craig wichner - investing in sustainable agriculture

1Confidential and Proprietary | © 2016 Vital Farmland Fund II, LLC

Farmland LP

ROI of Sustainable Agriculture

2Confidential and Proprietary | © 2016 Vital Farmland Fund II, LLC

• Farmland LP converts conventional farmland to sustainable, certified organic farmland

• Founded in 2009 • Own 10,000 acres, $110 million in assets• 50-person team includes farm and finance professionals

Farmland LP OverviewAttractive returns and a positive impact on our food system and the world

World’s 50 Most Innovative Companies

Fast Company, 2014

Best for the World B Corp

2013, 2014 & 2015

Top 50 Asset Managers Worldwide

ImpactAssets2013, 2014 & 2015

3Confidential and Proprietary | © 2016 Vital Farmland Fund II, LLC

Farmland LP Adds Value

• Price premiums for products grown using organic and sustainable practices

• Livestock and crop rotations increase revenue, soil fertility and land values

• Diversity of crops improves resiliency of farmland and reduces crop risk

• Economies of scale by aggregating farmland acreage

• Strategic relationships with processors, producers and distributors

Scaling up sustainable agriculture

PASTURE CROP

Multi-tenant crop and livestock rotations

PASTURE VEGETABLES

GRAINS & SEEDS

4Confidential and Proprietary | © 2016 Vital Farmland Fund II, LLC

Organic Demand Far Exceeds Supply

“We cannot get enough organics to stay in business day in and day out”

- CEO Craig Jelinek, 2016 shareholder meeting

5Confidential and Proprietary | © 2016 Vital Farmland Fund II, LLC

Demand for Organic Cropland Far Exceeds Supply

• Organic food sales = $43 billion (5% of all US food sales)

• Shortfall in organic farmland = $80 billion opportunity

Certified organic cropland required to grow certified organic food

Source: Goldman Sachs Conference – Sprouts Farmers Market; Market Nutrition Business Journal, Organic Trade Association, US Dept. of Agriculture ERS 2009

Growth of Organic Market Exceeds Farmland Conversion Rate

19971999

20012003

20052007

20092011

20132015

0%

1%

2%

3%

4%

5%

6%5.5%

1.2%M

arke

t Sha

reSupply of U.S. organic cropland

growing at only 6% per year

Demand for o

rganic food

growing at 15% per y

ear

6Confidential and Proprietary | © 2016 Vital Farmland Fund II, LLC

Farmland Market Size$2.4 trillion market size is comparable to other classes of commercial real estate

Farmlan

dReta

il

Multi-Family

Health

CareOffice

Industrial

Hospitality

$-

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

$2.4

$3.0

$2.4 $2.2

$2.1

$1.8

$0.4

Tota

l Mar

ket V

alue

($ T

rillio

ns)

Source: USDA ERS, CoStar Group, Green Street Advisors Commercial Property Price Index (CPPI), and World Bank. 2013 value of CRE calculated by Farmland LP from Costar and CPPI.

Total Market Value of US Commercial Real Estate

$25 Billion (1%) Institutionally Owned

$240 Billion - $1 TrillionChanging Hands Over

Next 10 Years

$2.4 Trillion Farmland Market

7Confidential and Proprietary | © 2016 Vital Farmland Fund II, LLC

Benefits of Sustainable AgricultureCertified organic cropland required to grow certified organic food

Source: USDA Agricultural Marketing Service, Rodale Institute

Aspara

gus

Blueberr

ies

Butternut S

quash

Green Bean

s

Spinach

Yello

w Corn

141% 154%

263%302%

503%

234%

Organic foods command significant price premiums

• Organic foods command a 50% to 200+% price premium

• Increased financial results

• ~3x more jobs created per

acre

• Environmental benefits

• Enhanced society

8Confidential and Proprietary | © 2016 Vital Farmland Fund II, LLC

For more information:

Craig WichnerManaging DirectorCraig@FarmlandLP.com(415) 465.2400www.FarmlandLP.com

Thank ewe