Anne Miller By David McPhall. By David McPhail Vocabulary for.
David Miller
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Transcript of David Miller
Since 2007, the first U.S. private company to connect investors with
organic farmland and family farmers
David Miller, Chief Executive Officer
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Business Purpose
To operate a for-profit farmland company that positively impacts local, organic, and sustainable agriculture – focusing on the mid-size family farmer
Buy land. They ain't making any more of the stuff. – Will Rogers
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Commitment to the Land
• A company committed to hold the land for generations• Investment capital is open-ended and democratically
governed• Farmland is not treated as a trade • Farm tenants earn the option to purchase the farm• Voting rights vest after seven years• Transitioning the next generation of sustainable farmland
investors
Iroquois Valley Farms is the sustainablesolution to farmer land access
Our favorite holding period is forever. – Warren Buffett
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Commitment to the LandFarmer Commitment
One generation
Next Generation?
Board governed with open-ended ownershipIroquois Valley Commitment
Conventional Commitment10 years
Multi-Generational Tenures
Well Hopefully…
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Long Term Focus For the Next GenerationLong Term Source Long Term Use
• Broadly based (~80 investors)
• 40% of the capital from retirement accounts
• Last $5 million of farmland purchases have been for young farmers
Investor Base (% of invested capital)
Retirement40% General
58%
College2%
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High Growth Organic Food Market
Source: Organic Trade Association.
Value of Organic Food Market ($ in billions)
Constant Annual Growth Rate of 15.3%Organic as % of Total Market2000: 1.2%2011: 4.2%
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Organic Delivers Better Profits
Profit Per Acre• Productivity from organic
fields increases over time • Takes over 10 years to return
soil health to natural fertile levels
• Multiple research studies, including reports from independent third parties, academic institutions, and the USDA, have demonstrated that organic farming is more profitable than conventional
Source: Rodale Institute Farm System Trials.
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Organic Social & Environmental Impacts• In addition to economic benefits for the
farmers, organic farms provide numerous social and environmental benefits – Higher labor costs and no synthetic input expenses
assist local economies rather than corporate profits– No synthetic herbicides, pesticides, or fertilizers– More nutrients in organic foods for end consumer– Build rather than deplete soil organic matter– Use 45% less energy– Conventional systems produce 40% more
greenhouse gases
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Seventh Year of Operation
Note: 2013 organic acres includes acres scheduled for certification during the year.
• Impacting family farmers with 11 farms purchased• Initial investors have seen double digit returns
1 2 2 2 4 8 11Farms:
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Farmland Acres By State
TargetStates
366238763
Midwest / Great Lakes Regions
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2013 Private Placement
Funding new farmland acquisitions through a $6.9 million private placement
Minimum Investment$34,500
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Recent Purchase – Shiawassee Farm
New young farmers: Brent and Emily Shettler
238 acre farm in Michigan
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Vision Statement
To form the first publicly traded sustainable farmland company with generational impact for the family farmer
www.iroquoisvalleyfarms.com