Sustainable investing in agriculture
We produce crops that help meet increasing global demand for nutritious food and we do so in ways that preserve our ability to do so in the future.
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Manulife Permanent Cropland Plus Fund (MPCPF)
MPCPF strategically invests in U.S. permanent crop farmland and farmland plus investments,¹ which complement traditional farmland investing by meeting the increasing capital needs of agribusiness, expanding the investable universe,and enhancing risk/return characteristics.
Permanent crops and investment opportunity
Permanent crops are higher-value crops that offer the potential for strong returns based on demand fundamentals that reflect current trends shaping the global food markets. Our long experience in development and direct operation of permanent crops at scale sets us apart.
Farmland plus: investing in the agricultural value chain
Combining farmland plus with traditional farmland investment strategies can provide investors with a host of potential benefits, including risk mitigation, return enhancement, and market insight into consumer preferences.
15 minutes on MPCPF with Julie Koeninger
MPCPF is a 15-year closed-end fund providing qualified U.S. institutional investors the opportunity to own a diversified portfolio of U.S. farmland and farmland plus investments in one investment partnership vehicle. The fund is currently investing committed capital and targeting a total fund size of US$500 million.
Why U.S. agriculture?
Agriculture investments have historically experienced low volatility while providing attractive risk-adjusted returns. We believe that U.S. farmland offers the largest and most efficient institutional agriculture market in the world. Offering low correlation with traditional assets and moderate inflation protection, agriculture benefits from strong market fundamentals.
As global population grows, demand for food and fiber is expected to increase. Investors can capitalize on this trend while also benefiting from opportunities to reduce greenhouse gas emissions and help mitigate climate change. As a nature-based solution, farmland can provide social and environmental benefits by sequestering carbon, maintaining biodiversity, and contributing to rural economic vitality.
Important disclosures
1 Farmland plus investments are investments that may be operating companies, which add value to, or are associated with, farmland and farmland operations, including the processing, storing, packaging, distribution, and marketing of crops for sale.
Why invest in MPCPF?
The fund offers investors the opportunity to invest in a diversified portfolio of U.S. farmland and farmland plus investments. We believe this strategy gives investors the opportunity to expand returns in the agriculture space while benefitting from the fundamental wealth preservation aspects associated with investments in land assets. Through MPCPF, a broader range of institutional investors can now gain exposure to investments in U.S. permanent crops and farmland plus at scale. The fund will target opportunities that offer the potential for carbon-efficient production and will seek certification for all farmland investments to the Leading Harvest Farmland Management Standard.²
MPCPF—focused on core permanent crop farmland and farmland plus investments
Targets current investment income with potential for long-term appreciation
Ability to leverage decades of experience in permanent crops
Focuses on globally competitive U.S. permanent crops and related infrastructure
Integrated property management
Disciplined investment process
Strong commitment to sustainability
Important disclosures
2 Certification is by Leading Harvest based on an annual assessment of conformation with its Farmland Management Standard.
MPCPF portfolio
Access to a high-quality portfolio of U.S. agriculture investments diversified by crop type and region
Geographic diversification by market value³
Crop type by diversification by market value³
Important disclosures
3 Data as of December 31, 2023 reflective real estate value or purchase price.
Fund snapshot
| Investment strategy | Focus on permanent cropland and farmland plus investments in the United States |
| Investment objective | Current income and long-term appreciation |
| Structure | Closed end |
| Closings | Closed US$201 million in April 2022, next closing expected in Q2 2024 |
| Leverage | Up to 25% of gross asset value |
| Term | 15-year closed-end fund with an optional one-year extension at the general partner’s option, plus two 2-year extensions available on agreement of 2/3 of interested fund limited partners |
| Total market value of properties | $127.0 million |
| Number of invetsments | 6 |
| Net asset value | $132.4 million |
Important disclosures
All data as of December 31, 2023 unless otherwise noted.
