3c hapter - Index of

158 Locavesting
Game Plan for Locavestors
As the local food movement grows, small scale food and agriculture
enterprises have an opportunity to expand. But these businesses typically
have a diffi cult time raising capital from banks and traditional
investors. Slow Money is creating innovative new funding strategies
that connect local investors with local food enterprises.
Pros:
• Local food is a growth business. As demand grows for local and sustainably
produced food, the food and agriculture market presents
attractive investment opportunities, particularly in high- growth,
high- margin segments.
• For people who are already buying locally and sustainably grown
products, it is another way to support those producers and share
in their growth.
• Investment in sustainable food and ag companies offer added
returns in the form of benefi ts to the environment, health, and local
communities. A robust local food system contributes to greater food
security and quality, and reduces food miles and reliance on oil.
Cons:
• There are few avenues, at present, for non- accredited investors
to participate in this segment, aside from CSAs and prepaid
subscriptions.
• Sustainable food and agriculture is often, but not always, characterized
by small, artisan producers that cannot easily take advantage
of economies of scale.
• Farming and agriculture can be extremely risky, given the vagaries
of weather, competition from industrial farms, and slim margins.
• Many farmers lack the business savvy necessary to successfully
expand or execute on a growth strategy, so good management is
key to any investment.
The Bottom Line
• Grassroots action at its best.
For More Information:
• Learn more about Slow Money at www.slowmoney.org. Or contact
the organization at info@slowmoney.org.
•
To read and sign the Slow Money principles, visit www.bit.ly/
slowprinciples.