Consistency: Cheap and Effective

Investors are responding to the need for niche quality attributes to be delivered intact to markets, over and above the current grading standards for grain.

The ‘missing middle’ is an investor term for the chasm that exists between small/transparent and large/opaque value chains, and opportunities for bringing the market closer to the farmgate. Margins are in there to be earned, but it can also be a minefield, for example due to the black market in local meat.

Investment theses in regenerative agriculture have traditionally landed on farmland and tech… the former because of its long-term tendency to steadily appreciate, and the latter for its unicorn potential. Neither feels steady any longer, perhaps because of spectacular write-downs and business failures taking place across agtech, and/or with new models like Fractal moving the goalposts in farmland finance.

Despite the risks and challenges, new investment theses underwriting Terra Regenerative Capital enable it to get serious about recreating grain handling infrastructure. To hear how it’s going, tune in to this week’s Modern Acre podcast: always thoughtful and informative, the story told here by Mad Agriculture’s Phil Taylor reaches a new level of interesting.