Dan Miller’s desire to make a difference in agriculture derives not only from his mother’s family farm on the Chesapeake Bay, but also from an unusual source: real estate in Washington, D.C.
Miller began meeting local farmers while refurbishing houses and leasing buildings to budding cooks in the city. He saw an issue.
“I was astounded to learn that the farmers selling to the chefs were having financial difficulties. The usual, large-commodity paradigm does not match smaller-scale, diversified sustainable enterprises. Because they didn’t have access to traditional sources of money, it appeared that even if people needed their items, there was a funding vacuum,” Miller says.
Miller’s response to the gap is Steward, which debuted in 2016. The Steward Farm Trust is a platform for “crowdfarming.” Anyone in the United States can contribute as little as $100 to the trust, which helps farmers acquire the financing they need to expand. Individual, accredited investors can contribute to Steward’s loans and receive monthly interest payments from the farms they pick.
In the last two years, the site has received over 2,000 applications from farmers across the country. “We began with two urban farms in Detroit, believing that we could best serve the smaller niches that the traditional agriculture system overlooks. “We quickly discovered that most smaller-scale, diverse farms have financial difficulties,” Miller adds.
They’ve now put money into 16 businesses, including a livestock farm in Louisiana, a hemp farm in southern Oregon, and a grain and dairy farm in Pennsylvania. Despite their uniqueness, all of the farmers have one thing in common: they enjoy what they do, care for the land, and are proud of their goods.
How It Works
GoSteward.com, Steward’s website, features an online application that includes questions about the applicant’s background, products, land, and infrastructural requirements. A team of experienced farmers will analyze applications and conduct phone interviews and site visits for serious candidates.
Depending on the farmer, different qualifications are required. Steward’s purpose is to be adaptable to a range of demands, but one of the farm’s most important requirements is that it be run with regenerative and sustainable principles.
“We’re talking about soil and watershed ecology, carbon sequestration, and business model sustainability.” This might be accomplished by minimizing the usage of chemicals, inputs, pesticides, and reusing waste, according to Miller. “It may be selling directly to establish a smaller economic loop that is less susceptible to market fluctuations.”
Steward creates a term sheet based on land-secured mortgage loans, which typically range from $25,000 to $1 million. As part of a long-term strategy, it also offers short-term unsecured loans for immediate needs. The money can be used to buy land, buy equipment, and do other things.
East Fork Cultivars
In 2018, East Fork Cultivars got funding. Steward assisted the family-owned cannabis farm in acquiring 24 acres of property in southern Oregon to boost its hemp production.
Mason Walker, the CEO of East Fork Cultivars, recalls the difficulties in obtaining funding for expansion. “The price per acre for the land was extremely costly from an agricultural standpoint, so we couldn’t acquire any typical financing.” There were also no lenders prepared to lend to a new hemp farm because of our sector. “We contacted our Steward friends, whom we met in 2017,” Walker adds.
Steward supplied $640,000 in funding against the project’s $800,000 worth. The acquisition price included the property as well as the infrastructure for irrigation, drying systems, and a new storage facility. East Fork Cultivars finished the build-out in 2019, increased its cultivated acreage to 12 acres, and became USDA organic-certified, making it one of the first in the country.
With three pillars of values: social responsibility, environmental responsibility, and science-based education, East Fork Cultivars serves as a living laboratory for sustainable agriculture. That means supporting small family farms, fighting for cannabis legalization, paying a minimum salary of $20 per hour for seasonal workers or $40,000 per year for permanent employees, offering health insurance and retirement plans for employees, and using natural agricultural techniques.
Carbon sequestration, soil health, creating inputs, and supporting research initiatives on natural pest management and the impact of cannabis and hemp growing on wildlife habitats are all priorities for the company.
Everything in the cannabis and hemp industry, according to Walker, is challenging. Despite this, the firm expects $800,000 in revenue from its first hemp crop, because to Steward, the increasing hemp industry, and its organic certification.
Investing with Values
Steward began by providing financial assistance to farmers, but it has now evolved to include services such as bookkeeping, marketing, and web lead creation. Farmers, according to Miller, are undercapitalized and understaffed.
“Usually, it’s two partners and a few seasonal workers.” It’s a great challenge for them to accomplish everything for their business and farm at the same time,” he says.
That is also the rationale behind Steward’s nationwide network of farmers. The company establishes a mentor connection by combining experienced farmers with young or new operators, in which a partner helps think about the business differently in order to design a financial structure that works.
“Our goal is to create a simple platform that assists farmers and connects them with investors.” I believe there is a lot of negative news about agriculture that poses a threat to traditional farming. Every day, though, we witness farmers who are making a good difference and prospering despite difficulties,” Miller says.