Pivotal Farms is a woman-owned, social enterprise pursuing sustainable production and distribution within the legalized California cannabis industry. Its business model is based on vertical integration across all parts of the supply chain (think farm-to-table), such that production, aggregation, processing, sales, and distribution are shared within one collective organization.
Pivotal Farms’ immediate focus is to raise $350,000 to launch a regenerative cannabis farm paying fair wages and growing local community. An initial investment will enable the business to prepare for its first growing season, and hire and train a core team to launch its collective services. Staff needed includes an agronomist specializing in sustainable agriculture, two farmers, a staff attorney and accountant, and a communications manager.
To date, Pivotal Farms has scouted possible farm locations in California as well as started the licensing process to meet state and federal regulations for hemp and marijuana production. This initial round of funding will support securing agricultural land, purchasing farm equipment and seed stock, and setting up an organic compost system. The farm will be a 30-50 acre operation located in the temperate zones of either the Central or Imperial Valley. Both of these areas are optimal regions for regenerative agriculture practices and allow for human scale within the enterprise’s chosen community. Once the farm is established, their growth strategy is to add more producers, distributors, and buyers to share in the organization’s services.
The Los Angeles Times 6/25/14
“American farmers have been watching as Canadian farmers clear huge profits from hemp: $250 per acre in 2013. By comparison, South Dakota State University predicted that soy, a major crop, netted U.S. farmers $71 per acre in 2014."
The Los Angeles Times 6/25/14
sales & projections.
In its first year, wholesale will be the primary sales channel for Pivotal Farms. More specifically, dispensaries and product manufacturers will be targeted for marijuana, and refineries manufacturing biodiesel for hemp. In the second year, Pivotal Farms will expand into the customer-direct channel via pop-up shops and community farm kits. Community farm kits are self-contained "farms in a box" that offer tools, seeds, and instructions for growing in a small urban space. Throughout all of its distribution channels, Pivotal Farms will implement a packaging buy-back program to promote sustainable practices via recycle and reuse.
Based on our projections, Pivotal Farms anticipates reaching profitability in two years, and succesively reaching approximately $1M, $2M, and $5M in the first three years. After this initial raise, the business will pursue one additional online crowd-investing round in 2018 and also seek private investments from both accredited and non-accredited investors. Currently, The Flyways is exploring creative partnerships with community foundations, farm agencies, and local non-profits around mission-related investments.
Please reach out to us if you're interested in making a direct investment in Pivotal Farms.
All Pivotal Farm investors must reside in the state of California.