►
From YouTube: Community Collateral Onboarding Call: January 6, 2021
Description
Introduction: @juanjuan
Presentation 1 (0:01:00): People's Company
Agenda and Discussion:
https://forum.makerdao.com/t/collateral-onboarding-call-22-peoples-company-wednesday-january-6th-18-00-utc/5869
Governance Forum:
https://forum.makerdao.com/
Disclaimer: These calls and the summaries are produced and hosted by MakerDAO community members. Content produced by the community are not the statements or views of the Maker Foundation.
A
B
Okay,
thanks
juan
and
thanks
everybody
for
joining
and
listening
to
our
story
and
proposal.
I
will
kick
off
a
little
bit
here
and
dave
has
control
of
the
screen.
But
let
me
start
at
dave
your
mind,
flipping
the
to
the
next
page
introduce
who
will
be
presenting
from
our
our
team
first
and
foremost,
steve
brewer
who's
on.
He
is
a
president
of
people's
company
and
we'll
make
some
introductory
comments
about
the
history
of
people's
company,
its
business
lines
and
expertise
and
farmland
transactions
from
acquisitions
through
dispositions
and
everything
in
between.
B
We
also
have
bruce
sharrick
he's
a
strategic
advisor
to
people's
company
and
also
more
notably,
he's
a
professor
of
agricultural
economics
and
the
director
of
the
tia
piaa
center
for
farmland,
research
at
the
university
of
illinois
and
is
a
leading
expert
on
farmland
as
an
investment
asset
class,
and
provides
some
comments
regarding
its
characteristics.
In
that
sense,
we
also.
B
He's
a
managing
partner
of
alternative
equity
advisors.
He
is
laea
as
we
call
it
is
an
affiliate
of
people's
company
and
the
nd
that
is
in
charge
or
manages
a
business
where
we
manage
assets,
farmland
assets
on
behalf
of
third-party
investors
and
in
our
own
capital,
and
then
myself,
I'm
also
with
aea,
but
also
had
capital
advisors
ag.
Capital
advisors
is
another
affiliate
of
people's
company.
B
Our
business
is
helping
farmers
or
landowners
obtain
financing
for
their
farm
real
estate.
So
I
get
involved
in
that
and
also
an
aea
in
the
in
the
in
by
raising
capital,
finding
capital
partners
to
work
with
to
bring
capital
into
our
our
business
lines.
So
this
fits
right
in
with
what
what
we
want
to
do
this
financing
law.
B
So,
just
as
a
quick
summary
of
you
know
what
what
we've
proposed
later
on
after
everybody's
presented
about
the
asset
class
I'll
come
back
and
talk
about
the
more
specific
terms.
But
generally,
the
proposal
is
to
issue
drop,
tokens
and
tin
tokens
to
finance
the
purchase
of
high
quality
farmland
in
the
u.s.
B
Centrifuge
has
helped
us
structure
the
transaction.
They
also
provide
the
services
to
convert
the
the
land
titles
as
we
purchase
them
into
nfts,
non-fungible
tokens
and
then
to
issue
the
and
to
lock
those
tokens
into
the
nfts
into
their
tin
lake
platform
and
then
issue
the
drop
in
tokens
collateralized
by
those
nfts.
B
In
general,
we
would
buy
farmland
assets
with
average
values
of
between
500
000
2
million
dollars.
So
it
should
be
a
pretty
diverse
pool
of
high
quality
farmland
that
we
do
finance
and
before
steve
jumps.
In
with
more
detail
this,
this
proposal
has
been
teed
up
as
people's
company
as
a
sponsored
group,
but
just
to
emphasize
that
ada
is
really
the
the
group
led
by
dave
and
his
team.
B
C
Yeah
thanks
mark
everybody.
Can
you
hear
me
so
hey?
I
appreciate
everybody's
time
today
and
and
interest
in
farmland.
Just
I
thought
before
I
gave
a
little
context
on
who
people's
company
is.
I
could
just
give
a
little
background
on
myself.
I'm
a
iowa
farm
kid,
my
dad
and
brother
grow
corn
and
soybeans
just
south
of
des
moines,
and
I
grew
up
farming.
My
my
grandfather
had
the
fort
new
holland
farm
equipment
dealership.
C
My
folks
were
pioneer
seed
corn
dealers
for
23
years
and
so
grew
up
very
much
in
agriculture
and
have
had
a
passion
for
agriculture.
For
a
long
time,
I
went
to
the
university
of
northern
iowa
and
graduated
in
2003
from
that
program,
and
people's
company
had
gone
through
a
transition
and
ownership
transition
back
in
2002,
and
so
I
came
on
board
during
that
that
transition
of
ownership,
some
some
background
on
people's
company
people's
company
actually
started
out
as
part
of
the
people's
bank
in
indianola
iowa.
