craig wichner - investing in sustainable agriculture

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Farmland LPROI of Sustainable Agriculture

#Confidential 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

Worlds 50 Most Innovative Companies Fast Company, 2014Best for the World B Corp2013, 2014 & 2015

Top 50 Asset Managers Worldwide ImpactAssets2013, 2014 & 2015

#Confidential and Proprietary | 2016 Vital Farmland Fund II, LLC

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Farmland LP Adds ValuePrice 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 distributorsScaling up sustainable agriculturePASTURECROP

Multi-tenant crop and livestock rotations

PASTUREVEGETABLES

GRAINS & SEEDS

#Confidential and Proprietary | 2016 Vital Farmland Fund II, LLC

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Organic Demand Far Exceeds Supply

We cannot get enough organics to stay in business day in and day outCEO Craig Jelinek, 2016 shareholder meeting

#Confidential and Proprietary | 2016 Vital Farmland Fund II, LLCDemand for Organic Cropland Far Exceeds SupplyOrganic 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 foodSource: Goldman Sachs Conference Sprouts Farmers Market; Market Nutrition Business Journal, Organic Trade Association, US Dept. of Agriculture ERS 2009Growth of Organic Market Exceeds Farmland Conversion Rate

#Confidential and Proprietary | 2016 Vital Farmland Fund II, LLC

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

#Confidential and Proprietary | 2016 Vital Farmland Fund II, LLC

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Benefits of Sustainable Agriculture

Certified organic cropland required to grow certified organic foodSource: USDA Agricultural Marketing Service, Rodale Institute Organic foods command significant price premiumsOrganic foods command a 50% to 200+% price premiumIncreased financial results~3x more jobs created per acreEnvironmental benefitsEnhanced society

#Confidential and Proprietary | 2016 Vital Farmland Fund II, LLC

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For more information:

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

#Confidential and Proprietary | 2016 Vital Farmland Fund II, LLC

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