TBLI CONFERENCE @BOOTH/KELLOGG 2015: "Impact measurement based on company vision" - by Steven John...

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TBLI Conference @Booth/Kellogg 2015

Director of Impact [email protected]

John Steven Bianucci

Measures | Impact

Commmentary: Environmental – Suppor&ng Healthy Sustaining Biodiversity that includes humans! Social – Shared, Community Wealth building Financial – Posi&ve Returns Perpetuate More Posi&ve Investment

Commmentary:

2 www.iroquoisvalleyfarms.com

A FOOD & FARMLAND COMPANY

Iroquois Valley Farms is a Food and Farmland Company

that connects local, organic, sustainable farmers to farmland

Iroquois Valley Farms is not a fund, limited partnership, family office, angel investor network, or farmland broker

Commmentary: Commmentary:


BUSINESS MODEL It Starts with the Farmer

•  Farming partner finds land opportunity that fits business needs

•  Iroquois Valley Farms buys the farmland and leases it to the farmer

•  Unique long-term leases create generational tenures for sustainable land stewardship

•  Decentralized farming operations – farm operations are independent / farmer managed

Commmentary: And ends with the Farmer, in that, farmers independently operate their businesses

Commmentary:


COMMITMENT TO THE LAND The Farmer Perspective

Individual Farmer Commitment – One generation

Pass to Next Generation?

Iroquois Valley Commitment – Indefinite ownership

Traditional Wall Street Commitment – 10 years

Support Multi-Generational Tenure

Well Hopefully…



ASSET ANALYSIS Asset Value by Farmer (as of 9/14) Acres by State

856

238

1,097

134

Target States

180

110

Current States

175

See notes page for more details

■ H. Wilken - 15% ■ Richards - 3%■ Friedman - 14% ■ Harris - 3%■ Ambriole - 14% ■ R. Wilken - 8%■ Moore - 8% ■ Lewis - 1%■ Ford - 11% ■ Throneburg - 15%■ Shettler - 6% ■ McMunigal - 3%

Note: May sum over 100% due to rounding.

Commmentary: Suppor?ng Local and Regional Food Systems DIVRRSIFICWTION, AN BQSKET

Commmentary:


CAPITALIZATION - EQUITY Account Type Member Growth

Member State Demographics Subscription Source

■ Individual

■ IRA

■ Rev. Trust

■ Fund / Family Office / Foundation

DC ■ Internal

■ Financial Advisors

See notes page for more details

New Header & Banners? IMPACTING: 1 -‐SAVINGS BEHAVIOR 2 -‐ NEW CLASS OF INVESTOR OPTIONS 3 -‐ REGIONAL ? 4-‐ FINANCIAL ADVISORIES

Commmentary:

Commmentary:


IROQUOIS VALLEY PROGRESSION

Phase 1 2007 - 2010

Transition the Land 10

Investors

Phase 2 2011 - 2013

Transition the Capital 100

Investors

Phase 3 2014+

Organic Growth and Regeneration (of Capital)

1000 Investors

Commmentary:

Commmentary: Major advance in offerings to further support a sustainable ecosphere, in par?cular, the fer?lity of the soil


PROVIDING LAND ACCESS Over 1,700 acres acquired for young farmers since 2012

Acres to Young Farmers


Genera?onal Impact! Here we are, today, consciously crea?ng with you the kind of food system we want for our children, grandchildren, …down to the seventh genera?on.


INDIANA YOUNG FARMERS

Fords

Ramers

Ambrioles



APPALACHIAN - CONVERSION & RESTORATION

Healing Ground Farm Rockcastle Cty, KY

McMunigal Family Monroe Cty, WV

Commmentary Tobacco and cola country convr?ng to sustainable ag :

Commmentary:


GROWING ORGANICALLY Eight year track record of successfully acquiring farmland Owned Acres



RECOGNITION OF OUR IMPACTS

ImpactAsset 50 Manager 2012, 2013, 2014

Certified B Corporation Since 2012

Selected Best for Community 2014

Over 1,700 acres Over $10 million in farmland

Add IA50 2014 Badge? (Perhaps move B Corp sec&on to boBom. YFLA in middle and the open space at right could be the 2014 IA50 Badge?)

Commmentary:

Commmentary:

A Growth Stock for the Next Generation

MEASURING IMPACT BASED ON COMPANY VISION

If a Company can accurately articulate its Vision, it may internally generate an impact measurement sensitive to that Company Vision, and so, useful

to managers, employees, investors and the public.


VISION STATEMENT Iroquois Valley Farms

•  Enable the next genera-on of young farmers to posi-vely impact the world.

•  Farm with healthy, humane and organic prac-ces •  Keep the farmers on the land •  Grow a grass roots capital base •  Transi-on tradi-onal investment capital •  Maintain a democra-cally governed enterprise •  Protect farmland.