C
C
When
I,
when
I
first
came
on
board,
we've
still
got
our
offices
here
in
central
iowa,
but
we've
since
expanded
into
some
of
the
other
major
agricultural
regions
throughout
the
u.s.
So
we've
got
offices
up
in
the
pacific,
northwest
in
walla
walla,
a
couple
offices
in
california
and
fresno
and
san
diego.
C
Last
year
we
just
opened
an
office
up
in
the
mississippi
delta
down
in
jonesboro.
We've
got
an
office
that
we
acquired
last
year
in
omaha
in
that
nebraska
region,
and
then
we've
got
offices
up
in
michigan
and
illinois
as
well,
and
so
our
firm
that
we
work
on
anything
that
involves
a
land
transaction.
So
we
do
brokerage
work,
appraisal,
work
for
management
work
and
then
dave
will
get
into
some
of
the
work
that
we
do
on
the
investment
side,
which
is
pretty
unique.
C
So
today
we
have
about
120
folks
in
our
firm
on
the
brokerage
side,
will
handle
around
500
million
dollars
worth
of
brokerage
transactional
work
on
an
annual
basis,
and
that
comes
in
the
form
of
listings
and
auctions
and
and
mark
wanted
me
to
touch
on
our
auction
business.
When
we,
when
we
get
hired
to
sell
a
farm
a
lot
of
times,
it's
states
or
families
that
are
going
through
some
sort
of
transition
and
when
we
handle
that
work.
C
Usually
that
process
is
around
a
90-day
process
from
when
we
get
hired
to
sell
a
farm
to
when
we
actually
have
a
closing
on
the
appraisal
side.
We
do
a
lot
of
work,
dave
and
bruce
will
talk
about
nacreef,
which
is
a
farmland
index
that
institutional
investors
use.
We
do
a
lot
of
appraisal
work
for
institutional
investors
on
their
annual
evaluations
for
their
portfolios,
to
help
them
in
their
how
they
compare
themselves
against
their
peers
relative
to
how
they
do
in
the
asset
class
and
then
on
the
farm
management
side.
C
A
D
A
E
Good
dave,
you
want
to
move
forward
a
slide
there.
We
go
hi
everyone
a
little
bit
of
this
would
be
repeat,
but
just
I
think
it's
really
important
to
get
a
sense
for
the
scale
of
the
asset
class
and
people
are
sometimes
a
little
bit
shocked
to
realize
it's
a
three
trillion
dollar
asset
class
about
2.6
trillion
of
that
in
real
estate.
E
So
it's
not
small.
It
does
tend
to
be
fairly
atomistically
held
local
market
conditions,
always
dominate
very
low
debt.
At
this
point,
though,
very
under
levered,
compared
to
most
other
sectors
and
again,
I'm
going
to
go
at
a
super
high
level
pace,
just
to
kind
of
do
a
stake
in
the
ground
around
the
asset
class
and
then
use
that
as
a
way
of
then
addressing
other
assets.
E
E
These
are
very
regionalized
effects,
but
no
matter
how
you
look
at
it
when
you
go
back
historically,
and
we
just
have
only
one
slide
in
the
middle
of
this.
For
the
interest
of
time,
a
farmland
has
had
a
really
pretty
high
alpha.
It's
a
little
hard
to
access,
though,
because
it's
a
really
thinly
traded
market
really
hard
to
capture.
If
you
don't
have
kind
of
an
acquisition
and
a
disposition
platform
in
place.
E
Fairly
low
beta
and
always
a
positive
correlation
with
inflation,
no
matter
how
we've
sliced
up
time
and
even
when
inflation
is
coming
down,
the
correlations
positive
with
it.
But
you
that
turns
out
to
be
a
an
asset
that
you'd
like
to
have
kind
of
exposure
to
in
the
in
a
period
of
time
where
there's
either
inflation
or
inflation
uncertainty
and
again,
given
the
amount
of
stimulus,
that's
been
pushed
out
and
expected,
and
the
fed's
recent
comments
about
going
toward
more
empirical
model
and
kind
of
targeting
a
higher
level
of
inflation.
E
This
bodes
quite
well
for
real
assets
in
general,
but
in
particular
for
assets
like
ag
that
don't
depreciate
we've
seen
a
lot
of
folks
trying
to
I'll
use.
You
know,
retail
as
a
verb.
We're
trying
to
retail
the
asset
class
find
ways
to
do
it,
and
it
turns
out
that
some
form
of
distributed
ownership
or
distributed
finance
or
there's
lots
of
versions
of
this.
E
We
have
and
just
real
quick
background
on
some
of
the
things
I've
done
when
nakrief
was
formed.
We
helped
my
group
at
u
of.
I
helped
put
that
together
back
in
the
1990s,
when
there
really
wasn't
any
other
index
that
you
could
look
at
for
institutionally
owned
and
managed
on
purpose.
