Our investment philosophy
The case for ecological farming and forestry
Agriculture and forestry systems are heavily dependent on and highly impact climate and nature.
All the economic value generated by agriculture and forestry operations is highly dependent on nature. These systems rely on critical ecosystem services, such as soil fertility, nutrient cycling, pollination, water purification, natural pest control and climate regulation. Unfortunately, industrial food and timber production systems tend to exploit, rather than work with, nature. They degrade the natural capital – soils, water and biodiversity – on which they depend and this exposes them to many risks.
There are alternative ways to manage land that can minimise these risks and generate a positive environmental impact while increasing profitability.
All around the world, there are farmers and foresters who have developed profitable regenerative systems. Their systems build soil health, minimise external inputs and production costs, recycle nutrients and energy, embrace produce diversity, create carbon sinks, restore biodiversity and produce high value food, fiber and timber. Their systems enhance and protect their natural capital instead of depleting it, addressing at the same time our need for food and materials, climate change adaptation and mitigation, and biodiversity.
These farmers and foresters need capital to grow and transition more land to regenerative systems.
Across SLM's core regions, United States, Europe and Australia, investors can directly assist by acquiring or leasing land and placing it with operators who are experts in regenerative management. Successful investment strategies involve long-term partnerships between investors and carefully-selected farmers and foresters, acting as stewards of the land with aligned incentives.
Dive deeper
Investing in Regenerative Agriculture: Reflections from the past decade
February 2024
OUR STRATEGIES
How We Work
Safe geographies
We focus on low risk developed countries with strong property rights so that returns are primarily driven by transformative land management. We are currently active in Australia, the USA and the European Union and we will continue to focus on these regions.
Proven ecological systems
We identify ecological land management systems that deliver superior profits and strong environmental benefits. These systems are usually not yet mainstream but have the potential to be scaled. We carry out extensive research and financial analysis to understand environmental impacts and profitability.
Investor alignment
We develop funds and separate accounts to match our investment strategies with the needs of our investors, who are mainly institutional investors, family offices and foundations. We seek to minimize fees, to co-invest alongside investors and to tie our incentives to the success of our strategies.
Attractive markets
We target specific products and markets that have attractive supply-demand dynamics and good growth prospects. We pick regions with the right soil and climatic conditions, competitive land values and favourable production economics for growing our target products.
Skilled operational partners
We partner with local farmers and foresters who have a strong track record in managing our selected systems. We have seen enough projects go wrong to realize the critical importance of having skilled land managers in place from the start. In our strategies, we identify the right partners first and then work with them to find investment opportunities.
Keen awareness of risk
Our investors accept the return profile of land assets because of the lower risks. When developing strategies, we put a strong emphasis on understanding and mitigating risk. In particular, we assess the impact of a changing climate and build resilience into our farms and forests.