Commmentary: Flexible, Responsive Localized: Decantralized Support of Emerging Local and Regional Food Systems. Farmers independently operate their own businesses

Commmentary:



Enable the next genera-on of young farmers to posi-vely impact the world.


Commmentary:

2 4

2 3

1 1 1 1 2 4

8

13

2007 2008 2009 2010 2011 2012 2013 2014 Existing Farmers New Young Farmers (Less than 35) New Farmers Over 35



Farm with healthy, humane and organic prac-ces without GMOs, toxic pes?cides, herbicides, fungicides, synthe?c fer?lizers or other harmful chemicals.


Commmentary:

302 381 381 541

1,125 142 302 302

225 506 1,249

1,665

606 887

1,790

2,790

2007 2008 2009 2010 2011 2012 2013 2014 Organic Transitional



Keep the farmers on the land by indefinitely renewing their leases and preferen?ally selling to the farm tenant. Members trade “stock”, not land.


Commmentary:

100% 100% 100% 100% 100% 100% 100%

0%

25%

50%

75%

100%

2008 2009 2010 2011 2012 2013 2014



Grow a grass roots capital base, reaching thousands of like-‐minded investors concerned about the health of people, the planet and financial stability.


Commmentary:

10 10 10 10

31

71

111

166

2007 2008 2009 2010 2011 2012 2013 2014



Transi-on tradi-onal investment capital from conven?onal trading and extrac?ve prac?ces to renewable and regenera?ve uses.


Commmentary:

$0.7 $0.8 $0.9 $1.2 $2.7

$8.9

$13.1

$20.3

2007 2008 2009 2010 2011 2012 2013 2014


VISION STATEMENT: STRONG HISTORICAL RETURNS

Price per Membership Interest (“Share”)

Maintain a democra-cally governed enterprise enabling both members and farmers to enjoy a stable and profitable return on their farming investment.



Protect farmland.


Commmentary:

1 2 2 2 4

7

15

21

2007 2008 2009 2010 2011 2012 2013 2014

A Growth Stock for the Next Generation

APPENDIX



•  Enable the next genera-on of young farmers to posi-vely impact the world. •  Farm with healthy, humane and organic prac-ces without GMOs, toxic

pes?cides, herbicides, fungicides, synthe?c fer?lizers or other harmful chemicals.

•  Keep the farmers on the land by indefinitely renewing their leases and preferen?ally selling to the farm tenant. Members trade “stock”, not land.

•  Grow a grass roots capital base, reaching thousands of like-‐minded investors concerned about the health of people, the planet and financial stability.

•  Transi-on tradi-onal investment capital from conven?onal trading and extrac?ve prac?ces to renewable and regenera?ve uses.

•  Maintain a democra-cally governed enterprise enabling both members and farmers to enjoy a stable and profitable return on their farming investment.

•  Protect farmland.


Commmentary:


OPERATING COMPANY PHILOSOPHY Iroquois Valley Traditional Fund

•  Starts with the farmer •  Fair market and economic

purchases •  Existing diversified portfolio •  Low minimum (individuals) •  Assets naturally increase

productivity over time •  No fees; management

incentive options •  Diverse, patient investors

•  Starts with the money •  May make speculative risky

acquisitions •  Investing in a blind pool •  High minimum (institutions) •  Short-term view leads to

conventional management •  Management, purchase &

exit fees; carried interest •  Trading capital investors


Commmentary:


INCREASING RENTAL PAYMENTS Variable payments will drive revenue growth as soil health is restored over time Cash Yields by Farm Acquisition Year



Maintain a democra-cally governed enterprise enabling both members and farmers to enjoy a stable and profitable return on their farming investment.


Commmentary:

2 2

3

2012 2013 2014


HIGH GROWTH ORGANIC MARKET

Source: Organic Trade Association.

Value of Organic Food Market ($ in billions)

Constant Annual Growth Rate of 13.7%

Organic as % of Total Market 2000: 1.2% 2013: 4.3%

The organic food market has grown nearly 14% per year since 2000, significantly faster than the total food market which grew approximately 3% per year over the same period


CONSUMERS WANT LOCAL FOODS

Source: USDA-AMS –Marketing Services Division

Number of Farmers Markets in the U.S.

Since 2000 the number of farmers markets nationally has tripled, showing the increase in consumer preference for locally grown food

Constant Annual Growth Rate of 8.4%

TBLI CONFERENCE @BOOTH/KELLOGG 2015: "Impact measurement based on company vision" - by Steven John...

Economy & Finance

Transcript of TBLI CONFERENCE @BOOTH/KELLOGG 2015: "Impact measurement based on company vision" - by Steven John...