A Fort Worth-based agriculture investment platform called Harvest Returns has recently found success in what was once a niche market: grass-fed livestock.
A financial technology marketplace that works by way of equity crowdfunding, Harvest Returns has raised nearly $10 million for farms and ranchers globally, and more than $4.8 million for grass-fed sheep and cattle producers in the U.S.
The company was launched in 2016 by military veterans Chris Rawley, CEO, and Austin Maness, COO. Harvest Return’s mission is to connect agribusiness investors to farmers and ranchers in need of funds, whether it’s for an expansion of operations, new land, cashing in on equity, or buying out siblings on a multi-generational farm.
A raise, funded by limited partners or passive investors, allows for these producers to gain capital without taking out a loan from a bank or Ag Credit lender. In exchange, investors collect return on their investments from harvests and rents.
In June, Rawley told MSN Money in an article titled, “19 areas to invest in during a financial crisis,” that agriculture investments are considerably safe during economic downturns because they are not correlated to the stock market. “In times of a recession, food consumption continues, so companies that produce and process food can maintain their cash flows,” he says.
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Rawley tells us that since the company’s first raise with a grass-fed producer in 2018, they’ve noticed an uptick in consumer demand for grass-fed beef, as well as an increase in producers looking for financing to expand their herds.
A report by market research company Technavio states grass-fed beef markets are poised to expand by $14 billion by 2024, and to progress at a Compound Annual Growth Rate of nearly six percent.
“Grass-fed beef has weathered COVID-19 impacts with many producers greatly expanding their direct-to-consumer sales as restaurant demand declined significantly,” Rawley says. “Our investors enjoy the secured yields these private placement offerings provide that greatly outpace commercial bond markets.”
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David Nicola, CEO of Blackdirt Farms, a grass-fed cattle producer that has completed three successful raises with Harvest Returns, says, “We are very pleased with the results of our partnership. It provided access to a base of investors outside Blackdirt’s existing network and proved to be an effective platform for raising capital.”
Jed Wood, co-owner of Fort Worth agricultural service Agridime, says Harvest Returns “helped us grow significantly by expanding our ability to allow individual investors the opportunity to invest in cattle and receive better returns than what they would receive annually on the stock market.”
Rawley says Harvest Returns is anticipating to work with many more grass-fed producers in the next year. “The stagnant agriculture finance system is failing these innovative ranchers,” he says. “Helping grow domestic grass-fed meat production is a win-win for America’s ranchers and investors.”
The Link LonkDecember 31, 2020 at 11:04PM
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Grass-fed beef is good business: Fort Worth agriculture investment firm sees high demand during COVID-19 - The Dallas Morning News
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