Farmers Business Network (FBN) says it will not be bringing its new farm equity financing program to Canada in the near term.
The California-based company, which aims to shake up traditional business models in crop production, launched its “Farmland Capital” program near the end of October.
FBN said they will offer farmers up to 25 per cent of a farm’s value in cash in exchange for becoming a passive minority partner holding a share of the farm’s equity, which the farmer can buy back at market prices at any time over the subsequent decade.
“There is very limited access to capital in the market for farmers, which results in farmers having to make tough, no-win decisions for their farm,” said Dan English, General Manager of FBN Finance. “Farmland Capital from FBN Finance provides critical access to funding, leading to farmers having unprecedented flexibility and numerous lucrative options in managing their operation. We’re excited to invest in the most innovative farmers on earth: FBN members.”
A spokesperson for the company tells RealAgriculture there is no plan to offer the equity program in Canada in the short term, but it may be offered in the future.
Meanwhile, Archer-Daniels-Midland (ADM) and FBN announced an expanded partnership in late November, which saw ADM Ventures acquire an undisclosed minority stake as part of FBN’s $300 million Series G fundraising round.
The two companies say they are examining “several areas of collaboration, including developing premium end markets for low-carbon grain that will reward farmers for the adoption of regenerative practices.” ADM and FBN said they are continuing a pilot program launched earlier this year in the U.S., which uses FBN’s Gradable platform to measure and verify the carbon score of soybeans, and to connect farmers with end-use customers who want to purchase low-carbon intensity crops.
In Canada, meanwhile, FBN acquired Haplotech and Cibus’ Canadian canola breeding programs in 2020.
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