1. No category

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Red Pig Farm
Business Plan and Investment Offer:
Equity Loan Agreement

The Agroecology Land Initiative is taking on its first project Red Pig Farm, Llandeilo, Wales.

Building upon the existing assets of the farm we intend to develop a model of co-sufficient
community farming based upon agroecological methods and a regenerative economic
approach to the creation of rural enterprise.

We are seeking additional members to provide further equity investment in the form of an
Equity Loan Agreement.

We are looking for financial assistance in the form of interest bearing loans to help with the
purchase of the land.
Company No:9456728
t: 07808168562 e:[email protected]
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Table of Contents
Preface ............................................................................................................................................................................ 3
Summary......................................................................................................................................................................... 4
What is the business plan? ............................................................................................................................................. 5
How does the Company make money? .......................................................................................................................... 6
Is there any competition? ............................................................................................................................................... 6
Is there sufficient demand? ............................................................................................................................................ 6
Who is involved?............................................................................................................................................................. 7
How will business growth be managed? ......................................................................................................................... 9
What are social and environment returns? .................................................................................................................... 9
What has happened so far? .......................................................................................................................................... 10
How has money been spent?........................................................................................................................................ 10
How will this loan finance be spent? ............................................................................................................................ 10
How will we afford to cover the running costs during the start-up period? ................................................................. 11
Budget ......................................................................................................................................................................... 12
Cash-flow forecast for purchase and development 2015 -2016 ................................................................................... 12
Investor Returns ........................................................................................................................................................... 13
What could go wrong? .................................................................................................................................................. 13
Contact Us .................................................................................................................................................................... 13
Appendix I: Member Equity Investor FAQs ................................................................................................................... 14
Appendix II: Explanation of Member Rights and Responsibilities ................................................................................. 15
Appendix III:ALI Company Objects ................................................................................................................................ 16
Appendix IV: ALI Membership Agreement .................................................................................................................... 17
Appendix V: Businesses and Rural Enterprise ............................................................................................................... 20
Appendix VI: Risk Statement......................................................................................................................................... 24
Company No:9456728
t: 07808168562 e:[email protected]
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Preface
Thank you for your interest in the Agroecology Land Initiative.
The Agroecology Land Initiative (ALI) is in advanced negotiations for the purchase of Red Pig Farm, Llandeilo, Wales,
which is intended to become the location for a community co-housing project combining the research and
development of applied agroecological methods to produce food, fuel and fibre – and to do so using systems that are
not merely sustainable, but that actively repair and regenerate the degraded ecosystems we live with today.
The converging issues of food, energy and soil security we are facing today1 necessitate a new approach to farming
and energy production, and a new relationship with the land. The ALI is an organisation created to advocate and
implement agroecological methods in the UK to help secure food sovereignty, 2 energy independence, and
environmental regeneration in a way that is financially viable and socially just. We envision the regeneration of both
the countryside and rural economies through the creation of co-sufficient community farms rooted in agroecological 3
production.
At the heart of our endeavour is the principle of co-sufficiency, both within the farm community and in its relationship
with the wider community. Progressive ownership, governance and cohousing models will allow members to live onsite in low impact housing, thus enabling the farm to incorporate multiple mutually supportive and synergetic rural
enterprises, thereby making full use of the productive capacity of the land.
The local community will be served by the development of successful rural businesses and by biomass production as
a means to meet local energy demands – there is also the potential to collaborate with community Energy Services
Company (ESCo) towards the development of local small scale local heat and power generation. It is anticipated that
this will be a significant factor in winning support for our project both from the local community and from the local
planning authorities.
The ALI project is currently seeking additional residential members and further financial assistance to help fund the
timely purchase of the farm and initial capital costs.
1United
Nations Conference on Trade and Development, Trade and Environment Review 2013;
http://unctad.org/en/PublicationsLibrary/ditcted2012d3_en.pdf
2Food sovereignty is defined as “the right of peoples to healthy and culturally appropriate food produced through ecologically sound and
sustainable methods, and their right to define their own food and agriculture systems” (La Via Campesina).
3Agroecology is “the application of ecological concepts and principles to the design and management of sustainable agro-ecosystems”
(Gliessman, 1997).
Company No:9456728
t: 07808168562 e:[email protected]
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Summary
Company
Information
The Agroecology Land Initiative Ltd non-profit co-operative Company Limited by Guarantee
registered under the Companies Act 2006
Registration number: 9456728
Registered Office: : Werndolau Farm, Golden Grove, Dyfed, SA32 8NE
Committee
Management Committee: James Scrivens, Sara Tommerup, Matt Cummings, Sonia Ashworth
Advisors: Jackie Carpenter (Business Consultant), Rob Coventry (Forestry Consultant)
Bankers: Triodos Bank
Business Sector
Property Development, Agriculture, Forestry