We
call
it
our
return
seeking
capital
and
so
nate
creef
is
quite
a
ways
down
in
this
list.
The
top
one
is
all
u.s
farmland,
individual
states,
then
nate
creek,
total
farmland
and
then
s
p
gold
in
the
cpi
as
a
major
inflation.
E
So
thank
you
and
dave.
This
is
just.
This
is
a
fun
one,
because
you
can
say
how
is
farmland
done
and
there
aren't
that
many
bumps
down,
if
you
will
and
they
creep
again,
which
is
the
professionally
managed-
tends
to
be
a
little
bit
smoother
than
individual
states,
but
just
kind
of
a
cool
way
to
see
it
actually
has
done
extremely
well.
The
problem
is,
a
lot
of
us
didn't
own
farmland
in
1990
would
wish
we
had
so
go
ahead.
Dave.
E
Typically,
you
have
a
very
fixed
annual
income
associated
with
farmland,
so
think
of
it
as
the
cash
rent
rate
and
the
cash
rate
doesn't
move
much
with
the
underlying
commodity
prices.
In
fact,
almost
not
at
all,
so
you
end
up
with
kind
of
like
a
fixed
coupon
and
then
the
remainder
is
appreciation
and
it's
pretty
rare
that
appreciation
or
depreciation
gets
bigger
in
a
year
than
the
annual
income.
So
it's
a
pretty
easy
asset
to
manage.
If
you
have
scale
enough
to
have
access
to
it,
I
think
that's
just
about
one
more
slide
yeah.
E
This
is
the
correlation
by
holding
period,
because
this
is
a
little
counter
to.
Perhaps
the
purpose
of
today's
call,
but
farmland
does
tend
to
be
held
for
a
very
long
period
of
time
when
it's
held
by
an
individual
tends
to
be
held
for
a
shorter
period
of
time
when
it's
held
by
an
institution
except
a
few
institutions
that
are
either
pension
funds
or
churches,
do
tend
to
hold
it
much
longer,
but
the
longer
you
hold
it,
the
higher
the
correlation
is
with
the
inflation
side.
E
So
one
of
the
last
questions
we
kind
of
are
you
know,
working
through
and
carefully
being
aware
of
and
presenting
to
people
is.
The
the
term
structure,
of
course,
has
been
just
stapled
to
the
floor.
When
we
had
the
housing
crisis,
we
had
something
similar
to
what
has
happened
generally
this
year
and
since
we've
you
know,
come
back
out
of
the
period
of
normalization
and
back
into
a
period
of
interest
rate
management,
but
around
the
world.
E
E
E
Subsidies
are
reasonably
large
part
of
the
income
to
agriculture
right
now,
but
they
are
moving
increasingly
toward
counter-cyclical
controlled
measures,
so
crop
insurance
is
a
big
part
of
that,
and
crop
insurance
pays
more
when
prices
are
low
or
yields
and
prices
in
combination
don't
generate
much
farm
income.
The
last
three
years
we've
moved
away
from
systemic
toward
ad
hoc
payments,
but
one
of
the
best
slides-
and
I
should
have
put
this
into
the
deck.
E
Actually,
if
you
go
back
through
time
and
look
at
the
party
control
and
the
amount
of
agricultural
support,
there's
just
no
correlation,
the
conservation
title
will
probably
be
strengthened
if
what's
been
signaled
on
the
incoming
administration
gets
enacted.
So
that
would
be
policy
frag
crop
insurance
is
definitely
not
going
away.
It's
probably
a
12
billion,
with
a
12
billion
dollar
title
with
about
120
in
liability.
E
What
would
go
away
would
be
the
mfp
payments
or
things
related
to
coronavirus,
hopefully
soon
and
chronovirus
support
payments
have
probably
been
just
a
little
bit
more
than
the
loss
of
revenue
from
the
same
commodities
and
mfp
payments
have
been
definitely
a
bit
less
than
the
reduction
in
revenue
from
the
lost
trade
arrangements,
but
those
seem
to
be
coming
back.
Strong
and
prices
are
really
strong
now.
E
So
one
of
the
funny
kind
of
I
guess
empirical
facts
is
that
farm
support
payments
have
become
increasingly
counter
cyclical,
so
they
tend
to
fill
in
most
when
farm
incomes
would
otherwise
be
lowest,
but
they've
also
been
segmented
by
commodity
and
producer
group.
Even
more
so.
The
total
has
actually
grown
through
time
and
nobody
really
sees
much
of
a
reversal
for
that
and
in
fact,
in
the
short
term,
the
stimulus
payments
and
things
targeting
the
food
sector
are
probably
going
to
increase.
