GreenYield
09 Jun 2024
10 Jun 2024
While the value GreenYield provides to investors is clear, we are often asked what do you do for the farmers. The answer is a lot. Our management team has deep experience in agriculture, with many members personally involved in farming long before GreenYield was founded. We understand the challenges farmers face in today’s environment. While we cannot magically fix every problem, we support farmers in meaningful ways that make a real difference.
One of the biggest advantages GreenYield offers is access to capital. Sometimes a farmer wants to expand onto a neighboring parcel of land but does not have the funds to purchase it. In this situation, the farmer can present the land to GreenYield’s investors. The investors acquire the land and lease it back to the farmer, giving him an opportunity he might not otherwise have access to. This creates economies of scale because he can use his existing equipment and labor on the new acreage, which helps grow his business and improve his bottom line.
Another path for expansion is allowing a farmer to sell a portion of their ownership in land in order to buy additional farmland. Traditionally farmers would take a loan from a bank backed by their owned land. With GreenYield, they can instead sell a selected portion of the parcel and use the proceeds to reinvest in expansion.
More financing options give farmers more control over their financial and personal goals, which is one of the parts of our business we care about the most.
Around forty percent of farmland in the United States is owned by absentee landlords who rent the land to farmers. Farmers usually pay rent up front before planting season. While some owners budget for needed improvements, many do not. That can create problems when urgent repairs come up.
For example, if a water pump on an electric well breaks during a hot stretch of summer and the landowner cannot respond quickly or does not have the cash to help, the farmer is placed in a difficult position. He must either pay for the repair himself or risk crop loss due to lack of water.
When working with GreenYield and our management partners, farmers have reliable support when improvements are required. Whether it is drainage, ditching, access roads, or other enhancements, we move quickly and make sure farmers have the backing they need. These improvements not only help the farmer but also increase the long term value of the land.
GreenYield works with farms of all sizes and across many unique situations. Small conservation focused farms, large commercial operations, simple ownership structures, and complex family owned parcels. We see it all.
We help farm owners and farmers understand the value of their land and the options available if they choose to sell. Even when we do not enter into a commercial partnership with an owner, we are always open to sharing insights and helping them understand potential opportunities.
Land valuation and the selling process can be stressful and confusing. Having someone walk you through it can provide clarity, relief, and confidence.
Farmers know their land better than anyone and we never claim to know more than they do. However, our experience operating across tens of thousands of acres has exposed us to a wide variety of challenges and solutions.
The world of agricultural technology can be overwhelming. New tools emerge constantly, from planters and seed solutions to mapping software and financial platforms. We have evaluated countless products and know which ones truly help and which are simply unnecessary distractions.
A typical conversation might go like this:
Farmer: Have you seen this new planting software
GreenYield Operations Team: Yes. We also saw they faced funding setbacks and layoffs. You may experience reduced support or limited features. You might want to consider this alternative solution instead.
Local knowledge is irreplaceable. GreenYield supports farmers through national industry insights and an understanding of legal considerations, land improvement, valuation, and operational strategy. We let farmers focus on what they do best and support them wherever possible.
Farmers usually know their local markets better than anyone else, but our national reach allows us to provide additional perspective when needed. Our years of combined regulatory experience, valuation expertise, and land brokerage insights help us bring value beyond the local level.
GreenYield also maintains a wide network of both individual and institutional investors along with partners across the country. This gives farmers access to opportunities they may not find elsewhere.
These are only some of the ways GreenYield helps farmers grow and operate more efficiently. Every farm is unique and every situation requires its own solution.
If you are a farmer, a farm owner, or someone interested in learning more about investing in farmland, we encourage you to reach out anytime.
The content in this article is for general educational and informational purposes only. Any performance mentioned is historical and does not guarantee future results. All investments involve risk, including the possible loss of principal. Diversification does not guarantee profit or protect against loss. Each investor should carefully consider their objectives, risk tolerance, tax situation, and liquidity needs before investing. Investment options differ in risk level, fees, and goals and may not be suitable for everyone.
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