Why choose to invest in agroecology to build a sustainable society?

👀 Estimated reading time: 7 minutes.

Agriculture: at the heart of our societies' needs

Agriculture has always played a fundamental role in our lives. Not only does it feed people, but it is also at the heart of many societal issues: preserving the environment, managing resources sustainably, and supporting local economies.

As the world's population grows, expectations for agriculture are evolving: it must meet food needs without compromising the planet, a challenge that underscores the importance of this sector for the future of our society.

Agriculture in difficulty: the worrying decline in the number of farmers in France

The number of farmers in France is decreasing every year, an alarming phenomenon for the sector. According to INSEE, France had 453,000 farmers in 2017, but around 50% of them will retire in the next decade. Retirements are not compensated, with only one new installation for every 2 to 3 departures, according to the MSA, the agricultural social security organization.

Challenges related to investment and installation costs discourage many young people from embarking on this essential profession.

A new generation of farmers held back by the cost of land.

Becoming a farmer in France is expensive... The National Federation of Safer indicates that the average price of vacant land in 2024 is €6,200 per hectare, an increase of 1.5% compared to 2022.

💡 Did you know?

On average, a farm covers 69 hectares, representing a basic acquisition of €427,800. This amount does not even cover buildings, equipment, or livestock, which can easily increase the investment to more than €1 million.

In short, these costs represent a significant barrier for newcomers, and it is therefore crucial to offer them suitable and sustainable solutions.

Investing in Agriculture

Investors can now get involved in agriculture in a variety of ways, depending on their means and interests. Here are some examples!

💚 Lending to farmers via crowdfunding platforms: The platforms allow you to lend directly to farmers to finance their equipment (tanks, processing plants, etc.). These loans yield between 3% and 6%, but there is a risk, as the investment depends on the project and the specific farmer.

💚 Supporting green energy projects in agriculture: With the Enerfip model, savers can invest in methanization projects or the installation of photovoltaic panels on farms. This type of investment is beneficial for our country's energy transition and supports the sustainable development of farms.

💚 Investing in agricultural land through real estate companies: Some agricultural real estate companies like FEVE allow you to invest in plots of land, an indirect way of supporting farmers and benefiting from long-term land value.

The FEVE model: an innovative and accessible approach for all

FEVE is a solidarity-based real estate company that facilitates the purchase of agricultural land to enable young farmers to set up without bearing the financial burden of the land alone. How? The FEVE model aims to guarantee organic and environmentally friendly farming by encouraging sustainable agricultural practices. In addition to providing access to land, FEVE works with farmers to help them set up at moderate costs and focus on healthy production.

Bring agroecological farms to life with your savings

Why invest in FEVE?

🌿 An agroecological charter to support the ecological transition:
FEVE is committed to organic farming. It imposes a charter on its farmers that integrates sustainable practices: minimal tillage, mixed farming with sustainable livestock farming, and reduced animal protein. This strong commitment allows FEVE to promote agriculture that respects the environment, land, water, and humans, thus contributing to quality, environmentally friendly food.

🌿 A stable investment over time: agricultural land has a stable increase in value. In fact, since 1997, its price has increased by an average of 2.8% per year. This low volatility makes agricultural land an attractive solution for those looking for a long-term investment with moderate risks.

🌿 Attractive tax benefits: Investing in a socially responsible property company like FEVE allows you to obtain attractive tax reductions. For example, the shares of a socially responsible property company approved by ESUS (Socially Friendly Enterprise) are exempt from the Real Estate Wealth Tax (IFI). Furthermore, investing in a socially responsible real estate company can offer an income tax reduction of up to 25% of the amount invested, by holding the securities for at least 7 years.

Good to know before investing in agricultural land

🌸 The liquidity of the investment: agricultural land remains an investment that is not liquid, especially when rented, because their price is discounted by 20%. It is a long-term investment that requires patience to maximize its profitability.
💡 Note that FEVE, by pooling dozens of farms under the same property company, considerably reduces liquidity risks.

🌸 Moderate profitability: Although agricultural land is a stable investment, FEVE stands out for its social objective: to offer young farmers access to affordable land while respecting the rents regulated by the prefectural decrees of each territory. Returns are limited because FEVE has chosen to offer farmers the possibility of buying back the land in the future at a discounted price. Thus, if there is a capital gain, FEVE only distributes half of it to investors, to allow farmers not to buy at a high price the land they have been cultivating for a long time.
💡 In theory, if you invest in FEVE, you can expect an annual return of between 2-3%, not including the tax reduction of the ESUS approval.

🌸 All investments involve risks:It is important to remember that, as with any investment, the capital invested is subject to risks. Past performance does not guarantee future results; It is therefore essential to have a clear and realistic vision before investing.

💡 FEVE's offer in brief...

Who is FEVE? A social and solidarity economy company with ESUS approval.
Their purpose? Accelerate the agro-ecological and food transition while respecting humans and the environment.
How? Via a solidarity-based property company in which anyone can invest, starting from €500.
What actions? With the money invested, FEVE buys farms which it then rents (with an option to purchase) to project leaders who wish to establish agroecology.
What objective? Raise €18 million by the end of the year to enable 50 new farmers to establish their businesses.

Investing in agriculture with FEVE means choosing a responsible and sustainable investment that contributes to the renewal of our agricultural model while supporting young farmers. This model is part of a long-term vision, where financial return and social impact combine to serve agriculture that respects the planet and those who cultivate it.

Do you want to be part of the adventure with FEVE? Find out more here!