tbli conferene @booth/kellogg 2015: "impact measurement based on company vision" by steven...
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TBLI Conference @Booth/Kellogg 2015
Director of Impact [email protected]
John Steven Bianucci
Measures | Impact
Commmentary: Environmental – Suppor&ng Healthy Sustaining Biodiversity that includes humans! Social – Shared, Community Wealth building Financial – Posi&ve Returns Perpetuate More Posi&ve Investment
Commmentary:
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A FOOD & FARMLAND COMPANY
Iroquois Valley Farms is a Food and Farmland Company
that connects local, organic, sustainable farmers to farmland
Iroquois Valley Farms is not a fund, limited partnership, family office, angel investor network, or farmland broker
Commmentary: Commmentary:
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BUSINESS MODEL It Starts with the Farmer
• Farming partner finds land opportunity that fits business needs
• Iroquois Valley Farms buys the farmland and leases it to the farmer
• Unique long-term leases create generational tenures for sustainable land stewardship
• Decentralized farming operations – farm operations are independent / farmer managed
Commmentary: And ends with the Farmer, in that, farmers independently operate their businesses
Commmentary:
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COMMITMENT TO THE LAND The Farmer Perspective
Individual Farmer Commitment – One generation
Pass to Next Generation?
Iroquois Valley Commitment – Indefinite ownership
Traditional Wall Street Commitment – 10 years
Support Multi-Generational Tenure
Well Hopefully…
Commmentary: Commmentary:
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ASSET ANALYSIS Asset Value by Farmer (as of 9/14) Acres by State
856
238
1,097
134
Target States
180
110
Current States
175
See notes page for more details
■ H. Wilken - 15% ■ Richards - 3%■ Friedman - 14% ■ Harris - 3%■ Ambriole - 14% ■ R. Wilken - 8%■ Moore - 8% ■ Lewis - 1%■ Ford - 11% ■ Throneburg - 15%■ Shettler - 6% ■ McMunigal - 3%
Note: May sum over 100% due to rounding.
Commmentary: Suppor?ng Local and Regional Food Systems DIVRRSIFICWTION, AN BQSKET
Commmentary:
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CAPITALIZATION - EQUITY Account Type Member Growth
Member State Demographics Subscription Source
■ Individual
■ IRA
■ Rev. Trust
■ Fund / Family Office / Foundation
DC ■ Internal
■ Financial Advisors
See notes page for more details
New Header & Banners? IMPACTING: 1 -‐SAVINGS BEHAVIOR 2 -‐ NEW CLASS OF INVESTOR OPTIONS 3 -‐ REGIONAL ? 4-‐ FINANCIAL ADVISORIES
Commmentary:
Commmentary:
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IROQUOIS VALLEY PROGRESSION
Phase 1 2007 - 2010
Transition the Land 10
Investors
Phase 2 2011 - 2013
Transition the Capital 100
Investors
Phase 3 2014+
Organic Growth and Regeneration (of Capital)
1000 Investors
Commmentary:
Commmentary: Major advance in offerings to further support a sustainable ecosphere, in par?cular, the fer?lity of the soil
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PROVIDING LAND ACCESS Over 1,700 acres acquired for young farmers since 2012
Acres to Young Farmers
Commmentary: Commmentary:
Genera?onal Impact! Here we are, today, consciously crea?ng with you the kind of food system we want for our children, grandchildren, …down to the seventh genera?on.
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INDIANA YOUNG FARMERS
Fords
Ramers
Ambrioles
Commmentary: Commmentary:
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APPALACHIAN - CONVERSION & RESTORATION
Healing Ground Farm Rockcastle Cty, KY
McMunigal Family Monroe Cty, WV
Commmentary Tobacco and cola country convr?ng to sustainable ag :
Commmentary:
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GROWING ORGANICALLY Eight year track record of successfully acquiring farmland Owned Acres
Commmentary: Commmentary:
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RECOGNITION OF OUR IMPACTS
ImpactAsset 50 Manager 2012, 2013, 2014
Certified B Corporation Since 2012
Selected Best for Community 2014
Over 1,700 acres Over $10 million in farmland
Add IA50 2014 Badge? (Perhaps move B Corp sec&on to boBom. YFLA in middle and the open space at right could be the 2014 IA50 Badge?)
Commmentary:
Commmentary:
A Growth Stock for the Next Generation
MEASURING IMPACT BASED ON COMPANY VISION
If a Company can accurately articulate its Vision, it may internally generate an impact measurement sensitive to that Company Vision, and so, useful
to managers, employees, investors and the public.
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VISION STATEMENT Iroquois Valley Farms
• Enable the next genera-on of young farmers to posi-vely impact the world.
• Farm with healthy, humane and organic prac-ces • Keep the farmers on the land • Grow a grass roots capital base • Transi-on tradi-onal investment capital • Maintain a democra-cally governed enterprise • Protect farmland.
Commmentary: Flexible, Responsive Localized: Decantralized Support of Emerging Local and Regional Food Systems. Farmers independently operate their own businesses
Commmentary:
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VISION STATEMENT Iroquois Valley Farms
Enable the next genera-on of young farmers to posi-vely impact the world.
Commmentary: Flexible, Responsive Localized: Decantralized Support of Emerging Local and Regional Food Systems. Farmers independently operate their own businesses
Commmentary:
2 4
2 3
1 1 1 1 2 4
8
13
2007 2008 2009 2010 2011 2012 2013 2014 Existing Farmers New Young Farmers (Less than 35) New Farmers Over 35
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VISION STATEMENT Iroquois Valley Farms
Farm with healthy, humane and organic prac-ces without GMOs, toxic pes?cides, herbicides, fungicides, synthe?c fer?lizers or other harmful chemicals.