What sets us apart
As the world’s largest natural capital investment manager,⁴ Manulife Investment Management's experience, size, global scale, and reputation in the market allow us to access a wider array of markets with reduced operating risk. We’ve been building and sustainably managing diversified farmland portfolios for over three decades, developing particular expertise in the management of permanent cropland for the benefit of our investors while contributing to the health of the environment and local communities.
Deep expertise
Extensive farming experience, investment expertise, and commitment to sustainability create a unique foundation for informed decisions and solid performance
Proprietary research
Research capabilities inform our investable universe, underpin our investment strategy, and support portfolio management decisions
Unique product offering
Designed to realize returns from a diversified portfolio of high-quality, directly operated, and sustainably managed U.S. permanent cropland, farmland plus, and row crop investments at scale
Focus on performance
30+ years of delivering strong farmland returns for institutional investors
Important disclosures
4 IPE research, as of January 29, 2024. Ranking is based on total natural capital assets under management (AUM), which includes forestry/timberland and agriculture/farmland AUM. Firms were asked to provide AUM, and the as of dates vary from December 31, 2022, to December 31, 2023.
Sustainable operating improvements over time
Our property management team has continuously innovated on variety selection, orchard design, integrated pest management, habitat for pollinators and beneficial insects, and whole orchard recycling.
Regenerative farming practices
Sustainable food production can restore nutrient deficiencies, reduce vulnerability to pests and diseases, and decrease the need for synthetic inputs, all while increasing the soil’s water holding capacity and ability to sequester carbon.
Investing in the agricultural supply chain
Vertical integration into midstream processing offers growers access to customer preferences while helping to reduce risk by providing an additional source of revenue.
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Measuring our impact
We manage the assets under our care to ensure their optimal health because it’s the right thing to do—and it’s good business. Sustainable management of agriculture assets includes commitments to water conservation, regenerative agriculture practices, and other soil health initiatives that have the potential to enhance and maintain carbon storage.
Read about our approach to sustainability100%
of our U.S. farmland5 is certified sustainable.
295
acres of pollinator habitat managed across our California orchards
98%
of our farms follow regenerative soil health practices6
100%
of our permanent crop farms use water conservation practices
100%
of our agriculture investments account for water risk and opportunity
3.3 Mmt
C02 removed annually over the past five years through our managed farmland
Important disclosures
All data is as of December 31, 2022, unless otherwise specified. 5 Certification is by Leading Harvest and is based on an annual assessment of the conformation to its Farmland Management Standard. Most current data shown. 6 Includes farms employing one or more of the following practices: conservation tillage or no till, cover vegetation/crop; crop residues, crop rotation, intercropping, nonproductive vegetation, rotational grazing, and soil amendment.
Water
Sustainable water management practices that benefit both farms and local communities include efficient application of modern farming practices and irrigation technologies (more crop per drop).
Regenerative agriculture
Regenerative practices build soil health by enhancing organic matter and restoring soil biodiversity. Understanding the benefits of these practices can lead to wider deployment of regenerative practices over time.
Carbon
Farmland assets can act as a significant carbon sink. Sustainable management can reduce emissions and enable carbon sequestration to mitigate climate change.
We work with leading third-party carbon registries, sustainability certifications, research centers, and nonprofits to ensure environmental and social benefits across our timberland assets.
Important disclosures
All logos are registered trademarks of the respective organizations/firms represented. Manulife Investment Management is prompting each of the ESG actions shown through becoming a member of the respective programs or a partner with the organizations on these endeavours.
Related viewpoints
August 17, 2023
Enhancing farmland value through sustainable improvements
Sustainable agriculture can promote healthier and more diverse farmland ecosystems while aiming to enhance efficiency and profitability.
February 17, 2021
Why invest in agriculture?
Learn why agriculture—perhaps mankind’s oldest investment opportunity—remains one of the most compelling opportunities available today.
January 17, 2024
Investing in the power of nature
The crisis facing the world’s biodiversity has become front of mind for policymakers and investors in recent years. Investing in natural capital—the world’s stock of natural resources that combine to yield a flow of benefits—represents an exciting investment innovation that can achieve a range of positive impacts and create opportunities outside of traditional investment silos.