E
E
It's
hard
to
fully
see
whether
the
benefits
from
all
of
that
will
be
greater
or
smaller
than
probably
some
increased
regulatory
burdens
from
environmental
regulations
going
forward
for
agriculture.
But
on
balance
it's
pretty
strong
and
the
number
one
positive
is
that
around
the
world
we
have
higher
food
inflation
than
almost
any
other
component
of
inflation,
and
demand
for
feed
grains
in
particular
is
being
multiplied
up
by
the
world's
demand
for
meat,
and
that's
that's
a
very
long-term
trade
2050
or
beyond.
Probably.
E
D
D
E
And
stephen
mark,
you
may
want
to
comment
more,
but
both
are
possible
from
my
perspective
in
terms
of
asset
acquisition
and
steve,
you
can
talk.
If
you
want
about
magma
and
mark,
you
can
talk
about
just
the
the
process
of
putting
a
purchase
into
an
spv,
but
I
think
it's
it's
an
it's
a
because
it's
real
asset
and
a
title
follows
it
around.
You
have
some
restrictions,
but
not
many
actually
getting
it
retailed
would
be
a
really
good
thing.
C
Yeah,
I
I
could
dive
into
that,
but
I
why
don't
we?
Why
don't
we
dave?
Have
you
do
your
remarks
and
then
I
think
that'll
clarify
some
of
these
questions
and
then
and
then
at
the
end,
we
could
get
into
kind
of
how
you
could
structure
this,
because
I
think
we
spent
a
fair
amount
of
time
with
jason
kind
of
thinking
through
how
how
we
could
present
this
to
you
today.
F
Yeah
perfect,
so
I'm
going
to
walk
through
a
little
bit
on
how
this
business
functions
and
what
are
the
the
key
strategic
drivers
that
we
work
through
and
look
at.
You
know
one
real,
quick
comment
back
to
to
what
bruce's
answer
on
the
political
risk.
You
know
it's
it's
important
to
clarify
so
that
the
crop
insurance
program
that
bruce
mentioned
that
is
not
not
politically
risky
right.
F
It's
it's
a
solid
program,
that's
not
going
away
that
creates
a
minimum
annual
revenue
floor
for
u.s
farming
operations
and
so
that
what
that
does
to
the
asset
class.
It's
incredibly
unique.
We
do
not
see
an
investment
grade
asset
class
elsewhere
around
the
world,
where
there's
a
federally
subsidized
annual
minimum
revenue
guarantee
program
that
that
really
does
have
substantial
impact
on
the
stability
and
and
how
the
asset
class
works.
F
So
we
really
work
on
this
notion
of
direct
ownership.
Separate
account
right.
We
want
to
work
with
capital
resources
that
want
to
directly
own
farmland,
and
this
is
a
bit
of
a
niche
in
the
marketplace-
there's
a
number
of
very
effective
large-scale
funds,
institutional
types
of
folks
and
there's
a
growing
segment
of
high
net
worth
individuals,
or
even
down,
as
bruce
mentioned
talking
about
some
of
the
fractional
ownership
platforms
that
are
out
there.
Now.
F
What
we
call
that
retail
investor
that
wants
to
have
their
hands
directly
on
farmland
and
be
a
direct
owner
of
farmland
and
we're
structuring
this
business
to
facilitate
that,
so
we're
able
we
put
together
a
platform
that
can
can
offer
all
of
the
deal
sourcing,
all
of
the
diligence,
the
asset
management
and
then
ultimately
through
disposition,
and
that's
where
the
relationship
with
people's
company
gets
really
important
right.
That
national
scale
network
that
map
that
steve
showed
that
creates
incredible
deal
flow.
It
creates
incredible
local
knowledge.
It
was
mentioned
earlier
too.
F
We
also
leverage
some
of
the
management
platform
elements
that
steve
talked
about
and
we'll
get
into
that
just
a
little
bit
more
we're
pretty
aggressive
in
the
in
the
tech
side,
too.
Information
flow
around
decision
making
on
these
assets
is
moving
very,
very
quickly
and
and
we're
trying
to
take
advantage
of
that.
F
So
we
are
a
full
service
shop,
so
we
can
sit
down
with
capital
sources
and
start
to
think
about
their
goals
and
objectives
and
create
that
portfolio
objective
in
that
portfolio
strategy
kind
of
outcome
and
perspective,
and
then
we
move
into
building
those
sourcing
strategies
and
we've
we're
fully
resourced
within
our
shop
and
our
team
to
be
able
to
find
and
pull
the
assets
in
that
fit
into
that
portfolio.
Objective.
F
F
So,
let's
get
into
some
opportunities
and
bruce
characterized
the
asset
class
really
well
from
some
of
the
raw
economic
standpoints.
There's
a
couple
other
characteristics
that
I
think
are
are
kind
of
important
to
understand.
