Gratitude Railroad, a New York-based socially conscious investment group that invests in for-profit mission-driven businesses, will launch the Gratitude Farmland Fund (GFF). The $40 million regenerative agriculture fund will focus on acquiring farmland that is undervalued compared to its production potential. Initial capital commitments are planned for the southeastern U.S. where the firm sees the right dynamics present for the low-cost production of high-quality beef and dairy products.
Gratitude Railroad was founded in 2013 by hedge fund CEO, Howard Fischer, and tech entrepreneur and private equity investor, Eric Jacobsen after they attended the Harvard Advanced Leadership Initiative. The two saw a purpose in employing capitalism to effect positive social and ecological change.
GFF is a joint venture launch between Gratitude Railroad and Blackdirt Capital, which was founded by David Nicola and who will manage the fund.
“With his strong investment background and deep grounding in regenerative agriculture, David embodies the kind of investment professional that we seek to attract and partner with to advance our mission,” said Fischer.
Formerly a portfolio manager with BlueMountain Capital, Nicola has had extensive experience in farmland investing, private equity investing, trading, and portfolio management throughout his 13-year career, with the past six years focused on sustainable agriculture in the U.S., especially grass-fed beef, organic grain, and grass-fed and organic dairy.
“I believe that sustainable agriculture businesses, particularly in the grass-fed beef and dairy sectors, are uniquely positioned to offer compelling investment opportunities while also advancing important social and ecological impact,” said Nicola.
Mission-driven, for-profit investment schemes that offer investors healthy returns while also enabling them to have a positive effect on the world around them have been appearing more and more on the investment radar.
Aligned with this model is ecological farming –also called agro-ecology, organic, biodynamic, permaculture, regenerative agriculture, biological farming, conservation agriculture, ecoagriculture, and low input sustainable farming. The practice works to minimize inputs, build soil health, recycle nutrients, support greater diversity within crops, animals and the environment, and reduce the environmental impact of farming while producing high-value foods.
Currently there are seven investment managers managing a combined $500 million in assets pursuing strategies in ecological farming, according to the white paper, The Investment Case for Ecological Farming, issued by SLM Partners. However, this number is sure to grow as attractive risk-adjusted returns from ecological farming systems launch a growing movement that is positioned as an attractive alternative for agricultural investors.
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Lynda Kiernan
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