Contact us
Julie Koeninger, CFA
Managing Director, Agriculture Investor Relations
Manulife Investment Management
T: 617-747-1559
Important disclosures
This content describes Manulife Permanent Cropland Fund LP (the Fund), a Delaware limited partnership in formation. The information is for information use only. This is not an offer to sell or a solicitation of an offer to buy any security, including any interest in the Fund. Interests in the Fund are being offered solely on the terms of the Fund’s Confidential Private Placement Memorandum (the Offering Memorandum) and related Subscription Documents, as they may be amended and supplemented from time to time. Prospective investors in the Fund should carefully review the Offering Memorandum and related Subscription Documents. No investor should rely on this presentation as the basis for making any investment decision.
Manulife Investment Management Timberland and Agriculture Inc (“MIMTA”) is the investment advisor of the Fund. MIMTA is registered with the U.S. Securities and Exchange Commission as an investment advisor. It is a wholly owned subsidiary of Manulife Financial Corporation (“Manulife”) and is affiliated with several U.S. based and non-U.S. based investment advisers which are also subsidiaries or affiliates of Manulife. MIMTA has prepared this webpage and it is intended for institutional and professional investors only. Recipients should carefully read and evaluate the risks outlined in the Fund’s Memorandum.
Any general discussions or opinions contained within this presentation regarding securities or market conditions represent the view of either the source cited or MIMTA as of the date indicated and are based on current market conditions, which will fluctuate and may be superseded by subsequent market events or for other reasons. The information and/or analysis have been compiled or arrived at from sources believed to be reliable but MIMTA does not make any representation as to their accuracy, correctness, usefulness or completeness and does not accept liability for any loss arising from the use hereof or the information and/or analysis contained herein. Information about a portfolio’s holdings, asset allocation, or country diversification is historical and will be subject to future change. The Fund is intended to complement other types of investments and is not intended to serve as an investor’s only investment. Neither MIMTA or its affiliates, nor any of their directors, officers or employees shall assume any liability or responsibility for any direct or indirect loss or damage or any other consequence of any person acting or not acting in reliance on the information contained herein.
Nothing in this constitutes investment, legal, accounting, tax or other advice, or a representation that any investment or strategy is suitable or appropriate to any prospective individual investor’s circumstances, or otherwise constitutes a personal recommendation to a prospective investor. Prospective investors should take appropriate professional advice before making any investment decision.
The distribution of the information contained in this presentation may be restricted by law and persons who access it are required to comply with any such restrictions. The contents of this presentation are not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to any applicable laws or regulations. Each recipient confirms that it is aware of the laws in its own jurisdiction relating to the purchase and sale of the interests in the Fund discussed and each recipient warrants and represents that it will not pass on or utilize the information contained in the webpage in a manner that could constitute a breach of such laws by any Manulife entity or any other person.
This webpage has not been reviewed by, is not registered with any securities or other regulatory authority, and may, where appropriate, be distributed by the following entities.
United States: John Hancock Investment Management Distributors, LLC, Member FINRA, SIPC, Listed MSRB.
No entity makes any representation that the contents of this presentation are appropriate for use in all locations, or that the transactions, securities, products, instruments or services discussed in this presentation are available or appropriate for sale or use in all jurisdictions or countries, or by all investors or counterparties. All recipients of this presentation are responsible for compliance with applicable laws and regulations.
Third-Party Certifications
Any third-party certification is as of the date presented and Manulife has not separately verified the information underlying any such certification. Neither Manulife nor its affiliates compensated any such third-party for such certification, other than the third-party’s standard fees, such as program fees and audit costs. Payment of those fees is no guarantee of certification. Certification by the third-party does not reflect any endorsement by that third-party to invest in the Fund. None of the certifying entities references herein endorses Manulife Investment Management or the Fund or recommends any investment in the Fund.
