Crowdfunding for agriculture
“Our partners at KrogerFarms could not have been more helpful in finding interested investors and shepherding us through the process.”
Agricultural Financing in an Evolving Globalized Marketplace
We understand American farmers and ranchers need every cutting edge they can get today, on the production side and on the finance side. Increasingly, they’re competing not just with the farm in the next state and county, but with farms in emerging countries. The agricultural industry, especially producers, must evolve to fit with today’s globalized marketplace. And that’s where we come in to help.
A New Way to Raise Capital for Agriculture
Farmers, ranchers, and agribusinesses often need capital to expand their operations or acquire new land. Most farmers automatically seek ag credit lenders for capital, because it’s what we all know as a traditional funding source. But there are other ways besides bank loans to receive the needed capital. The use of equity partners in crowdfunding is an alternate way to finance land acquisition.
What's an equity partnership?
In crowdfunding, an equity partnership generally consists of a general partner (GP), or an active investor, and limited partners (LP), or passive investors. The GP makes all the decisions on operating an investment while the LPs simply invest money passively and collect returns from harvests or rents. Simply put, the farmers and ranchers are the GP who keeps the operation running however they choose, while the investors are the LPs who have no say in the operation, and help bring capital to the farm and receive returns from harvests.
For more information on how KrogerFarms’ platform can help you, take a look at our How Our Platform Works page.
Who should raise capital with KrogerFarms?
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Experienced farmers, growers, ranchers, and landowners interested in expanding their operations or acquiring new land.
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Young farmers who have trouble getting traditional ag credit and want to get their own piece of land or buy out siblings on a multi-generational farm.
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Livestock ranchers who want flexible financing to grow their herds.
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Established agribusinesses that need outside capital to expand their operations or develop value-added processing facilities.
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Controlled Environment Agriculture developers.
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Growers considering a project in a Qualified Opportunity Zone.
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New! Agtech companies raising a seed round ($400,000 - $1 million).
Capital Raise Process
1) Application
2) Due Diligence
If your project meets our requirements, we will request additional documents to learn more about your project. A clear and transparent business plan coupled with organized and complete financial projections are the best starting point.
3) Listing Agreement
The agreement lays out the terms of the crowdfunding raise and what you can expect from the process as far as time, effort, and costs to you.
4) Live on Platform
After the project is set up and ready for investors, it goes live on the platform to accept investments from qualified investors. KrogerFarms will work to help you maximize the chances of a successful raise and maintain compliance with U.S. Securities regulations.
5) Close Raise & Receive Funds
You will receive the funds after the raise has successfully closed. You will work with KrogerFarms over the course of the operation to keep investors updated, provide financial statements and tax documents, and make investor distributions.
Interested in learning more about the capital raise process? Set up a call with our team to discuss your project.
“The entire KrogerFarms team ran a thorough and efficient fundraising process that allowed Precision Livestock to tap into the high level of interest in the agricultural community to provide practical solutions to the livestock industry.”
“ We are very pleased with the results of our partnership with KrogerFarms as it provided access to a base of investors outside Blackdirt’s existing network and proved to be an effective platform for raising capital. We look forward to working with the KrogerFarms team again in the future.”