construct two grow rooms in the first two years of the project using a log and turf roof structure based

on a traditional design known as a Burdei, common in Eastern Europe. This is a low cost design amenable to the

insulative and humidifying requirements for mushroom formation. Once we test a method of producing mushrooms

using these grow rooms we plan to sell the production model to other farmers. Building the grow rooms and then

supplying the substrate or inoculant on a contractual basis.

Heating is a requirement during the process of mushroom production. We will therefore utilise the heat capturing

technologies developed through Agrochar thereby demonstrating a synergistic benefit between these two rural

enterprises.

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Fermentum

A fermented/probiotic food products start up, marketing sauerkraut, kimchi and other fermented foods, condiments

and beverages. Using the new to food processing barn we will prepare the fermented food products and store them

in specially design underground storage units that will maintain a constant temperature.

Once fermented we will decant the product into smaller containers for local, regional and national markets.

Working with Claymedia based in the Forest of Dean we will also sell custom made fermentation crocks in 5l, 10l and

20l sizes with a retail value of £25, £40 and £55 respectively.

We aim to use traditional methods of food fermentation and we will also run courses in traditional food preservation

techniques.

Perennial Futures: “Seeds and Rootstock for Perennial Cultures”

Through our research into the efficacy of applying perennial crops in agroecosystems we intend to actively promote

permaculture as an ethical design framework and an innovative approach to ecosystem management. We will focus

on the cultivation and distribution nitrogen fixing shrubs and trees and supply particular types of perennial vegetables.

We will then actively market these species to farmers and growers with advice and statistically backed research.

Perennial Futures will also be the enterprise through which we actively promote permaculture as an ethical design

framework and an innovative approach to ecosystem management, creating a showcase forest garden at Red Pig Farm

and run permaculture design courses.

Tan-y-Garn “Eco Heritage” Campsite

Red Pig Farm lies below the ancient Iron Age hill fort of Y Garn Goch. We hope to attract visitors to the area that have

an interest in the cultural heritage of the region within the context of the Fforest Fawr geopark that consists of the

western part of the Brecon Beacons national park. To this end, we plan to create an "Eco-heritage" campsite to that

will facilitate the objectives of the geopark to encourage sustainable tourism.

The campsite will also help to facilitate our educational aims to share skills and knowledge of low impact development

and agroecological land management practices by providing accommodation for participants during the length of a

given course.

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We will apply for the minimum 10 space campsite licence situated in a secluded part of the woodland. The visitors will

be serviced by a state of the art composting toilet and solar shower. They will have access to a designated fire pit and

barbeque area and be able to choose to pay for meals from the communal kitchen or order their own locally produced

food through the Black Mountain Food Hub.

Courses and Workshops

All of the above businesses will be developed as models of rural enterprise to increase the viability of low-impact living.

We will share these skills and provide training so others can adapt these practices to similar projects.

When we are fully established we will aim to hold up to 4 courses per year for 10 to 15 participants at a time. We are

currently planning a hydro electricity workshop running in the autumn later this year to coincide with the installation

of our hydro electric generator.

Furthermore, as part of a national fundraising campaign planned for the autumn of this year we are offering courses

throughout 2016 as rewards for donations or micro loans. These include a 1 day grow your own mushrooms

introductory course; a 2 day fermentation course; 3 day soil regeneration looking at root formation and soil structure

with examples of soil building techniques, the use of charcoal and hands on practical elements of compost tea

preparations; a 5 day timber framing course; and a 5 day Straw bale building course.

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Appendix III: Risk Statement

We have identified four principal areas of risk: planning, people, business, and finance.

Planning

Risk: Refusal of Residential Planning Application

The land is situated in Brecon Beacons National Park albeit only just within the western edge of the park boundary.

This potentially presents more challenges in relation to obtaining residential planning permission as the National Park

has its own planning authority with strict regulations about development in the park.

However, the BBNP planning development is supportive of rural enterprise and sustainable development and Red Pig

Farm has already been granted planning permission for several enterprising buildings, one of which won an award

from the planning authority.

