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- Fractal Expands Farmland Co-Investment Product Amid Farmer Financial Strains
Fractal Expands Farmland Co-Investment Product Amid Farmer Financial Strains
Slice of Agriculture Team
September 03, 2024
Key Highlights:
Fractal expands its farmland co-investment product, addressing critical financing needs.
$15MM capital raised, $8MM deployed to leading farmers across the Midwest.
Farmers benefit from lower and more flexible payments compared to traditional debt.
USDA projects significant declines in farm income and working capital in 2024.
Fractal's model offers passive, minority investments while keeping farmers in control.
Source (PR Newswire)
Notable Quotes:
"We've seen one of the largest declines in working capital and farm incomes over the past year that I've seen in my 30+ years in agriculture."
"Capital is quickly becoming farmers' biggest need on the farm. For many farmers, it may be the difference between buying out a landlord versus losing acres or making key investments versus pushing them off another year."
"Growing family-owned farms requires significant cash for the capital needed for land, improvements, and equipment."
Our Take:
Fractal's expansion comes at a critical time for American farmers, who are grappling with significant economic challenges. The company’s innovative co-investment model provides a viable alternative to traditional debt, offering farmers much-needed financial flexibility while allowing them to retain control over their land. This approach not only strengthens farm operations but also aligns the interests of farmers and investors, promoting sustainable practices and long-term profitability. As economic pressures mount, Fractal's solution could play a key role in preserving the viability of family-owned farms across the Midwest.