So
the
u.s
farmland
base
is
really
dominated
by
the
three
big
commodity
crops,
corn,
soybeans
and
wheat.
F
We
have
to
pay
attention
to
those
three
commodities
and
it's
a
very
robust
system.
U.S
farmland,
particularly
in
those
three
commodities,
literally,
has
zero
vacancy.
This
land
is
farmed
every
year
and
farmers
are
competing
aggressively
to
be
able
to
get
access
to
these
acres.
They're
important,
they're,
stable.
F
It's
a
part
of
everything
we
need
to
consider,
there's
also
when
you
start
to
get
into
some
of
the
other
cropping
systems,
some
unique
opportunities
that
start
to
emerge
and
we'll
talk
just
a
little
bit
more
about
that.
The
the
performance
chart
is
sort
of
a
mirror
to
what
bruce
showed
earlier
in
terms
of
what
happens
with
some
capital
put
in
in
1990,
again
really
impressive
on
the
whole.
F
So
we
spend
a
lot
of
time,
energy
and
resources
trying
to
make
sure
we're
understanding
where
the
trends
and
opportunities
in
the
asset
class
are
and
how
we
can
start
to
deliver
a
platform
that
can
take
advantage
of
them.
One
that's
really
important
is
there
is
a
clear
directive
from
consumers
where
their
preferences
are
shifting
to
understanding
their
food
better.
Okay,
this
comes
in
a
number
of
different
forms
and
fashions.
Certainly
a
easy
to
monetize
version
is
organic
right.
F
There's
a
clear
price
premium
in
the
marketplace:
that's
it's
reasonably
efficient,
particularly
within
some
crops
and
some
supply
chains.
At
a
two
to
three
x
type
of
premium,
there's
also
emerging
pathways
in
traceability
and
just
that
general
connection
to
how
was
food
produced
and
the
consumer
wanting
to
understand
where
it
came
from.
This
creates
an
opportunity
for
additional
revenue,
and
it's
really
important
this
notion
of
financialization
and
bruce
hit
on
the
low
debt
within
the
asset
class.
F
So
we
have
this
dynamic,
where
consumers
are
really
wanting
a
deeper,
more
deliberate
look
at
these
imports,
they're
willing
to
pay
more
and
we're
not
providing
enough
with
our
production
in
the
u.s.
This
creates
an
interesting
runway
of
we
think
10
plus
years,
where
the
organic
premiums
that
are
in
the
marketplace
right
now,
roughly
2
to
3x
on
the
crop
production
side
are
likely
to
be
there
and
perhaps
even
have
a
little
bit
of
room
for
growth.
So
we
think
this
this
particular
trend
is,
is
pretty
interesting.
F
F
F
F
One
thing
that
I
found
really
interesting
and
this
kind
of
fits
back
to
that
consumer-driven
trend.
If
you
look
at
the
quote-unquote
smart
money,
the
vc
money
working
in
that
agri-food
tech,
kind
of
supply
chain
and
investment
arena,
I've
always
typically
thought
about
that
in
a
very
traditional
production
technology
context.
F
So
a
little
bit
more
about
our
approach.
So
we've
got
a
heavily
resourced
team
here
in
conjunction
with
the
the
people's
national
network,
creating
that
deal
flow
where
we
work
across
this
spectrum,
starting
with
individual
capital
sources
and
understanding
the
goals
and
objectives
on
how
they
define
success.
So
we
can
create
that
design
of
the
portfolio.
F
F
That's
where
a
lot
of
our
more
advanced
data
resources
can
can
come
into
play
and
help
us
out
and
that
robust
business
plan
on
an
annual
basis
and
a
pre-acquisition
basis
when
we
start
to
understand
how
we're
really
going
to
generate
that
net
income
from
the
each
farm,
the
active
asset,
management
and
farm
management
again
a
key
piece
and
then
all
of
the
resources
that
steve
talked
about
earlier,
creating
really
excellent
disposition
outcomes.
When
that
is
part
of
the
strategy,
we
certainly
have
clients
that
have
no
intention
of
even
thinking
about
disposition.
F
So
there's
a
number
of
different
approaches
to
managing
the
farmland.
A
lot
of
those
primary
commodities
that
dominate
the
acreage
that
we
looked
at
earlier
are
going
to
be
operated
under
just
a
standard,
fixed
cash
rent
lease.
This
is
that
clipping
the
coupon
very
stable,
a
lot
of
competition
for
for
land.
Under
that
structure,
we
like
to
put
some
flex
terms
around
that
that
can
create
some
upside
for
the
landowner
when
we
hit
a
good
performance
on
a
given
year.
F
Crop
share
leases
where
the
landowner
is
investing
in
the
crop,
alongside
an
operator
less
common
now
than
they
were
several
decades
ago.
They
are
still
out
there
in
certain
cases,
and
then
we
have
a
platform.
