INVESTING IN FARMLAND WITH GOOD FARMERS o Dirt

INVESTING IN FARMLAND WITH GOOD FARMERS o Dirt Capital Partners invests private capital in farmland in the Northeast United States, facilitating farmland access and security for sustainable farmers with viable businesses. o Farmers sign a 9 -year lease with a fixed price purchase option after 5 or 6 years, and at the end of the lease term. The goal of each project is transfer of the farm to the farmer. o We work with local partners – land trusts, University extension services, technical service providers, agricultural lenders – to position the project for long-term success.

12 FARMS PURCHASED SINCE 2014 6 Organic Dairy 5 Diversified 1 Small Grains 2, 000 acres total

COMMON PROJECT THEMES o o o Relocate an existing farm to a more secure or larger property Expand a successful operation by acquiring nearby land Transfer a farm to non-family or family successors Conserve when land trusts look to partner with a like-minded organization Transform a farm with infrastructure updates for the next generation’s efficiency

FARMER AND PROJECT CRITERIA Organic practices, certification not required New England, New York, New Jersey $100, 000+ in annual gross revenue projected 2+ years of sales, or prior farm management experience and purchasing an established business o Project acquisitions range roughly $200, 000 -1 M o o

PROJECT PROFILE Moxie Ridge Farm & Creamery Argyle, NY o 45 -Acres of Pasture/Woods, Farmhouse, Outbuildings o Creating a Diversified Livestock, Farmstead Cheese and Agritourism Operation o Purchase and Expansion of an Existing, Operating Business from a Retiring Farmer Couple o Multiple Project Technical Assistance and Financing Partners: Hudson Valley Agribusiness Development Corporation, American Farmland Trust, Grow. NYC, Agricultural Stewardship Association, USDA-FSA

California Farm. Link 12

v California Farm. Link offers training and technical assistance related to land, capital and succession. California Farm. Link links independent farmers and ranchers to the land financing they need for a sustainable future. v A Community Development Financial Institution (CDFI) v Filling the capital gap for farms and ranches in California, with a focus on beginning, immigrant and minority, direct-market and alternative production systems v Initial focus of lending was operating capital; financing for purchase and refinance of land began in 2015 13

CDFI provides structure to: v Pool capital from diverse sources v Mitigate risks traditional lenders don’t have an appetite for v Integrate “development services” for deal development, risk mitigation and servicing over the life of the loan

Farm. Link’s Path to becoming a CDFI § Farmer Education and TA organization founded in 1999 § Through provision of education and TA focused on preparing for financing and loan packaging assistance, learned just how limited the options were for small, beginning and immigrant farmers. § 2005 - 2006 raised $1 million for loan fund § 2006 – 2011 loans underwritten and serviced through Cal Coastal, a local, ag-focused CDFI § 2011 began direct lending § 2013 became Certified CDFI through Dept of Treasury § 2017 $4 million available to lend § 2016 $2. 3 million in loan volume § 2017 $3. 5 million projected in loan volume 15

Farm. Link’s 168 loans have Access to Capital supported more than 75 farmers across California. Impacts include: • 764 jobs sustained and 196 new jobs created • 30% average annual increase in gross business revenue • 10% average annual increase in family income “You guys were literally our only option. You didn’t just lend us money, but you understood our • More than 85% of borrowers perspective, and guided and taught us in the process as well. ” – Farmer-Borrower are certified organic farmers. 16

Financing Criteria 3 years operating experience Gaps Price Adequate Debt Service Coverage Down Payment Unable to secure financing elsewhere Experience Financial Records Deals to Date 17 Purchases (3) • Participating Lenders (3) • Succession (1) • Down Payment Program (2) Refi’s (1) • Conventional Residential Mortgage Succession Risk profile Expansion/Projectionbased

JSM Organics v Diverse organic farm v Started in 2012 by Javier Zamora v Operating on 40 acres across 3 parcels prior to purchase v Direct to consumer and direct to retail markets Property: ALBA’s Triple M Ranch v 195 acres, 60 farmable v Natural Resource & Ag Easement, held by Elkhorn Slough Foundation, conveyed with title v 5 -7 small farmer tenants continued under new ownership 19

Deal Profile v $1. 3 million asking price v Partnerships and Capital Stack Critical to Deal v Capital Stack v FSA Down Payment Program v 5% down v $300, 000 FSA Direct Farm Ownership Loan v $650, 000 Farm. Link FSA Guaranteed Loan v $250, 000 RSF Social Finance Loan v Partnerships v Kitchen Table Advisors v FSA v RSF v ALBA 20