Farmland LP launches $250M fund focused on organic and regenerative agriculture 

San Francisco-based Farmland LP has launched Vital Farmland III (Fund III), its third and largest fund to date.

With a fundraising target of $250 million, Fund III will extend Farmland LP’s mission of transforming conventional farms into dynamic, sustainable, and organic operations, catering to the surging consumer demand for food products derived from organic and regeneratively farmed sources, according to a news release. 

Farmland LP currently manages over 16,000 acres with approximately $250 million in assets under management, the release said.

Fund III will allow investors to align compelling financial returns with measurable, positive environmental impact, the release said. The firm's previous funds have delivered strong performances; notably, Vital Farmland LP (Fund I) has since inception generated a net average after-tax return to original investors of 113%, according to the release. 

"Farmland LP's strategy is grounded in simplicity and effectiveness. We acquire conventional, chemical-dependent farms and reengineer them as models of organic and regenerative agriculture, thereby boosting cash flows and land values," Craig Wichner, CEO of Farmland LP, said in the release. "With our proven 14-year track record, we have demonstrated that converting low-margin, high-volume farmland into higher-margin organic alternatives generates substantial financial benefits while simultaneously promoting environmental stewardship.”

"Driven by robust investor interest in high-performing, sustainability-focused farmland investments, Farmland LP continues to experience accelerated growth," Tom Sullivan, managing director of capital markets and investor relations for Farmland LP, said in the release. “Our new fund provides a unique opportunity for institutional and accredited individual investors to tap into this high-potential asset class, fostering regenerative farming practices that benefit our planet."

With greenwashing a growing concern in the farmland investment sector, Wichner said that investors are increasingly seeking verifiable claims of sustainability.

“Our commitment to certified organic standards and regenerative farming practices focused on soil health assures our investors that their capital is truly advancing sustainable agriculture,” Wichner said.