We
call
direct
operations
where
for
investors
for
capital
sources
that
would
like
to
chase
them
upside
with
a
little
bit
of
commodity
exposure.
F
You
know
the
the
business
planning
I've
emphasized
that
several
times
that
is
really
key
for
being
able
to
meet
the
outcomes
really
drawing
it
out
and
understanding
where
we're
heading.
We've
built
out
a
really
robust
network
of
operators
and
partners
regionally
and
locally
in
the
areas
that
that
we're
operating-
that's
that's
very
important
and-
and
I
mentioned
the
technology
side-
what's
what's
been
really
interesting?
Is
we
can
get
incredible
data
flow?
Well,
the
picture
to
the
upper
right.
F
There
is
an
example
of
a
farm
that
we
built
a
direct
operations
model
with
a
client.
It's
a
family
office,
it's
a
large
3000,
acre
organic
farm
in
the
pacific
northwest
and
that's
a
live
screen
capture
when
I
can
actually
remote
into
the
monitor
on
a
tractor
in
order
to
see
what's
going
on
from
my
desk
anywhere
on
a
connected
device
in
the
world,
so
that
data
flow
is
really
incredible.
F
The
sustainability
piece
we
are
signatories
on
the
principles
for
responsible
investment,
that's
important
for
us
to
communicate.
You
know
the
value
system
there
and
we're
engaged
in
the
leading
harvest
initiative
which
has
been
built
by
it
was
a
group
of
eight
of
the
largest
institutional
landowners
in
the
u.s.
The
the
really
interesting
part
about
this
sustainability
standard
that
we
believe
in-
and
we
were
part
of
the
group
that
built
this
steve-
was
a
co-chair
with
the
ceo
of
hancock
natural
resources
group
is.
This
is
focused
on
land
owners.
F
The
reality
is,
is
60
plus
of
the
land
is
operated
on
a
short-term
lease
one
year,
two
year,
three
years
and
it's
very
difficult
for
a
farmer
to
make
some
of
the
investments
that
have
long-term
outcomes
and
so
a
standard
that's
focused
on
the
landowner.
We
believe
is
the
right
approach,
and
this
is
a
third-party
independent
auditing.
F
I
mentioned
earlier
long-term
strategies:
generational
wealth
transfer,
types
of
ownership
of
farmland,
the
asset
class
absolutely
works
on
that
front,
there's
a
a
number
of
medium-term
strategies,
I
think
kind
of
the
10-year
basis,
plus
or
minus,
where
a
lot
of
the
funds
will
work
in
this
kind
of
a
strategy
where
you
get
high
quality
assets.
You
clip
your
coupon.
F
We
also
see,
through
our
network
and
the
number
of
deals
that
we
process
some
more
short
term,
what
we
call
kind
of
fix
and
flip
right
and
there's
there's
a
couple
of
different
opportunities
here.
Perhaps
there's
some
base
level
of
improvements
that
enhance
the
farm
that
think
about
water
management
as
a
good
example,
whether
that's
tile
in
certain
areas,
where
there's
a
lot
of
rainfall,
we
need
to
get
rid
of
water,
whether
that's
irrigation
systems
and
enhancements.
F
Sometimes
it's
just
more
cosmetic
cleanups
that
can
add
some
acres
things
of
that
nature,
where
we
can
find
an
asset
that
the
market
isn't
responding
well
to,
but
we
can
quickly
see
a
path
to
be
able
to
create
excellent
value.
Another
one
of
these
short-term
opportunities
is
where
we
can
do
some
things
that
enhance
net
income
an
example.
There
would
be
an
organic
transition,
so
if
we
can
take
an
asset,
that's
well
suited
for
organic
production,
carry
it
through
the
transition.
F
Now
we've
got
an
asset
that
has
significantly
higher
net
annual
net
income
potential
for
a
landowner,
and
that
can
create
some
additional
value,
also
a
couple
of
really
quick
case
studies
to
to
work
through
just
to
give
some
examples
here.
This
is
a
asset
here
in
in
iowa's,
107
acres.
This
would
be
a
pretty
classic
kind,
of
example,
of
the
kind
of
asset
that
we
would
target
in
this
partnership.
F
It's
productive
soil,
good
soil,
but
it
wasn't
cared
for
very
well,
so
it
didn't
look
good.
It
didn't
have
some
of
the
curb
appeal
elements
and
there
was
a
need
for
some
drainage
management,
some
additional
tile
in
order
to
enhance
the
productivity,
so
we're
able
to
get
this
farm
at
a
somewhat
below
market
price,
make
the
improvements
subsequently
then
get
a
better
lease
arrangement
through
the
higher
productivity,
higher
net
income
to
the
investor
and
then
quickly
turn
it
back
into
the
market.
F
F
This
is
an
organic
transition
opportunity.
