Creative Lane Use

REGENERATIVE AGRICULTURE BUSINESS MODEL

This was the capstone project to a semester-long research and development project for an innovative business model. This page shares highlights of the 50+ page plan that maps out guiding principles, market research, a marketing plan, operations, management/org, financials, and next steps.

SKILLS SHOWCASED: Sustainable design principles, research, marketing, branding, financial planning, use of Business Model Canvas Tools.

Making the Business Case for Sustainability, MASD, Spring 2020

Big Audacious Goal

Connect more young farmers to affordable land to make regenerative farming more accessible to them

One of the greatest problems that farmers face is that land is too expensive for them to buy.  (Need to Grow 2020)  Farmland prices are at a record high across the country and land has become increasingly unaffordable for farmers. The land surrounding our nation’s cities, where market opportunities are greatest for beginning farmers, is often the most difficult to access. (National Young Farmers Coalition 2015)

Many young farmers have student loans to pay off and there are risks associated with farming that make buying land and investing hard to do as there is no job security.   


Industry Overview:  

Regenerative Agriculture is an industry that has been gaining momentum as scientists have pointed to the importance of bringing back soil health to increase the ability of soils to sequester carbon.  The practice is now being recognized and incorporated into the business plans of larger companies like Danone and General Mills.  This opens up the revenue stream for regenerative farmers.  However, the issues of the cost of new farmers entering into this industry can be cost-prohibitive as many are young farmers with school debts and no collateral for loans.  At the same time, there are older farmers wanting to retire but not give up their farms looking for people to take over their operations. 

Land under the management of land trusts, city, county and governments are in need of soil restoration and could be used for producing food for local communities.  Vacant lands and rooftops exist in cities that could also be put to use to create food in food deserts. 

Local initiatives have begun to try and create ways to connect these interests such as New England Farm Network, American Farmland TrustNational Young Farmers Coalition and Landscape architects are looking to incorporate regenerative techniques into their work as well. The Soil Health Institute provides funding for regenerative agriculture education.  There is also a growing recognition of the need to promote carbon dioxide removal through companies like Nori which could help to fund efforts to place more regenerative farmers on the land. The Savory Institute is working to convert large grasslands to regenerative farms.

Regernative Farming Niche

  • General Mills

    Regenerative agriculture is becoming mainstream with the likes of General Mills jumping on board as they have pledged to advance regenerative agriculture practices on 1 million acres of farmland by 2030.

  • Danone

    Danone has stated that they “are on a journey to make a meaningful difference through Regenerative Agriculture, which we define as agriculture that protects and intentionally enhances natural resources and farming communities. We believe that to generate positive impact at scale, all types of agriculture – organic and conventional – can be part of the solution.” (Danone 2019)

  • Whole Foods

    Whole Foods chose regenerative agriculture as a top 10 food trend for 2020.  (Whole Foods 2019)  Companies including the Rodale Institute and Regenerative Organic have developed a certification for regenerative farms and products. 

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Market Segment Overview

This is a very underserved market.  The National Young Farmers Coalition cites land access and capital as top barriers to new farmers. (Rodale Institute 2020) 


There are several organizations working to link farmers to land but they seem to work mainly in partnership with more traditional real estate transactions or are simply listing services.  Some websites such as New Entry Sustainable Farming Project have specific information about working with land trusts but it is not a consolidated hub for a variety of land options.  Other sites seem to be out of date or not heavily used. Our services target new inspiring farmers, retiring farmers, existing farms that want to convert to regenerative farming, land trusts, governments, counties, and cities. 


The urban farming movement has grown over 30% in the past 30 years, and developers are noticing.

To meet consumer demand, real estate developers are starting to incorporate urban farms into their commercial real estate development projects, adding rooftop farms or community gardens at the tops of apartment buildings, office spaces, or restaurants. Residents have the option to maintain their plots or a designated urban farmer maintains the garden for the community to ensure viability and productivity.  Vacant, blighted commercial buildings are being repurposed for the use of indoor farming.

Several Real estate investment trusts (REITs) and crowdfunding platforms have surfaced in recent years with a sole focus on investing in or financing farms in urban settings. (Fool 2020)

A new report from the Croatan Institute, Delta Institute, and OARS, entitled “Soil Wealth: Investing in Regenerative Agriculture across Asset Classes,” has identified regenerative agriculture as a major investment opportunity throughout the United States.

The Business Plan

 

Goals and Principles

We research opportunities to connect young regenerative, permaculture, biodynamic farmers to land that is affordable. We provide guidance for them on contracts to use that land.  We work to support a network of small farmers that can sell locally.

