Crowdfunding for agriculture
Agricultural Financing in an Evolving Globalized Marketplace
We understand American farmers and ranchers need every cutting edge they can get today, on the production side and on the finance side. Increasingly, they’re competing not just with the farm in the next state and county, but with farms in emerging countries. The agricultural industry, especially producers, must evolve to fit with today’s globalized marketplace. And that’s where we come in to help.
A New Way to Raise Capital for Agriculture
Farmers, ranchers and landowners often need capital to expand their operations or acquire new land. Most farmers automatically seek ag credit lenders for capital, because it’s what we all know as a traditional funding source. But there are other ways besides bank loans to receive the needed capital. The use of equity partners in crowdfunding is an alternate way to finance land acquisition.
What's an equity partnership?
In crowdfunding, an equity partnership generally consists of a general partner (GP), or an active investor, and limited partners (LP), or passive investors. The GP makes all the decisions on operating an investment while the LPs simply invest money passively and collect returns from harvests or rents. Simply put, the farmers and ranchers are the GP who keeps the operation running however they choose, while the investors are the LPs who have no say in the operation, and help bring capital to the farm and receive returns from harvests.
For more information on how Harvest Returns’ platform can help you, take a look at our How Our Platform Works page.
Who should sponsor a deal with Harvest Returns?
Experienced farmers, growers, ranchers, and landowners interested in expanding their operations or acquiring new land.
Farmers and landowners who are "land rich," but would like to trade some equity for cash, while continuing to control their land.
Young farmers who have trouble getting traditional ag credit and want to get their own piece of land or buy out siblings on a multi-generational farm.
Ranchers who want to market their absentee ownership programs to investors.
Land owners who want to sell a conservation easement to investors for the tax benefits.
Growers considering a project in a Qualified Opportunity Zone.
Capital Raise Process
2) Due Diligence
If your project meets our requirements, we will request additional documents to learn more about your project. A clear and transparent business plan coupled with organized and complete financial projections are the best starting point.
3) Listing Agreement
The agreement lays out the terms of the crowdfunding raise and what you can expect from the process as far as time, effort, and costs to you.
4) Live on Platform
After the project is set up and ready for investors, it goes live on the platform to accept investments from qualified investors. Harvest Returns will work to help you maximize the chances of a successful raise and maintain compliance with U.S. Securities regulations.
5) Close Raise & Receive Funds
You will receive the funds after the raise has successfully closed. You will work with Harvest Returns over the course of the operation to keep investors updated, provide financial statements and tax documents, and make investor distributions.