Winner of two awards, Iroquois Valley Farmland REIT's Rooted in Regeneration (RNR) Series 2 impact pool provides financing for socially disadvantaged farmers in the US transitioning to organic, regenerative practices.

Iroquois Valley, a farmland finance company, found that Black, Indigenous and People of Colour (BIPOC) farmers often face significant barriers to acquiring financing for land, despite overwhelmingly using organic and regenerative practices. In response, the company launched an investment product that uses a portion of the earnings to reduce the amount of mortgage interest for eligible farmers – in a bid to help scale up BIPOC land ownership.

Following a successful first iteration of the note, it launched the second version in May with a streamlined investment process. This included decreasing the number of terms available to investors to a singular five-year term for standard and catalytic tranches, in a bid to make the subscription agreement process smoother.

Iroquois Valley said this "means more capital can go into the pool, thus providing more funds for more socially disadvantaged farmers".

To date, four farms across the US have benefitted from the mortgage discount offered under the RNR notes. This includes a farm run by a US Navy veteran focused on diversified livestock products and habitat restoration, and an agro-forestry-based regenerative poultry farm. 

"By reimagining underwriting standards and creating a capital structure that reduces borrowing costs, we're helping BIPOC farmers reclaim agency, improve environmental outcomes, and strengthen local food systems", Iroquois Valley said in its submission.

Under the current structure, investors who have invested in the RNR note offerings receive a fixed return on a promissory note.

Judges of Environmental Finance's IMPACT Investment Awards praised the fund for its innovative and impactful approach, despite being of a relatively small scale.