For today’s post, we had the pleasure of speaking with Jayce Hafner, CEO of FarmRaise.
Our discussion centers on sustainable farming practices, regenerative agriculture, the challenges of finding the right investment partner, and emerging themes in the farming space.
Introducing Jayce Hafner
Jayce Hafner, CEO and co-founder of FarmRaise, has a deep understanding of the challenges faced by small and mid-sized farmers, having grown up on a small Angus beef cattle farm in Virginia. She has spent over five years working in environmental policy and has a background in organic farmland investing and experience on Apple's Environment, Policy & Social Initiatives team. Jayce is also a Fulbright Fellow.
Introducing FarmRaise
Jayce met her co-founder, Sami, a USDA Project Manager, while studying at Stanford University's Agriculture program, where they recognized the need for farmer-friendly financial tools. Together, they teamed up with their technical co-founder, Albert, to develop FarmRaise, a simplified application for USDA conservation funding that streamlines hours of paperwork into a 15-minute application. The product quickly gained traction, with hundreds of farmers signing up and spreading the word to producers across the country.
FarmRaise is revolutionizing the agricultural industry by providing farmers with a one-stop-shop resource for grants and funding. Its platform collects granular farm insights and structures the data in a way that allows FarmRaise to apply for a wide variety of grant programs on behalf of its customers. The platform is powered by a team of experts including software engineers, business managers and farmers who share a common goal of earning farmer trust while promoting joy and sustainability in their work. The company has already gained traction with nearly 20,000 farms on the platform, thanks to positive word of mouth, strategic partnerships with agriculture giants such as Cargill and Corteva and a commitment to helping farmers meet low-carbon farming goals.
FarmRaise Tracks App
The FarmRaise Tracks app offers farmers a convenient and efficient way to manage and track their farm finances. The app allows farmers to easily monitor their profits and losses for every product or crop they produce. This feature saves farmers time and allows them to stay organized when presenting their financial information to their accountant or bank. The app also enables farmers to effortlessly upload receipts for every transaction and categorize them according to farm tax categories. With this app, farmers can easily track expenses for each product or crop, split expenses with precision, and have a clear understanding of their expenses for every major farm project.
Farm Funding Library
FarmRaise offers farmers a comprehensive library of farm funding programs, providing easy access to hundreds of options. The platform allows farmers to easily explore and save their top choices, with a timeline view that ensures they never miss a deadline. The FarmRaise dashboard is tailored to help farmers discover grant programs that align with their goals. The library is updated on a weekly basis and farmers are promptly informed of new programs and deadlines through notifications. Additionally, farmers have the option to speak with a Funding Advisor through 1:1 chat support to get personalized guidance on funding programs.
The Briefing
FarmRaise understands the importance of providing relevant and actionable resources to farmers. That's why it has created a weekly newsletter that is specifically tailored to small farm profitability. The newsletter covers a range of topics that are important to farmers, such as rental vs buying, side hustle optimization, conservation financing, and budgeting. Each email contains curated tips and resources that farmers can use to improve their operations and increase profitability. The newsletter has been well received by farmers who appreciate the concise and informative content.
Cost-Share and FSA Records Application
Farmers looking for funding for conservation practices can easily generate an application for USDA cost share and get or renew their Farm Service Agency Records to start applying to USDA programs using FarmRaise platform. The platform simplifies the process and reduces hours of paperwork to a straightforward application.
Now, let’s get into it!
Tell us more about how you started FarmRaise!
I come to this table as someone who has firsthand experience with the challenges facing small farmers. Growing up on a small Angus beef farm in Virginia, I saw how difficult it was for my family to manage the business side of things without the proper tools for cash flow management and market access. We struggled to find ways to become more profitable. However, investing in soil health management was a turning point for us.
We were able to secure a grant that helped us invest in regenerative farming practices. This funding allowed us to upgrade our water and electric systems, which in turn allowed us to move our cattle around more holistically and graze them directly on the land for three additional months each year. As a result, we saw healthier landscapes and cattle, leading to a boost in profitability of $40 per acre.
As a teenager, I found this process fascinating and it sparked my interest in studying finance and regenerative practices in agriculture. After getting my MBA, I teamed up with my cofounder, Sami Tellatin, and talked to farmers across the US and found that access to capital was a major barrier for many. These conversations solidified our conviction that this was a complex challenge worth dedicating time to, and ultimately led us to found FarmRaise, a platform that helps farmers access funding for regenerative practices.
