This week, Clif Bar & Company launched the Clif Ag Fund, a new
investment fund to help increase the economic resilience of organic farmers in
its supply chain. The fund’s initial investment is into a $10 million program
that could provide up to 80 organic farms with long-term energy cost savings
from hosting on-farm wind turbines.
The Ag Fund’s wind energy program is a partnership between Clif Bar, two of its
major ingredient suppliers and United Wind. The suppliers, Grain Millers
and PURIS™, bring the project a large network of organic oat and pea
farmers, many facing high and steadily rising energy costs from their use of
non-renewable energy sources such as coal and natural gas. United Wind brings
its expertise as a leading one-stop shop for leasing small wind turbines.
In addition to the value of its supplier and farmer networks, Clif Bar is
providing initial seed funding of $500,000 to the wind program, with other
large investors slated to invest the remaining $9.5 million.
“Farming has thin margins, so it’s important to take advantage of opportunities
to reduce costs or improve efficiency,” said Matthew Dillon, senior director
of agricultural policy and programs for Clif Bar. “The goal of the Clif Ag Fund
is to invest in projects that will help our farmers be more economically
resilient in producing organic crops. That benefits farmers, their communities
and Clif Bar.”
Farmers in the wind energy program will lease a small wind turbine from United
Wind that will provide them with their electricity needs at a fixed monthly rate
for 20 to 30 years. They won’t have to pay upfront fees or maintenance costs for
the turbines.
“Farmers will experience lower energy costs from day one,” Dillon said, “and all
of them will avoid rising energy prices that have eaten into their margins and
placed their profitability at risk. What’s more, the installation and
maintenance of the wind turbines on their farms will create skilled jobs.”
The new program will focus on farms in windy Midwestern states such as Iowa,
Minnesota, North Dakota and South Dakota.
“We're excited to pioneer this wind initiative alongside Clif Bar & Company,”
said United Wind CEO Russell Tencer. “It enables their farmers to access
clean, low-cost, distributed wind energy and builds on Clif’s leadership in
sustainability."
Over time, the Clif Ag Fund will pursue a variety of investments on behalf of
organic farmers in its supply chain, ranging from new technologies to
infrastructure development, Dillon said.
“The Clif Ag Fund is unique in its flexibility,” he explained. “We’re set up to
look at any of the challenges facing organic farmers in our supply chain and
craft innovative investment solutions to meet them.”
Clif Bar ’s new Ag Fund builds on the company’s ongoing
commitment to organic farmers
and their communities. Since becoming the first major energy bar maker to use
organic ingredients in 2003, Clif Bar has purchased more than 1 billion pounds
of organic crops and helped support more farmers in making the switch to
organic.
In addition, Clif Bar has become the nation’s largest private funder of organic
research, funding 17 graduate fellowships in organic plant breeding and
committing to raise $10 million to fund endowed chairs in organic plant
breeding
at leading U.S. public universities. Two endowed chairs already have been
funded.
The Ag Fund’s use of wind energy in its initial investment aligns with Clif
Bar’s long history of addressing climate change through innovative business
strategies. In another notable move, last year Clif launched a scholarship
fund
to help college seniors interested in pursuing purposeful careers alleviate
their college debt, which has a considerable effect on whether graduating
students feel they can afford to pursue a career they care about.
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Sustainable Brands Staff
Published Feb 12, 2019 7pm EST / 4pm PST / 12am GMT / 1am CET