Farmland LP hires new GP, increases organic certification

Organic farmland fund manager Farmland LP has hired a new general partner, Stephen Hohenrieder, who joined the firm from Bio-Logical Capital, another agri-focused investment manager, where he was a partner.

He also founded Featherstone Holdings, a real asset focused family office advisory firm.

Hohenrieder has joined Farmland LP as a further 140 acres of the firm’s land was certified organic. This means the manager has more than 1,000 acres of organic certified land, according to Erin Roach, vice president of marketing and investor relations at Farmland LP.

“It’s very exciting and growers are pleased about the opportunity to get fast-tracked to a more lucrative market by stepping right into primed, certified organic land,” Roach said. “It takes three years to get land certified organic, and meanwhile, the market can’t wait. The demand for organic products far outstrips the supply, which is the reason for organic price premiums. We convert the land so farmers don’t have to do it.” Roach added.  “There are a lot of conventional farmers who’d be willing to grow organic, but have barriers to getting there like knowledge or risk. We make it easy for them.”

All of Farmland LP’s 1,000 certified acres are leased out to farmers.

Farmland LP held the first close of its new real estate investment trust (REIT) last November and would not comment on the REIT’s progress since, although it is targeting $250 million. The firm closed its first collective investment vehicle, a limited partnership fund, at the end of 2013 on $50 million.

A US-based regenerative agriculture fund manager, Farmland LP prioritises three things in the management of its land: prohibiting the use of pesticides or antibiotics, practicing sustainable production and promoting locally grown food to consumers. The firm acquires conventional farmlands and converts them to organic farmlands.