Since starting FarmRaise, what has the impact been?
Since launching, FarmRaise has seen a high demand for tools to help farmers access financing. There are many funding opportunities, including the Environmental Quality Incentives Program, that provide capital to fund sustainable practices, but the application process can be complex and require a lot of paperwork, including setting up records with the USDA. In response, we developed a simplified version of the application process that makes it easier for farmers to access funding.
Our platform has grown rapidly, and we now have a community of almost 20,000 farms and have helped hundreds of farmers to apply for innovative financing to increase their profitability and sustainability.
What are some examples of how farmers have become more sustainable?
FarmRaise helps farmers access funding for a wide range of sustainable farming practices, including cover crops (plants that slow erosion and improve soil health), rotational cropping (planting different crops sequentially on the same plot of land), fertilizer precision, methane stewardship, and riparian buffers (vegetative zones that serve as a buffer to pollutants entering a stream from runoff).
One of the key indicators of the success of these efforts is the biodiversity on the farm. The USDA funds programs that promote wildlife diversity, and one of the ways to measure this is by tracking sightings of new or known wildlife on the farm. For example, on our farm in Virginia, we're working on bringing back the quail population and tracking their progress. By implementing these sustainable practices, farmers can create opportunities to encourage different species to thrive on their land.
Tell us a little bit more about regenerative agriculture
The fundamental difference between conventional and regenerative agriculture is in how resources are extracted and replenished. Conventional agriculture typically involves extracting resources without giving back to the environment. On the other hand, regenerative agriculture is focused on replenishing resources, such as soil, air, and water, while also potentially adding more. This approach aims to create a regenerative cycle that benefits the environment, the farm, and the community.
Replenishing the soil
Soil health is essential for the long-term success of any farm, and it can be protected and replenished through sustainable farming practices such as planting cover crops and using rotational cropping. Cover crops can be used to slow erosion, manage soil fertility, improve soil quality, and promote biodiversity and wildlife. Rotational cropping, on the other hand, is a technique that can be used to optimize nutrient levels in the soil, combat pest and weed pressure, and improve soil health. These practices can help to create a regenerative cycle that benefits the farm and the environment.
Replenishing the air
Regenerative agriculture includes a variety of practices that aim to reduce methane emissions, such as Anaerobic digestion and Manure storage, as well as supplementing cow feed to reduce burping. Cow burps are one of the major sources of methane emissions, but by adding seaweed to their feed, farmers can significantly reduce these emissions and contribute to a more sustainable and regenerative farming system.
Replenishing the water
One of the most effective ways to improve the health of water sources and downstream communities is by keeping cows out of rivers. Many pastures flow down to live water sources, which can become particularly active during heavy rain or flooding. When cows are allowed to graze in these areas, it can have negative impacts on downstream communities and wildlife. This is a significant challenge for livestock producers, but it can be addressed through collaborative efforts. For example, if all livestock producers upstream and downstream work together to install fencing.
For row crop farmers, precision farming can also play an important role in reducing the environmental impact of farming. This can be achieved by incentivizing farmers to use less fertilizers and chemicals and avoid spraying in a way that runs off into local tributaries when it rains. This can help to preserve the health of local water sources and downstream communities.
Switching gears here a little bit, how do you find farmers to work with?
Creating educational content and resources for farmers has been a rewarding experience for FarmRaise. The company takes a "NerdWallet-esque" approach, providing farmers with resources and information on regenerative management, business management, and other important topics. This has helped us to reach a wider community of farmers in a cost-effective and efficient way. Additionally, the feedback and ideas we've received from farmers have helped to shape and improve our platform.
Farming can be a lonely and isolated activity, and many farmers have lost the sense of community they used to have. By creating a digital space where farmers can come together and share knowledge and support, FarmRaise aims to build a community to resource and share knowledge with the farmers.
How do you think about finding VC partners?
In the venture-backed industry, there are many misconceptions about farmers being skeptical and not innovative. However, we have found that farmers are actually excited about new ways to run their business and are open to innovation. At FarmRaise, we are working to demystify farming for venture capital and showcase the complex, yet exciting opportunities it presents.