It's
ground,
that's
coming
out
of
the
conservation
reserve
program
in
far
northwest
minnesota.
There's
a
couple
of
interesting
things.
When
you
look
at
crp,
it
gets
the
connotation
of
being
lower
quality
ground
is
why
it
was
originally
enrolled,
and
that
definitely
is
the
case
in
a
lot
of
circumstances.
F
When
you
look
at
the
data
there's
a
couple
of
areas
in
the
country
where,
in
that
20
to
30
year
ago,
range,
which
is
the
typical
crp
program
contract,
the
crp
rental
rates
paid
by
the
government
were
disproportionately
high
relative
to
the
net
income
from
a
row
crop
production
standpoint.
Those
two
areas
are
actually
northwest
minnesota
and
southeast
washington
that
we've
identified,
and
so
what
we
see
is
some
fairly
good
quality
farmland.
That's
coming
out
of
crp
and
we've
got
different
dynamics
now,
where
we
can
actually
create
better
outcomes
with
that
back
and
row.
F
Crop
production
versus
ongoing
enrollment
in
crp,
one
of
the
other
upsides
coming
out
of
crp
there's
been
no
non-organic
treatments
for
a
number
of
years.
In
most
cases,
that
means
we
can
roll
it
directly
into
an
organically
certified
farm.
That's
what
we've
done
on
this
roughly
1200
acres
up
in
northwest
minnesota-
and
you
know,
there's
there's
processes
to
go
through
and
challenges
to
work
through
in
bringing
a
farm
out
of
crp,
but
these
are
going
to
be
very
profitable
and
and
they're
above
market
yielding
from
an
investment
standpoint.
F
Really
quickly
before
I
turn
it
back,
well
ask
some
for
any
questions
and
turn
it
back
to
mark
to
talk
a
little
bit
more
about
terms.
So
when
we
think
about
some
primary
applications
of
the
facility
we've
we've
hit
on
this
right,
so
we'd
want
to
focus
on
those
primary
agricultural
regions.
We
define
that
by
having
robust
crop
marketing
available,
we're
not
stranded
in
being
able
to
get
value
out
of
what
we
produce.
F
There's
some
metrics.
This
might
not
be
exactly
the
right
one,
but
you
know:
50
percent
of
the
land
within
a
50-mile
radius
is
in
row
crop
production,
that's
a
metric
that
says:
hey
we're
going
to
have
competitive
farmers,
we're
going
to
have
a
lot
of
robustness
in
added
liquidity,
potentially
for
that
asset
it
makes
it
a
strong
candidate.
It's
kind
of
a
rough
metric
that
we
can
look
at.
F
You
know
we'll
focus
on
these
value-added
acquisitions,
where
there's
that
clear
path
to
either
creating
some
improvements
or
those
net
income
enhancements
that
can
turn
into
added
value
pretty
quickly
and
relative
to
farmland
ownership,
which
is
often
many
decades.
We're
looking
at
shorter
term
holds
right.
That's
that's!
Where
we
see
the
opportunity
really
driving
so
with
that,
is
there
any
questions
for
me
before?
I
turn
it
back
over
to
mark.
B
No,
I
think
we
have
just
a
10
minutes
left,
so
let
me
walk
through
the
terms
fairly
quickly
and
then
give
people
an
opportunity
to
ask
questions
again
and
the
terms
I'll
cover
are
spelled
out
in
the
application.
So
this
will
necessarily
be
new
information,
but
just
trying
to
highlight
what
we
see
is
the
key
elements.
B
So
again,
the
total
amount
of
the
financing
line,
which
is
10
million,
die,
which
would
increase
20
million
die
once
we
deploy
75
percent
or
draw
down
75
percent
of
the
initial
initial
commitment,
the
draws
would
be
done
as
needed
to
acquire
farmlands
farmland.
It
wouldn't
all
be
dispersed
in
one
one
shop,
but
each
farm
we
acquire
you
know
five
hundred
thousand
dollars
a
million
dollars.
We
would,
you
know,
draw
down
the
appropriate
amount
of
of
financing.
B
B
Then
after
it
will
be
variable
really
subject
to
you
know
a
specific
index,
but
just
according
to
whatever
needs.
The
the
drop
holders
have,
which
is
a
little
unusual
from
a
financing
perspective.
They'll
also
have
the
option
to
put
their
drop
to
us
where
they
can
request
to
be
redeemed.
That
is
also
after
the
first
six
months
and
there's
a
90-day
notice
period
for
that,
so
that
90
days
is
really
the
minimum
amount
we
would
need.
B
B
B
Usually
we
might
be
able
to
get
up
to
80
moment
of
value,
but
it
really
makes
this
attractive
to
us
and
really
offsets
other
aspects
of
the
financing,
which
is
the
variable
rate
and
the
put
option
that
that
comes
along
and
embedded
in
the
structure
too.