Furthermore, the National Park is still bound by the TAN6 guideline for OPD reference to in section 7.8.5 of the BBNP

Planning Development Statement.

We also strongly feel that our proposal would benefit the Fforest Fawr geopark status of the western part of the

Brecon Beacons. Particular with regard to our design for an “Eco-Heritage” campsite.

If we are refused planning permission we have a right of appeal. We need to ensure there are no material grounds to

turn the application down. Often from the point of view of the planning authorities the weakest areas in low impact

rural enterprise are the economic arguments and financial projections. This is why we are giving ourselves 2 years to

build up the business model so not only will we have a working example of regenerative rural enterprise that could be

improved through residential planning permission but also have first hand evidence of the market potential of our

proposed businesses.

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People

Risk: Failure to attract enough skilled Residential Members.

We need a diverse skill set within the residential members to secure the co-sufficient objectives of the project. We

need to make the farm an attractive and inspiring place to live to encourage skilled and committed people to join us

in this endeavour.

A membership agreement process will ensure that members are starting on the same page respecting the foundational

values of agroecological principles and that people have the right skills and motivation to undertake the projects

necessary to sustain a livelihood from the land.

Risk: Discontent and conflict between Residential Members

The other side of finding the “right” people is the potential difficulties that can arise between people when they live

and work closely together.

We are aware of the importance of a commitment to a consensus decision making model and a strength of shared

intention to achieve specific outcome. We believe that by creating a process for the Residential Members to create a

community covenant over and above the membership agreement will engender a depth of understanding within the

community and a willingness to overcome difficulties.

Business

Risk: Failure to find sufficient access to markets.

We could make a diversity of products from the resources the land offers but this becomes a wasted effort if we can’t

find a sufficient market to sell them. Therefore, market research is a very important aspect in our business planning.

The two year start-up period is an important time for us to spend networking locally and regionally and adjusting our

business ideas. Using shared administration and marketing, as well as setting up a food distribution network will help

safe guard the market for our products as well as minimising costs.

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Financial

Risk: Failure to find enough capital investment from residential members.

If we don’t find the prospective residential members with capital to invest as equity loans then we will have to borrow

more money through private interest bearing loans or a business mortgage. This means a greater cost of borrowing

that will be passed on the Residential Members.

Risk: Failure to achieve our funding targets.

We intend to raise at least 20,000 through crowdfunding as a source of match funding for the forthcoming Funding

Enlightened Agriculture (FEA) Just Growth programme. If we fail to qualify for this funding then we will have to borrow

more money or scale down our capital cost requirements.

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Data protection and money laundering:

The data provided by you will be stored on a print and an electronic database.

This data will be used for Ecological Land

Co-operative purposes and will not be disclosed to any third party. It is a

condition of the offer to ensure

compliance with the Money Laundering Regulations 2003 that the Ecological Land

Co-operative Ltd may at its absolute discretion require verification of the

identity of any person wishing to invest.

Application for Interest Bearing Loan

I wish to make an interest bearing loan to the value of

(The minimum loan is £1000)

I wish to pay by:

Cheque Bank transfer

(Payment details will be provided after the loan agreement is signed by both parties)

Name and address (PLEASE USE CAPITAL LETTERS).

First Name

Surname

Address

Town/city

Postcode

Telephone

Email

Rate of interest payment: We intend to pay an annual interest rate of 2% on interest bearing loans. However, you

can choose your annual interest payments at a lower maximum if you wish.

I would prefer the interest payable on my loan to be capped at a maximum of the following rate:

2% 1% Waived for the benefit of the Co-operative

Interest payments: I would prefer my interest payments to be:

paid annually to a bank of my choice accrued annually with my investment

Agreement

I have read the Business Plan and Investment Offer document, including the statement of risk pertaining to this

investment.

Signed:

Applicant ______________________________________

Signature

………………………………………………………………………

Date _____ / ______ / ______

Please send your completed application form to:

Agroecology Land Initiative Ltd, Werndolau Farm, Golden Grove, SA32 8NE

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