Going Big: Investing in Chestnut Agroforestry
Investing can be characterized by a variety of metrics including risk, return, time, and costs. How investments perform over the long run, and how they can help connect transition a farm across multiple generations, may be an important factor to individuals and family offices making long-term investments.
An Opportunity Knocks
In 2021, Keavin Hill, who owns Hill Farms based in central Ohio, learned of an opportunity to transition his farmland to chestnut & hay production. Historically, Keavin had managed corn, soy, and wheat operations across his +/- 4,000 acres stretching into southern Ohio and Northern Kentucky.
Keavin Hill, Hill Farms
180 Acre former corn/soy farm managed by Hill Farms in Southern Ohio transitioned to Chestnut Agroforestry in Fall 2023
I have always been open to new practices and trends which allow for diversification of operations” A farm operation that lacks the flexibility to adapt to influential internal variables and external market factors is sacrificing revenue and growth potential. I first embraced and began to lead in sustainable agricultural practices in the 1980s with the use of biological fertilization and no-till techniques."
Keavin Hill
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Trusted Advisor in Transition
Most firms in agriculture tend to evaluate farmland value based on land appreciation and current or historical crop yields & revenues.
Propagate team evaluated each parcel not only on the basis of how much revenue it has generated in the past, but on how much revenue it has the potential to generate in the future by adding tree crops to their operation.
Better still, the Propagate team can execute the complete planting and cultivation strategy alongside the farmer, delivering to landowners a farm with complete, functional, operations & maintenance that meets revenue expectations for the future.
1 Year Old Chestnut Seedlings - Miller Elite
Phase 1 - Farm Suitability & Site Design
After evaluating Keavin’s first 130 acre property using the Overyield platform, crop location was selected based on soil quality, slope, and wetness.
The system was leased and financed by Agroforestry Partners, a 50% owned agroforestry financing subsidiary of Propagate in partnership with Walnut Level Capital.
From planting in 2022 through 2028, the space in between the tree rows will be used for hay production. After 2028, the trees will have grown tall enough to be above browse height, so that livestock can rotate through the farm as a managed grazing system in the winter & early spring.
Overyield’s Suitability Map for Chestnuts in KY
Pictured: Overyield software design for one of 14 farms in transition: 7,809 Chestnut Trees, 880 Black Locust Trees (Timber).
Propagate and Agroforestry Partners are the next chapters in my efforts to meet the needs of the market through the wise utilization of our natural resources in ways that lead us to a more sustainable future.”
Keavin Hill
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How It Works
A stable long-term lease
The lease is a 20-year lease that includes the ownership of the trees as assets on the land using a combination of timber rights and farm product rights. Rates range depending on the quality of the farm’s suitability.
Gold standard site prep and planting
Propagate uses regenerative agricultural principles; This includes the use of subsoil de-compaction, cover cropping, permanent ground cover, biological stimulants & re-mineralization to build carbon, support soil health and minimize erosion.
Hill Farm’s role & returns
Keavin earns in 3 ways: on stable lease payments, services for the management of the chestnut system through his agricultural management company and on alley-cropped hay for a wholly owned hay enterprise.
Phase 2 - Scaling Up to more Ground
151,000 trees planted
With 180,000 trees targeted to be planted by the end of 2024 across 1,850 acres, Keavin’s farm is the largest chestnut operation in the US.
We have now moved from 130 acres to over 1,800 acres of land that we own and/or manage being planted for chestnuts. We are excited that our landlords have embraced our vision to improve the land through these practices….
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Farming is about meeting the needs of the larger populace, you plant crops and tend livestock because it addresses the needs of those who you may never directly interact with but desperately need you.”
Keavin Hill
An uplift for farm profit & nature
Farm plans are based on the land’s inherent nature to ensure riparian areas and biodiversity are core to the future, not an afterthought.
151K trees planted
2022-2024
70%
8%
22%
Chestnut & Hay Production
In-Field Biodiversity
Riparian Restoration