Developing Advanced Controlled Environment Agriculture Facilities Nationwide
Do you have a project that you would like Tanya Development to consider for funding and development?
We very much appreciate the opportunity to review your plans and ideas for a new, state-of-the-art controlled environment agricultural operation. No matter what stage your planning is in, we look forward to working with you to turn your plans into profitable reality. If you have already prepared a detailed presentation, simply attach it to an email and send to firstname.lastname@example.org. If you are at the beginning stages of pursuing and developing a concept or plan for a new operation, then the following outline will assist you in detailing the information that will eventually be required before a funding commitment and development can begin.
In a traditional real estate Build-To-Suit relationship, Tanya Development’s role as the eventual Lessor is to provide for the funding of the development and construction of the real estate facilities along with providing the needed improvements and equipment necessary for immediate production. The farm operator – once fully vetted and qualified – becomes the tenant or Lessee under a long-term lease arrangement which may include a future buyout provision under some circumstances. As the prospective tenant, the objective of your proposal is to provide sufficient information for an investment fund’s analysts to review, vet and move the project towards approval and funding in the most expedient manner possible. Therefore, the quality of the information provided and the ease in which it can be qualified will influence the speed of acquiring the necessary funding and the cost of those funds. The success of any endeavor relies on creating a relationship of trust between the lessor and lessee so please consider this when deciding what information you wish to include in your proposal.
Consisting of Market Research & Concept Development and a Preliminary Site Evaluation, the objective of an Economic Feasibility Analysis is to provide the prospective Lessor with enough information and financial projections to determine the viability of the proposed farm. It is understood that the proforma financial projections for operations provided by the prospective Lessee (the tenant farmer) might be based in part on the farmer’s historical expertise along with proforma projections that you might obtain from various systems vendors. If a site and/or existing facility has not yet been identified, expenditures related to real estate acquisition, renovation of existing facilities, infrastructure and other pre-operation costs will be provided by Tanya.
Market Research & Concept Development
Market Research will focus on understanding the gaps and opportunities in your proposed market and should include some of the following data:
- High demand products
- Seasonality and sourcing
- Market size
- Market trends
- Market opportunities
As a result of this research, you should be in a position to propose an initial crop list that details potential yields, basic growth parameters and approximate wholesale market prices for those crops along with operational costs.
Preliminary Site Evaluation
Assuming that at this early stage, a specific site or location has not yet been selected, the information required will be somewhat minimal. Once the initial basic vetting process has been completed, Tanya will work directly with the farmer to identify potential locations and sites that meet the investment fund’s criteria. If there is a preferred site or precise location you would like to submit, please provide a fully detailed report on the proposed site including zoning and permitting regulations off site and utility requirements and/or expectations.
The following is a sample list of the preliminary information that should be included in a proposal prepared by a prospective operator for a build-to-suit development and should be easily modified as regards to selected crops (bibb lettuce is used as an example).
- Description: No more than two or three paragraphs to introduce and describe the proposed project
- Location: Describe the proposed location for the new facility – area and facilities required; potential target zip codes (if known); other information that helps determine your location requirements
- Site/Utilities: If a physical site is known, please list any site or utility constraints or advantages that would affect useable acreage and construction/operating expenses.
The Operator / Tenant
- Identification: Please identify who is proposed as the Master Tenant and their qualifications (if the actual farm operator lacks the financial strength to obtain the potential lowest rent, it may work under a sub-lease with a highly qualified Master Tenant)
- Relationships: If there are more than one entity and/or individuals signing on the lease and/or operating the facility, please provide an explanation of the various relationships
The Crop (as part of a typical proforma – for illustration purposes, this outline assumes a greenhouse facility growing lettuce. Please modify accordingly.)
- Target crop(s) based on projected demand and profitability
- Number of growing months for this target crop
- Maximum greenhouse acreage that can be supported in this market for target crop
- Heads of lettuce planted per week per acre
- % crop loss factor
- Heads per box
- Sale Price per Head
- Estimated cost of seed, cube, nutrient (per plant)
The Customers / Buyers
- General description of target buyers along with specific examples of buyers contacted that showed interest and potential quantities and pricing
- Correspondence or other documentation received from target buyers (ideally, 2 or 3) indicating interest