Risk Factors
Investments in the Fund’s strategy include a number of risks and limitations, including but not limited to the risk of loss. Forestry investments involve a number of significant risks, any one of which could cause the Fund and investors in the Fund to lose all or part of the value of their investment.
Carbon credits are an emerging and evolving asset class, and thus the regulatory and taxation rules and valuation standards that apply to them and forestland held primarily for the generation of carbon credits are also emerging and evolving. Valuing Forestry Investments and related assets is subject to uncertainties and there is no guarantee that values determined by Manulife IM or its affiliates will represent the value that could be obtained for an asset if it were then disposed of in a market sale or when it is ultimately disposed of. The long-term demand for carbon credits is also uncertain, as demand is driven by political and social commitments to the goal of reducing greenhouse gas emissions, which goals may change or may be superseded by newer or more cost-efficient technologies.
There can be no guarantee that there will be a sufficient number of suitable investments available to the Fund to permit it to execute on the Fund’s strategy. For example, the Fund will compete with other forestland purchasers in acquiring investments. Because the Fund is prioritizing the generation of carbon credits over commercial timber production, the Fund may not be able to offer pricing for a property that is competitive with an offer from a timber production-only buyer. Once the Fund has acquired a property, there can be no assurance as to whether it will be successful in implementing carbon projects on the property or in generating carbon credits for sale or distribution in kind to the partners. The development of a carbon project is a complex and lengthy process and subject to independent verification procedures. Even if the Fund is able to generate carbon credits from carbon projects on its property, the ability of the Fund to distribute them in kind may also be limited due to a number of factors beyond its control, including the requirements of the registries on which the carbon credits are registered or regulatory restrictions or burdensome requirements with respect to the transfer of carbon credits.
Forestland is also subject to damage from fire, flood, wind, drought, insects, disease, storms and/or natural disasters and poor soil productivity that could result in loss or damage to the forests or negatively impact future carbon sequestration and/or productivity. The Fund may also be subject to environmental liabilities related to its forestlands. A portion of the Fund’s strategy will include commercial timberland production. The markets for timberland products are global in nature, very competitive and impacted by numerous factors.
For a more complete description of the risks, please refer to the Fund’s Offering Memorandum, as amended, restated, supplemented or otherwise modified from time to time.
Information about Environmental, Social and Governance (ESG) Considerations
ESG Integration is the systematic inclusion of financially material ESG issues in investment analysis and investment decisions. We look to incorporate material ESG considerations throughout the stages of our investment and asset ownership lifecycles, taking into account the characteristics of the asset class and investment process in question, as well as industry and geography, among other factors. Each investment team operates in different markets and with different nuances to its approach to investing. Accordingly, each team integrates ESG factors into its investment process in a manner that best aligns with its investment approach. ESG is only one of many considerations that Manulife Investment Management takes into account when making investment decisions, and other considerations can be expected in certain circumstances to outweigh ESG considerations. While ESG analysis is integrated into our investment process the strategy is not optimized or constructed on the basis of sustainability or ESG factors in isolation. There is no guarantee that the evaluation of ESG characteristics will be additive to a strategy's performance. ESG is not a uniformly-defined characteristic and information used to evaluate ESG characteristics may not be readily available, complete, or accurate, and may vary across providers and issuers. Because of the subjective nature of ESG integration, there can be no guarantee that ESG factors considered will reflect the beliefs or values of any particular client. Unless otherwise noted, any references in this presentation to ESG or sustainability reflect the general approach of Manulife Investment Management to integrating sustainability risk considerations into our investment decision-making processes. Further details on Manulife Investment Management’s general approach to sustainability are available at www.manulifeim.com/institutional/global/en/sustainability.
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Interested in learning more about the Manulife Permanent Cropland Plus Fund?
MPCPF strategically invests in U.S. permanent crop farmland and farmland plus investments, which complement traditional farmland investing by meeting the increasing capital needs of agribusiness, expanding the investable universe, and enhancing risk/return characteristics. To learn more, please fill out the form below.
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