Commmentary: Flexible, Responsive Localized: Decantralized Support of Emerging Local and Regional Food Systems. Farmers independently operate their own businesses
Commmentary:
302 381 381 541
1,125 142 302 302
225 506 1,249
1,665
606 887
1,790
2,790
2007 2008 2009 2010 2011 2012 2013 2014 Organic Transitional
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VISION STATEMENT Iroquois Valley Farms
Keep the farmers on the land by indefinitely renewing their leases and preferen?ally selling to the farm tenant. Members trade “stock”, not land.
Commmentary: Flexible, Responsive Localized: Decantralized Support of Emerging Local and Regional Food Systems. Farmers independently operate their own businesses
Commmentary:
100% 100% 100% 100% 100% 100% 100%
0%
25%
50%
75%
100%
2008 2009 2010 2011 2012 2013 2014
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VISION STATEMENT Iroquois Valley Farms
Grow a grass roots capital base, reaching thousands of like-‐minded investors concerned about the health of people, the planet and financial stability.
Commmentary: Flexible, Responsive Localized: Decantralized Support of Emerging Local and Regional Food Systems. Farmers independently operate their own businesses
Commmentary:
10 10 10 10
31
71
111
166
2007 2008 2009 2010 2011 2012 2013 2014
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VISION STATEMENT Iroquois Valley Farms
Transi-on tradi-onal investment capital from conven?onal trading and extrac?ve prac?ces to renewable and regenera?ve uses.
Commmentary: Flexible, Responsive Localized: Decantralized Support of Emerging Local and Regional Food Systems. Farmers independently operate their own businesses
Commmentary:
$0.7 $0.8 $0.9 $1.2 $2.7
$8.9
$13.1
$20.3
2007 2008 2009 2010 2011 2012 2013 2014
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VISION STATEMENT: STRONG HISTORICAL RETURNS
Price per Membership Interest (“Share”)
Maintain a democra-cally governed enterprise enabling both members and farmers to enjoy a stable and profitable return on their farming investment.
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VISION STATEMENT Iroquois Valley Farms
Protect farmland.
Commmentary: Flexible, Responsive Localized: Decantralized Support of Emerging Local and Regional Food Systems. Farmers independently operate their own businesses
Commmentary:
1 2 2 2 4
7
15
21
2007 2008 2009 2010 2011 2012 2013 2014
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VISION STATEMENT Iroquois Valley Farms
• Enable the next genera-on of young farmers to posi-vely impact the world. • Farm with healthy, humane and organic prac-ces without GMOs, toxic
pes?cides, herbicides, fungicides, synthe?c fer?lizers or other harmful chemicals.
• Keep the farmers on the land by indefinitely renewing their leases and preferen?ally selling to the farm tenant. Members trade “stock”, not land.
• Grow a grass roots capital base, reaching thousands of like-‐minded investors concerned about the health of people, the planet and financial stability.
• Transi-on tradi-onal investment capital from conven?onal trading and extrac?ve prac?ces to renewable and regenera?ve uses.
• Maintain a democra-cally governed enterprise enabling both members and farmers to enjoy a stable and profitable return on their farming investment.
• Protect farmland.
Commmentary: Flexible, Responsive Localized: Decantralized Support of Emerging Local and Regional Food Systems. Farmers independently operate their own businesses
Commmentary:
24 www.iroquoisvalleyfarms.com
OPERATING COMPANY PHILOSOPHY Iroquois Valley Traditional Fund
• Starts with the farmer • Fair market and economic
purchases • Existing diversified portfolio • Low minimum (individuals) • Assets naturally increase
productivity over time • No fees; management
incentive options • Diverse, patient investors
• Starts with the money • May make speculative risky
acquisitions • Investing in a blind pool • High minimum (institutions) • Short-term view leads to
conventional management • Management, purchase &
exit fees; carried interest • Trading capital investors
Commmentary: Flexible, Responsive Localized: Decantralized Support of Emerging Local and Regional Food Systems. Farmers independently operate their own businesses
Commmentary:
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INCREASING RENTAL PAYMENTS Variable payments will drive revenue growth as soil health is restored over time Cash Yields by Farm Acquisition Year
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VISION STATEMENT Iroquois Valley Farms
Maintain a democra-cally governed enterprise enabling both members and farmers to enjoy a stable and profitable return on their farming investment.
Commmentary: Flexible, Responsive Localized: Decantralized Support of Emerging Local and Regional Food Systems. Farmers independently operate their own businesses
Commmentary:
2 2
3
2012 2013 2014
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HIGH GROWTH ORGANIC MARKET
Source: Organic Trade Association.
Value of Organic Food Market ($ in billions)
Constant Annual Growth Rate of 13.7%
Organic as % of Total Market 2000: 1.2% 2013: 4.3%
The organic food market has grown nearly 14% per year since 2000, significantly faster than the total food market which grew approximately 3% per year over the same period
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CONSUMERS WANT LOCAL FOODS
Source: USDA-AMS –Marketing Services Division
Number of Farmers Markets in the U.S.
Since 2000 the number of farmers markets nationally has tripled, showing the increase in consumer preference for locally grown food
Constant Annual Growth Rate of 8.4%