Community investment and CSA’s

Paul Sander-JacksonExecutive Director, Wessex Community Assets

Layers of the CSA

Landowner

Farmer/grower

Customer

Land

Sales and distribution

Farm enterprise

The land

Land

• Ownership providing long term tenure

• High initial cost (SW - £4400 per acre)

• Long term investment• Low risk• Low financial return

(average FBT £150 per acre = 1.4%)

• Social returns

Fordhall Farm

• £ 800,000 invested• Over 8000

members/investors • No financial return on

investment • Is it replicable?

Farm Enterprise

• Investment in the enterprise running the farm – e.g. stock, machinery

• Medium term (5-10 years)

• Some risk• Appropriate financial

return for investors?• Social returns

Tablehurst and Plaw Hatch Farm

• Community investment of over £150,000

• Over 400 member/investors

• Shares of £100 • Direct community

involvement in the farms

Distribution and marketing

• Investment by members in share of annual crop

• Short term – annual investment

• At risk – weather, crop failure

• Finance for those who cannot pay upfront

• Social returns

Community share issues…• Wessex have developed a model for

raising share capital at low cost• This means members of a community

can invest directly in community projects and services

• It is cheap to set up and acceptable to independent financial advisors

What works?• Track record of organisation & people• Clarity of offer• Blended financial, social and

environmental return• Access to suitable target investor

groups• Effective marketing

CSA and community investment – a good fit ?

CSA• Sharing of risk

between grower and customer

• Needs strong loyal customer base

Community investment

• Involves members in sharing financial risks

• People buying in through membership and ownership of organisation

But……

• Do you want democratic ownership and control for a farm?

• How do you allow farmers and growers to make the decisions they need?

• How do you secure long term tenure? Is ownership affordable?

• Double risk if you invest in enterprise and crop share?