Maria, a worker at Stehly Farms Organics in Valley Center, California, has been picking broccoli amidst the high demand for fruits and vegetables due to the Coronavirus outbreak in the United States. Maria, originally from Oaxaca, Mexico, has been an integral part of the farm for seven years.
A new fund, Perennial Fund II, has been launched by Mad Capital, a finance firm based in Colorado, with the aim of assisting U.S. farmers in transitioning to regenerative organic agriculture methods. This fund will provide tailored loans to regenerative organic farmers to cover various capital needs, enabling them to transition to organic practices, invest in soil health, explore new markets, and diversify their operations.
Regenerative organic agriculture focuses on regenerating soil health and the entire farm ecosystem. The fund is targeting $50 million and has already received commitments from investors such as Builders Vision, the Rockefeller Foundation, and the Schmidt Family Foundation.
Mad Capital's CEO highlighted that regenerative organic farming aligns with working in harmony with nature, emphasizing carbon sequestration, wildlife restoration, and biodiversity. Despite the potential benefits, only 1% of U.S. farmland is certified organic, significantly lower than the EU's nearly 10%.
The fund aims to address key barriers faced by farmers in transitioning to regenerative organic methods, including the lack of agronomic knowledge, access to premium markets, and most importantly, access to capital. By providing long-term financing, the fund seeks to support regenerative organic farmers and demonstrate the economic viability of this emerging asset class.
Mad Capital has already deployed over $25 million to 30 farmers, facilitating the transition of 10,500 acres to organic farming. The Perennial Fund II is a step towards financing 5 million acres of regenerative organic farmland by 2032.
The Rockefeller Foundation recognizes the importance of appropriate finance in driving the adoption of regenerative practices. They commend Mad Capital for bridging the gap in the market with flexible loans that accelerate farmers' transition towards regenerative agriculture.
With a focus on creating sustainable impact and connecting with farmers, Mad Capital's fund strategy aims to catalyze change and promote the shift towards regenerative practices in agriculture.