So
I
think,
a
little
bit
of
give
and
take
and
balancing
out
of
those
two
of
those
two
matters
in
our
perspective.
H
D
C
B
D
G
G
D
G
G
G
E
So
that
may
be
a
kind
of
a
teaser
to
another
question,
but
solvency
and
liquidity
have
liquidity,
has
dried
up
a
bit.
Solvency
has
not
much
if
you
look
at
it
as
basically
the
equity
share
over
top,
but
a
point
that
you
may
have
been
heading
toward
is
sort
of
lost
given
to
fault
in
ag
has
been
shockingly
low
or
almost
close
to
zero.
E
So
quite
often,
on
the
financial
side,
when
the
farmer
runs
out
of
space
runs
out
of
headroom,
they
really
work
hard
to
protect
their
equity
on
the
way
out,
the
last
little
sliver
of
it.
And
so
again
there
has
been
on
the
what
you
would
think
of
as
working
capital
side
a
bit
of
a
compression
the
last
three
years,
but
on
the
solvency
side,
it's
actually
about
the
same
headroom
that
we
used
to
have
and
still
shockingly
high
mid
to
high
80s
percent
equity
in
the
sector.
G
E
It's
a
little
bit
of
a
paradox,
because
in
2008
that
was
the
beginning
of
the
run-up
in
asset
values
and
debt
didn't
increase
as
much
so
total
equity
in
the
sector
is
up
quite
a
bit
from
2008
2009.
When
you
look
at
the
data
was
kind
of
a
sympathetic
response
to
the
housing
crisis,
where
we
had
very
little
transactional
volume
in
ag
and
so
there's
a
little
bit
of
a
there's,
only
one
blip
and
it's
2009.
E
I
Maybe
just
to
answer
the
question
of
advent
about
the
two
percent
interest
rate,
so
the
proposal
of
people
and
refuge
is
to
convert
long
maturity
assets.
Obviously,
you
don't
buy
and
sell
farmlands
every
day
to
something
that
is
a
short
term
or
viable
term
maturity,
and
there
is
the
put
option,
which
is
obviously
costly
as
well,
and
the
last
part
is
a
rate
which
we
can
fix
as
much
as
as
low
as
we
want
after
six
months.
I
Obviously,
there
is
some
competitive
pressure
to
not
fix
the
rate
at,
let's
say
10
percent,
because
if
we
put
the
rate
at
10
percent,
most
likely
people
will
refinance
refinance
elsewhere.
So
this
is
still
something
we
are
in
discussion
to
find
out.
What
are
the
terms?
We
really
need
to
find
the
right
balance
between
the
interest
rate
and
maker
protections
and
for
the
speed.
Currently,
we
are
still
waiting
on
the
oracle
teams
to
get
the
first
sacrifice
asset
listed
on
the
platform,
so
that
should
be
quick
as
well.
I
Yeah
yeah,
so
the
issue
with
the
farmlands
is
that
those
are
quite
safe
assets
and
sadly,
in
the
us,
as
a
interest
rate
on
the
treasuries
are
quite
low
and
getting
lower
and
lower,
and
that's
just
the
business
other
investment.
We
will
probably
make
on
new
silver
and
consult
right,
have
higher
yields,
bigger
interest
rate,
but
obviously
there's
a
little
bit
more
risk
and
it's
more.
I
A
I
I
G
F
Who
wants
first
crack
at
that
one?
We
we
definitely.
We
definitely
see
aggregation
of
farming
operations
and
larger
operations
emerging.
This
actually
creates
another
really
interesting
opportunity
for
farmland
investment
capital,
because
a
lot
of
these
operations
are
trying
to
focus
their
working
capital
on
actual
operations
as
opposed
to
just
the
farmland.
So
you
will
continue
to
see
the
pool
of
farmers
operating
the
land
shrink
and
getting
bigger
with
more
acres,
particularly
in
those
big
three
commodities.
G
A
Question
all
right,
so,
let's
let's
call
it
today.
Thank
you.
Mark
steven
dave
from
from
people's
company
for
for
presenting
the
project
very
interesting,
we'll
see
you
guys
in
the
in
the
forum
before
we
leave.
Can
you
can
you
tell
how
people
can
find
more
about
your
project
and
and
where
to
find
you
personally.
B
A
You
should
find
the
link,
so
thank
you
guys
again
for
for
joining.
Thank
you.
Everyone
else
next
week,
we'll
have
the
xdi
team
coming
to
to
well
to
present
the
stake
application,
and
we
also
have
patricio
from
the
pope,
professor,
this
protocol
as
a
special
guest,
so
yeah
join
us
next
week.
At
the
same
time,
if
you
want
to
and
enjoy
the
week
thanks.