Starting Point:

Social finance for sustainable food, fishing & farming

This module is presented by:

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This starting point module aims to provide investors, entrepreneurs, decision-makers and community leaders in the food, farming and fishing sector with an overview of social finance – a tool for solving community-based problems.

The resources available are downloadable, and intended to be shared as you work through your own journey to determine if social finance is the tool for you.

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What is social finance?

Social finance is an approach to managing money that delivers a social and/or environmental dividend and an economic return.

Social finance aims to leverage existing capital to attract new investment for public benefit.

social finance [soh-shuhl fi-nans, fahy-nans], n.; synonym: impact investing

Synonyms: Impact Investing, community investing, patient capital, Slow Money, and mission-related investing (MRI) for foundations.

Impact + Return

Poverty reduction

Carbon Reduction

Jobs for marginalized populations

New generation of farmers on land

Environmental Sustainability

1% p.a. over three years

Prime + 2%

8%

Two Key Features

5

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Why do we need social finance?

The Farming Sector:

• 52% of Ontario’s farmers are losing money and most Ontario farmers earn most of their income from off-farm jobs

• In 2011 there were 205,730 farms in Canada representing a 10.3% decrease in number of farms from 2006.

• Farm size is increasing – making it difficult for small/medium sized farms to exist

• Farmers are having problems saving for retirement – high borrowing is making them need to sell farm to finance retirement

• Small and medium sized start-up enterprises can require up to $2 million in funding.

The Fishing Sector:

• Fishermen face barriers to entering the fisheries due to the high cost of fishing licenses

• The price of fish caught using the most sustainable types of fishing gear, is not reflected in the price of fish in the marketplace

What are the challenges facing these sectors?

There are tangible social and economic benefits of the sustainable food, fishing and farming economy.

Why do we need to meet these challenges?

SOCIAL : • Health outcomes are improved through making healthy food more accessible

• Local community development

• More resilient food systems that are less susceptible to shocks, particularly for marginalized populations

ENVIRONMENTAL:• Sustainable agriculture and fishing practices improve environmental outcomes

• Local food travels shorter distances and leaves a smaller carbon footprint

• Sustainable fishing practices help ensure a healthy ocean ecosystem now and in the future

COMMUNITY ECONOMIC DEVELOPMENT:• Jobs for new Canadians

• More secure retirement for farmers and fishers

• Supporting local job creation and circulation of money into local economy

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Social finance is a tool for solving problems.

Traditional financial systems are not addressing the challenges being faced by this sector.

Social finance is one tool that can help address these challenges. Like any other tool, it is important to remember that social finance is not the right fit for every problem.

As you start learning more about social finance, keep in mind the following questions:

What is the problem you are hoping to solve?

Why does the problem exist?

What do you value?

What is your opportunity?

Who can be involved?

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Who is involved?

Who is supplying money?There is a growing number of investors interested in the sustainable food, fishing and agriculture sectors. These investors include government, private wealth investors, foundations and funds. The investors in this space range from prioritizing financial returns, to optimizing social or environmental returns. We call these financial first investors and impact first investors.

CANADA

INTERNATIONAL

Impact First Investments Financial First Investments

Investor MarketplaceWho are some key investors in the sustainable food, fishing and farming impact

investing marketplace?

THE CAPITAL MOBILIZERS

There are also many individuals and organizations that are mobilizing capital.

These are:• Farmers• Fishers• Community Leaders• Entrepreneurs

They are mobilizing capital for projects such as:

• The creation of urban farms• Purchasing farm land• Creating a local food co-operative• Expanding their food business• Purchasing fishing quota• Making the transition to sustainable fishing practices

Who is mobilizing this capital?

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West End Food Co-op in Toronto• Local food co-

operative• Issued four

separate community bond offerings raising $200,000 for the construction of the co-op

Homestead Organics• Certified B-Corp• Needed capital

for purchase of equipment

• Raised $245,000 in promissory notes leveraging community relationships and $190,000 in Government grant funding

How is capital being mobilized?

Off the Hook• Community

supported fishery in Atlantic Canada

• Annual subscription offering supports local small-scale fishermen in Nova Scotia

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Taking the next step

What is the problem you are hoping to solve?

Why does the problem exist?

What do you value? 

What is your opportunity?

Who can be involved?

Getting started with social finance

Who needs to be involved?Community stakeholders I Investors I Mentors I Professional Services

I Public Servants

IMPACTHealthy Communities I Quality of Life I Poverty Reduction I

Environmental Sustainability I Local Investment

Choosing a finance modelCommunity Development Corporations I Community Loan Funds I Community

Bonds Local Investment Clubs I Alternative Financial Intermediaries I Co-working

Spaces Incubators/Innovation Spaces I Local Capital Markets I Sustainable Tax Credits

What change are you seeking?

Capital for facilities or operations I Technical assistance I Enabling public policy |

Skills & Knowledge

Thank You

Questions?

impactinvesting.marsdd.com/knowledge-hub/starting-points-fff

Joanna ReynoldsJreynolds[at]marsdd.comChristie YoungChristie[at]farmstart.caKatie SchleitKschleit[at]ecologyaction.ca