March 5, 2018, Trust in Food by Nate Birt The investment community can support rural U.S. communities desperately in need of attention by providing farmers with comfortable salaries and sharing business risk, says Shonda Warner, founder and managing partner of Chess Ag Full Harvest Partners. Chess Ag implements environmental, social and governance (ESG) practices into the farms it operates by using conservation practices where they make sense, precisely applying fertilizer and water and adopting technology that adds efficiency. In the following Q-and-A article, Warner shares her thoughts the role of investors in the rapidly changing food system. Ag capital is attempting to provide access to better food. What makes it better? What are the criteria used to determine food quality currently on the market? Institutional investors and investment funds are providing an additional source of capital into our farm economy. While small compared to family ownership–varying between 5% and 10% of cropland–institutional investors provide an additional source of much-needed capital, contributing to healthier rural communities and food diversity and quality. Do ag investment firms look for anything particular when looking for investing prospects? Internal or external reporting? If so what frameworks are preferred? Ag investment firms consider a wide range of factors when assessing the quality of a farm or agribusiness investment. We look at the potential for returns, consider the risk and how to manage those risks using various mitigation tools as well as the potential length of the investment. We are continually monitoring financial and agricultural market trends and are aware that each farm and situation is unique. Are you implementing or requiring conservation practices on the farms you manage? And if so what...
Recent Comments