Our service is a website that has up-to-date information on available farmland through public land options, land trusts, lease to own options, vacant land as well as land contract information.  Consultants help young farmers explore options and set up contracts with people with land listed that they want to have regeneratively farmed. 


Product/Services

Our service is a website that has up-to-date information on available farmland through public land options, land trusts, lease to own options, vacant land as well as land contract information.  Consultants help young farmers explore options and set up contracts with people with land listed that they want to have regeneratively farmed. We focus on finding land opportunities that are often overlooked

PRODUCT DEVELOPMENT

Research:  Constantly building a database of opportunities and understanding various contract options – this is key to the success of our company to have as many options as possible for farmers and work to frame those options in a way that is approachable to the farmer.

Website Design: Updating resource information and blog – we have a design that is easy to navigate with options to ask questions and contribute information.

Educational Opportunities: Producing workshops


Our Niche

Our target customers are new farmers looking for somewhere to farm and people or organizations that have land looking for farmers to help them continue to farm or start to farm. 

Location: Anywhere with access to internet

Income: Low to Middle

Occupation: Regenerative Farmers

  • 2,384 new farmers between the ages of 25 and 34 took up the profession between 2007 and 2012, it represents a 2.2 percent increase – only the second time in the last 100 years that the number of farmers that age has grown, according to the Washington Post. Meanwhile, the number of farmers in nearly every other age group has declined dramatically.

  • Small farmers are responsible for 58 percent of the nation’s direct-to-consumer sales – in other words, small farmers tend to sell their wares locally, without middlemen. Small farms also account for 17 percent of organic sales. For perspective, only about 1 percent of American farmland is organic.

  • 85 percent of farmers market vendors farm within 50 miles of the market where they sell their goods. For comparison, farmers that supply supermarkets reside an average of 1500 miles away from the stores that stocks their products. On average, American farmers receive only 17.4 cents of every dollar that store shoppers spend on food; but at farmers markets, growers reap more than 90 percent of food dollars.

  • 67 percent of direct-to-consumer sales are from farms located in metropolitan counties. 

  • 38 percent of those direct-to-consumer farmers are women. This is more than double the percentage of women among the general farming population. Organic farmers are also more likely to be female than conventional producers are.


Strategy

Create a product that opens up new avenues for farming for young farmers through a simple digital platform as well as with one on one consulting advice. We aim to connect fragmented resources to land opportunities into one concise database and deliver advice on how to best use this database as well as secure funding to maximize the potential impact of building the smaller farm regenerative farming movement.

Our initial connection to customers would be through our partnerships with universities, governments organizations, land trusts.  We would offer both the ability to list land and for farmers and landowners/managers to profile themselves on our site for free.  We profile farmers in our blog as they develop their farms.  We also help link those farmers to local markets that can sell their products and partner with us to promote more regenerative farming in the area.

We are an open-minded approachable team of people committed to looking for new solutions to bringing promoting healthy soils.  The images we choose are of teamwork, health, growth and community. 


Management/Org

This will be a remote team. We will adhere to the LIVING PRINCIPLES: Four streams of integrated sustainability: Environment, People, Economy and Culture.

Sources:

Need to Grow. https://www.facebook.com/TheNeedToGrow.

National Young Farmers Coalition. https://www.youngfarmers.org/wp-content/uploads/2015/01/NYFC-Finding-Affordable-Farmland.pdf.

“9 Mind-Blowing Facts about the US Farming Industry | Markets Insider.” Accessed May 12, 2020. https://markets.businessinsider.com/news/stocks/farming-industry-facts-us-2019-5-1028242678#41-of-the-contiguous-us-is-used-to-feed-livestock-that-s-800-million-acres-roughly-the-size-of-india8.

“Regenerative Agriculture 2020.” Accessed May 12, 2020. https://www.generalmills.com/en/Responsibility/Sustainability/Regenerative-agriculture.

“Regenerative Agriculture - Danone.” Accessed May 12, 2020. https://www.danone.com/impact/planet/regenerative-agriculture.html.

“Whole Foods Market Predicts Top 10 Food Trends for 2020 - Whole Foods Market Newsroom.” Accessed May 12, 2020. https://media.wholefoodsmarket.com/news/whole-foods-market-predicts-top-10-food-trends-for-2020.

Rodale Institute. “Organic Farm Funding.” Accessed May 12, 2020. https://rodaleinstitute.org/education/organic-farm-funding/.

“Urban Farming: A Budding Investment Opportunity in Real Estate | Millionacres.” Accessed May 12, 2020. https://www.fool.com/millionacres/real-estate-investing/articles/urban-farming-budding-investment-opportunity-real-estate/.

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