Growing demand for organic produce is fueling the growth of a San Francisco investment fund.
Farmland LP, the largest organic farmland-focused fund in the U.S., announced Thursday that 2022 will be a record year in revenue, capital under management and the value of its farmland portfolio.
“The past year was a time of significant accomplishments,” CEO Craig Wichner said in a statement. “We over-achieved on raising new capital, expanded production — notably in organic blueberries and wine grapes.”
Farmland was founded in 2009 and currently owns or manages over 15,000 acres of farmland in Washington, Oregon and California. It has about $200 million in assets.
The firm’s approach — converting conventional farmland to organic, regenerative processes while focusing on high value, permanent crops — has proved popular with investors.
Farmland reopened its Fund I earlier this year, raising $25 million to expand its organic blueberry production in California from 150 acres to 600. The firm’s Fund II closed in March, raising approximately $140 million. Farmland plans to launch a new fund in 2023 and has a pipeline of potential acquisitions.
BlueWeave Consulting projects the U.S. organic food market to reach $95.1 billion in 2027, up from $52.3 billion in 2020. A 2019 BlueWeave study showed a 17% increase in the number of certified organic farms in the U.S. over the preceding three years.
“We see this strong momentum continuing into 2023, fueled by surging consumer demand for organic and regeneratively farmed food,” Wichner said.
