Signs of stress are visible in markets for MidWest farmland and California orchards while ranchland and properties in Coastal California are finding sources of support, according to Terrain Ag.
Terrain – an analytic collaboration among three Farm Credit Associations established in 2022 – described, in a report entitled Farmland’s Value Drift, a collection of markets experiencing varying effects of what it described as a general decline in farm liquidity.
“Investors should be aware that some held farmland properties will need to be marked down slightly, whereas others remain stable or are still increasing in value,” analysts wrote. “There will likely be more opportunities to enter the market that require careful assets valuation.”
Terrain described state-level differences among Midwestern states where farmland has recently seen some degree of decline after a cycle since the first quarter of 2020 that has seen a 9 percent increase across Federal Reserve regions.
On ranchland values, the firm cites “the Yellowstone effect” of the television show as a factor highlighted by appraisers, alongside the pandemic, as driving increased demand for lifestyle homes.
In the coastal regions of California, Terrain highlighted that those counties’ general focus on locally consumed strawberries and lettuce has protected profit margins relative to the export-dependent tree crops that dominate in the Central Valley.
CapMan sells 24,000ha forestry asset to Inter Ikea
CapMan Natural Capital has sold 24,000ha of timberland assets to Inter Ikea Group. Financial details were undisclosed.
The forestry assets – held within the Dasos Timberland Fund II vehicle – are located in Latvia and Lithuania.
CapMan, a Finnish private asset manager, acquired Dasos Capital in December 2023, with Dasos now forming the core of the CapMan Natural Capital unit.
CapMan said in a statement that the assets were acquired more than a decade ago and have been managed with “a comprehensive programme of sustainable forest management and operational improvements that strengthened the condition, productivity and long-term resilience of the forests.”
Dasos Timberland Fund II closed on €234 million in 2014, more than double the size of its €100m predecessor, but fell short of its €300 million target.
The vehicle was backed by the European Investment Bank and Finnish Innovation Fund Sitra, among others.
Read the full story and get fund performance data here.
Duxton sells 535ha farm in A$5.1m deal
ASX-listed agricultural asset manager Duxton Farms has sold a 534.7ha farmland asset for A$5.1 million ($3.3 million; €2.9 million).
“The transaction includes… 828 megalitres’ worth of water entitlements, with the remaining 570 megalitres of ground water to be retained within the portfolio,” said a statement from Duxton Farms.
The identity of the buyer was not disclosed.
In June, Duxton announced plans to merge four of its unlisted Australian agribusinesses as it looked to diversify its operations.
The four companies are: Duxton Dried Fruits, Duxton Dairies (also referred to as Duxton Walnuts), Duxton Bees and Duxton Orchards.
Shareholders of the acquired companies would own about 53.4 percent of Duxton Farms if all acquisitions go through.
VC fundraising
BioFiltro, a California-based regenerative and nature-based wastewater treatment company, received a $35 million investment from Jordanelle Capital.
Overstory, a Netherlands-based company which specializes in vegetation intelligence for the utility industry, raised $43 million in a Series B funding round led by Blume Equity, with participation from Energy Impact Partners LP, B Capital, Semapa Next, Pale Blue Dot, CapitalT, Convective Capital, Bentley Systems, MCJ and Moxxie Ventures.
Marble Imaging, a German big-data Earth observation company that provides land cover and terrain analysis services, raised €5.3 million in a seed funding round led by High-Tech Gründerfonds, with participation from BAB Beteiligungs- und Managementgesellschaft Bremen, Lightfield Equity, Oslo Venture Company, Sentris Capital and SpaceFounders, among others.
Ripple Foods, a California-based high-protein, allergen-free, plant-based milks provider, raised $17 million in a funding round backed by Material Impact Rich Products Ventures, S2G Ventures, Prelude Ventures, Fall Line Capital, Euclidean Capital, Tao Capital Partners and Tim Koogle.
UpTerra, a California-based farm performance technology company, received an investment of an undisclosed size from Generation Food Rural Partners Fund.
Also in the news…
New Dutch policy allows pre-market tastings for fermentations in EU first New code of practice allows companies to host tasting events for fermentation-made cheese, eggs and fats (Food Manufacture).
EU bioeconomy strategy to support fermentation-based food innovation The strategy sets out measures intended to help fermentation-focused food innovators scale up production and navigate the EU’s regulatory system more easily (FoodBev).
Seascape Aquatech bets on robotics to reinvent oyster farming The oyster farming industry has been grown steadily but the tech has not kept pace, says robotics start-up Seascape Aquatech (AgFunder).
‘Number one question’: Sea lice may finally decide fate of Canada’s west coast salmon industry Despite a more industry-friendly government in power, the sea-lice issue isn’t going away with the netpen ban policy hanging in the balance (IntraFish).
Israel and US sign agriculture trade agreement to clinch concessions on Trump tariffs From January, Israel will lift remaining duties on US agriculture goods as the country closes in on a new deal to lower Trump tariffs on some Israeli exports (Times of Israel).
EU reaches agreement on use of new genomic techniques in agriculture The European Parliament and EU member states have reached a political agreement on the use of “new genomic techniques” in the agri-food sector, the Danish presidency of the council confirmed on Thursday (Belga News Agency).
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