As a first-time founder, the fundraising process can be challenging, but it also forces you to think holistically about the company's vision and the steps needed to achieve it. We take a very relationship-oriented approach, building trust with potential investors through meetings and discussions. We look for partners who understand the full potential of the industry, and are excited about the impact our tool can have on farmers.
When we found our lead investor, the conversation was seamless and we immediately began brainstorming ways to grow the company. It was like a perfect first date, we couldn't stop talking about our vision and ideas for the future.
My advice to other founders is to hold out for investors who truly understand and share your vision. Look for that spark, and don't settle for less. Keep your north star in mind and remember why you started this journey in the first place. And if it doesn't work out this time, learn from the experience and move forward with hope.
The mix of investors we have is exciting. We have seed-stage investors, the Nature Conservancy, and farmers on our cap table. We also have long-term tech and CEO entrepreneurs who bring a wealth of experience and perspective to our team.
Are there any themes you’re seeing emerge over the last year across the farmers you are partnering with?
Land Acquisition
One of the most pressing concerns among farmers today is the acquisition of land. Specifically, farmers are seeking advice on how to improve their chances of taking advantage of opportunities for land ownership. Since land transfer is often a generational process, farmers who haven't inherited land often have to be resourceful and creative in their approach.
To help farmers navigate this process, FarmRaise is providing a comprehensive guide on how to acquire land. This guide includes a checklist of steps farmers can take to evaluate opportunities and prepare for the ups and downs of the land acquisition journey. We believe that by equipping farmers with the right tools and resources, they will be better prepared to take advantage of land ownership opportunities and secure a brighter future for their farms.
Solar Development
Recently, I had the opportunity to speak with a team of students about an exciting new concept in agriculture - agrovoltaics. These students created a company called Fundusol. The idea is to integrate solar products with agricultural production in a way that doesn't disrupt the farming process. These projects are especially well-suited for areas in physical proximity to agriculture.
What we have seen is that farmers are becoming increasingly interested in solar as an opportunity. This is reflected in the volume of farmers searching for solar grants online.
One important aspect to consider is the nuance of local cooperative dynamics. This is a recurring theme in many of these projects. In order to make innovation happen on the landscape, it often takes a multi-party effort. This means that farmers have to team up with their neighbors and invest in the social fabric of their communities. This is critical to the success of these projects and it's something that we at FarmRaise are paying attention to as we work with farmers to help them access funding and resources to implement these sustainable practices.
What’s next for FarmRaise?
At FarmRaise, we are seeing rapid growth in our farmer community and are expanding our team to meet the demand. We are excited about the potential for a network effect as we continue to scale our farmer network. In the coming years, we will be partners in several climate-smart partnerships, helping to provide the necessary technology infrastructure to make it possible. Our goal is to be the conduit that makes it easy for underserved farmers to access capital and scale their farms in a more sustainable way. This is a very exciting time for FarmRaise and we look forward to playing a key role in helping farmers to achieve their goals.
To close out our conversation, do you have any takeaways or recommendations for readers who are interested in the sustainable agriculture space?
Looking back on my time as an undergraduate, one thing I wish I had known was that many things are possible if you're willing to take action. If you see people in the world doing things that inspire you, don't let self-doubt hold you back. Instead, take steps towards learning more about that field or opportunity. Read about it, speak to people in that field, and test it out. When I first considered starting FarmRaise, I fell into the trap of questioning my readiness and whether I had the right background. But I've come to realize that taking action and learning through doing is a crucial part of making change happen. So, if you're passionate about making a difference in the world, don't be afraid to take that first step and see where it leads you.
Additional Resources
You can find more information about FarmRaise below:
FarmRaise Website: https://www.farmraise.com/
Tech Crunch Piece: https://techcrunch.com/2022/01/21/farmraise-aims-to-become-a-financial-services-giant-starting-with-farm-grants/
If you’d like to keep up with Jayce, you can find her on:
Twitter: https://twitter.com/jaycehafner
Medium: https://jayce-hafner.medium.com/
If you’re interested in consuming even more media, we’ve got even more resources for you:
CrunchBase Profile: https://www.crunchbase.com/person/jayce-hafner
CapBase Episode: https://capbase.com/jayce-hafner-farm-profitability/