Financing the Regenerative Transition
Right now, ranching and farming in the United States is undergoing a sea change. Forty percent of farm and ranchland in the country is expected to change hands in the next 15 years, according to the most recent USDA Census of Agriculture. And it’s no secret that there are plenty of barriers preventing young and beginning producers from getting into agriculture, with access to land and capital at the top of the list, according to a nationwide survey commissioned by the National Young Farmers Coalition.
At the same time, land use conversion is also unfolding at an alarming rate. From 2017 to 2022, 20 million acres, or 2.2% of all working lands, were taken out of agriculture, according to the USDA’s ag census. “This survey is a wake-up call,” said Secretary of Agriculture Tom Vilsack. “It’s essentially asking the critical question of whether as a country, we are okay with losing that many farms, okay with losing that much farmland? Or is there a better way?”
An increasing number of private, non-profit and public sources of capital are seeking to answer this last question with a resounding “yes!”
Real estate investment, tailored to ag
“Traditional financial products often fail to meet the unique challenges faced by farmers, particularly those looking to implement regenerative practices,” explains Dominick Grant, managing director of Dirt Capital Partners. “By developing customized financial support, we’ve been able to help farmers overcome barriers to land access while also balancing the other capital and resource priorities of expanding an operation, diversifying production and investing in soil health.”
Dirt Capital was founded in 2014 and the firm partners with sustainability-focused producers to co-invest in land acquisitions and ag infrastructure, offering the time, resources and flexibility needed to grow their operations.
Iroquois Valley REIT is another veteran land access finance partner. As a real estate investment trust, they offer long-term leases, mortgages and lines of credit to organic and transitioning farmers across the United States. Started in 2007 with a focus in the Northeast, before the current regenerative agriculture parlance came to prominence, Iroquois has built a steady business investing in the organic transition. Producers who work with Iroquois Valley can also apply for grant funding opportunities, including their Soil Restoration Pool grant program that funds soil health and conservation projects.
Angel investors support for the regen supply chain
Some companies have taken an even more comprehensive approach to Vilsack’s question.
Self-described as the “world’s first crowdfarming platform,” Steward is a community lending platform that allows individuals to support regenerative agriculture projects in their region. Steward stands apart from traditional banks or lenders by being exclusively dedicated to regenerative food systems. The company provides flexible loan terms and professional services specifically tailored to the needs of each operation. “Anything that’s not them on the farm working, that’s something Steward can help with,” says Dan Miller, founder and CEO of Steward.
While Steward is deploying the crowdfunding model to agriculture, Mad Capital is connecting farmers and ranchers with high-net-worth investors and foundations, including Builder’s Vision and The Rockefeller Foundation.
“We are aiming to build a bridge between two distant worlds that need one another to transition our food system – Wall Street and organic farmers,” says Brandon Welch, co-founder and CEO at Mad Capital, which sprung out of regenerative agriculture advocacy pioneer Mad Agriculture. “Providing farmers with access to capital gives humanity a shot at producing an abundance of healthy food while being ecologically accountable to our working lands and those that steward them.”
Homegrown grassroots solutions
Meanwhile, some communities that have long been overlooked or underserved by financial institutions are creating their own solutions.
Rural communities need more than just ranches to thrive. In the small ranching community of Winnett, Montana, “businesses meet our local needs and build strength and resilience in our economy,” the website says. To support their community, residents in Petroleum County recently created The Opportunity Development Co-Op of Petroleum County. This revolving loan fund, established in 2024, will allow interested community members and investors to support a variety of projects including business expansion, new business and housing.
There’s a similar community-funded approach gaining steam across Colorado. It’s called SOIL, which stands for Slow Opportunities for Investing Locally.
“Where’s the money going to come from to support this next generation of farmers? It has to come from us,” says Woody Tasch, founder of the Slow Money Institute, a non-profit that pioneered the SOIL model in Boulder and Carbondale. Now the group supports local communities in establishing their own SOIL programs, including SOIL Sangre De Cristo. Members make a tax-deductible contribution to the loan fund, and participate in the voting process to grant 0% interest loans to local ranchers, farmers and other food enterprises.
As agriculture in the United States navigates this pivotal shift, a new wave of financial solutions is stepping up to meet the moment. These efforts – from tailored investment in regenerative practices to grassroots funding models – are just one component of a holistic solution to keeping working lands vibrant and productive. The future of our farms and ranches depends on more than just land; it hinges on our collective willingness to support those who care for it.
Legal: Any mention or listing of specific companies, products or services herein is solely for educational purposes and does not imply endorsement by Western Landowners Alliance, or our partners, nor discrimination against similar companies, products or services not mentioned.
