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Middle Bit: FarmlandFinder announces online farm sale-leaseback program

February 12, 2021

FarmlandFinder announced this week a sale-leaseback program as a part of its online marketplace for farmland.

“Talking with farmers, there is a contagious curiosity to find ways to unlock equity that’s tied up in their land without giving up control of the property or taking on additional debt,” said Steven Brockshus, Founder and CEO of FarmlandFinder in a release. “Through our private investment platform, a farmer can apply for a sale-leaseback and if they qualify, they’ll get connected with a qualified investor who partners with them to help unlock equity.”

A farm sale-leaseback can be an effective means of alternative financing for progressive farmers. How does it work? An investor acquires the land from the farm owner-operator and then leases it back to them on a long-term basis. This program can provide value to farmers seeking an alternative financing solution. A sale-leaseback provides liquidity to the farmer while helping them maintain on-going operational control of the land. By pairing an owner-operator with a qualified investor through the FarmlandFinder platform, a sale-leaseback can be done in a few simple steps.

“It could be a good program for a retiring farmer whose equity is tied up in the land, but they’d like to keep farming for a few years,” said Peter Jaques, Head of Real Estate at FarmlandFinder. “Or a progressive farmer who wants to take the equity from one property and use it to buy another piece of land or invest elsewhere in their operation. The other time a program like this could be useful is when a farmer has fallen on hard-times and they need to free up some cash to keep the farm going. It may not be ideal, but at least there’s an option.”

There is no up-front cost to the farmer for entering into a sale-leaseback and it can be a flexible alternative financing tool to help producers achieve a variety of objectives.

Techstars Iowa AMA: Meet the Partners

Next Wed., Februrary 17th Techstars Iowa will hold an online event where you can meet the Techstars Iowa Team including Program Staff and partners from Grinnell College, Iowa State University, and the University of Iowa. 

Attendees will hear about what it’s like to build & scale in an accelerator program and gain insight into Iowa’s growing startup community.

Register for the online event here.

CYstarters student accelerator applications are due March 8

CYstarters is now recruiting its sixth cohort. The 11–week intensive program gives young entrepreneurs the time, funding, network of mentors, and skill-set development to start something while at Iowa State. 

Students will receive $6,500 per individual or up to $13,000 per student team for the opportunity to spend the summer dedicated to achieving startup goals and pursuing entrepreneurial aspirations. The program will run from May 17 through July 30, 2021. 

The program is open to current and recent ISU students.  The deadline to apply is March 8. 

Middle Bit: FarmlandFinder announces online farm sale-leaseback program | Clay & Milk
A central Iowa ag-tech accelerator has secured more backers and finally has a name. The Greater Des Moines Partnership first announced the accelerator last year, naming four initial investors. On Monday, the Partnership said the program will be called the "Iowa AgriTech Accelerator" and named three new investors. The new investors include Grinnell Mutual, Kent Corp. and Sukup Manufacturing, all Iowa companies. They join investors Deere & Co., Peoples Co., Farmers Mutual Hail Insurance Co. and DuPont Pioneer. Each investor has agreed to put up $100,000 for the first year of the accelerator. Startups entering the program will receive $40,000 in seed funding in exchange for 6 percent equity. Tej Dhawan, an angel investor and local startup mentor, is serving as interim director until the AgriTech Accelerator names a permanent leader. Dhawan held a similar role with the GIA before Brian Hemesath was named as managing director. As interim director, Dhawan said his main job includes hiring the accelerator's executive director, establishing a business structure and initial recruiting for the first cohort. The accelerator will place few filters, such as location and product, on the applicant pool, Dhawan said. "When you’re seeking innovation, innovation can come from every corner of the world so why restrict ourselves," he said. One area the the AgriTech Accelerator won't recruit from is biotech. For its first cohort, the AgriTech Accelerator will work out of the GIA's space in Des Moines' East Village, Dhawan said. A future, permanent home is still to be decided. The accelerator's program will host startups from mid-July through mid-October, ending with an event connected to the annual World Food Prize. The GIA, which the AgriTech Accelerator is based on, also ends with presentations at an industry event. The accelerator has also started lining up a mentor pool. The Iowa Corn Growers Association, Iowa Soybean Association and the Iowa Pork Producers Association have agreed to provide mentors, as has Iowa State University. While the AgriTech Accelerator is loosely based off of the GIA, it will differ in its business structure, Dhawan said. The GIA runs through a for-profit model for both operations and its investment fund. The AgriTech Accelerator will have a nonprofit model for its operations and a for-profit setup for its fund. Dhawan said the nonprofit model is being used so the accelerator can better work with other nonprofit partners, such as trade associations. "These are all organizations that are nonprofits and can be amazing stakeholders without ever having to be investors in the accelerator," he said. "It becomes easier to work with trade associations in their nonprofit role when we are also a nonprofit." When it's up and running, the AgriTech Accelerator would be one of a handful of ag-focused startup development programs in Iowa. Others include the Ag Startup Engine out of Iowa State University and the Rural Ventures Alliance from Iowa MicroLoan. Matthew Patane is the managing editor and co-founder of Clay & Milk. Send him an email at mpatane@clayandmilk.com.
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