Business
Description
Our aim is to demonstrate a model of collective ownership and property development to establish
low-impact co-sufficient community farming projects and to facilitate rural regeneration by
developing agroecological methods of farming, forestry and rural enterprise.
Our business model is an adaptation of an equity stake cohousing scheme appled to the purpose of a
developing a co-ownership community farm. With this we hope to demonstrate an efficient and
flexible method of financing for rural enterprise and low impact development.
Investment Sought
For prospective residential members we are offering equity loan agreements of up to £50,000 held
against the value of a defined living space.
Project Returns
There is no interest payment on this investment but the Residential Member will be able to retain
any added value to their living space within co-housing valuation guidelines that ensure the future
affordability of our housing provision..
Social Returns
Not only does this investment provide the Residential Member with a means to build their own lowimpact home with the mutual aid of co-sufficient community it is also is an opportunity to support
the development of agroecological solutions to the convergent social and ecological challenges of our
times. Please see our Brochure for details on the social and environmental returns from an
investment in the Agroecology Land Initiative: Red Pig Farm.
The Team
Company No:9456728
James Scrivens is acting secretary and project co-odinator and Sara Tommerup is our Treasurer, other
members are voluntarily contributing with different aspects of the project development. For more
information on our team see page 4 of this document
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Summary of Terms
and Conditions
Membership: Only Residential Members of the company can make and Equity Loan to the company
(see Appendix II for more information about member’s rights and responsibilities and Appendix IV).
Repayment: Members wishing to leave the community can request the return of their equity loan by
selling it back to the company or, preferably, by finding a new Member to buy them out.
What is the business plan?
We are offering a membership based equity investment model to enable new entrants in farming and forestry to gain
access to land and the means to create a land based livelihood.
The company, as a not-for-profit co-operative limited by guarantee will issue co-housing licences to members to
enable them to use the land for the provision of low impact housing on an affordable basis and to support the
development of agroecological land based livelihoods. A monthly service charge is paid by residential members as part
of their co-housing licence. This charge covers the external costs of the community such as Council Tax, shared vehicle
costs, bulk food items and interest on loans.
Although the co-operative owns the property, the members hold the equity in the property. Members may hold
different levels of equity depending on the value of their living space. Those members with little or no capital to invest
will make a commitment to pay off loans or a mortgage that the company will take out on their behalf. In this way
aspiring landworkers can begin to build equity for future investment while having the benefits of living in a co-sufficient
supportive community where they can learn the skills and gain the experience required to build a self-reliant land
based economy.
Members will have the opportunity to create their own rural enterprise or work with one of the ALI owned or licensed
businesses. Business activities are guided by a set of bye-laws that describe how these different types of businesses
will operate in relation to the co-operative. Similarly these businesses will involve licence agreements and service
charges that will also provide an income for the co-operative.
For more details on our financial model, governance structure and economic approach see our Brochure. For more
information on the proposed businesses and rural enterprises see Appendix II of this document.
Company No:9456728
t: 07808168562 e:[email protected]
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How will the Company make money?
The company makes money through the “service charge” it receives as part of the licence agreements issued to its
residential members for the use of the land. Primarily this refers to the co-housing licence for Residential Members,
although it will also include charges and profit sharing arrangements with businesses that are using the resources of
the land or the community. The company will also own several key business within the project. For instance, managing
the woodlands for woodfuel and timber will create an income for those members with the technical capacity to carry
out the work involved. Furthermore, members have the opportunity to work on these businesses or create their own
business within specific agroecological parameters.
Is there any competition?
The Ecological Land Co-op is an organisation with similar objectives. Their work has been a great inspiration for us and
we hope to work alongside them in developing models of rural regeneration. The main difference in our approach to
rural development is that whereas the ELC are developing smallholdings on long-term leasehold agreements for skilled
farmers we are explicitly seeking to establish co-sufficient community farms based on cohousing principles for skilled
as well as aspiring land workers. We believe that this offers a more secure pathway to those who want to learn the
skills and knowledge required to move towards building a more economically self-reliant, ecologically regenerative
home. With the support of a land based community our members will have the confidence to take that first step to a
resilient land based livelihood that would put them in good stead for taking on the responsibilities involved with, for
example, an ELC smallholding lease.
Is there sufficient demand?
An increasing number of people are looking for a way to pursue a land based livelihood where they can meet their
needs directly through their own labour and work in greater harmony with the environment. There is also a growing
realisation of the benefits of achieving this with the support of a co-sufficient community.
Currently in the UK, the entire country’s farmland is in the hands of less than one per cent of the population. Land
prices have, on average, tripled over the last 10 years or so. Raising capital to fund a smallholding is also becoming
harder, taking out a mortgage to fund a small-scale farming project is no longer an option available to many.
With the average age of a UK farmer being between 60 and 70 and farming skills being undermined we feel there is
an increasing awareness of the need to support new entrants to farming. As part of Groundspring Network and active
members of the Land Workers Alliance (LWA) 4 we have first hand experience of the growing demand for the kind of
development we are offering with the Agroecology Land Initiative.
4
http://landworkersalliance.org.uk/
Company No:9456728
t: 07808168562 e:[email protected]
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Who’s Involved?
Sara Tommerup is a natural builder by trade, holds an MSc in Architecture, Advanced Energy and Sustainability studies
from CAT. She teaches workshops and works as a sole trader in the Forest of Dean. She is interested in woodland work,
especially coppicing as a regenerative building material. She also has a cross cutting and felling chainsaw license. On
the side, Sara is also interested in the research side of things and hopes to be able to contribute with work on
restoration farming.
James Scrivens, a co-founder of the co-operative consortium for Yorkley Court Community Farm and co-founder of
the Dean Forest Food Hub, James is experienced in interpreting and applying legal and governance structures for
community enterprises. He has also been instrumental in the process of developing a Community Land Trust for the
Forest of Dean, Glos., and, over the last two years, has been building his applied mycology business, Mycogeneration.
Sonia Ashworth is a Renewable Energy Bsc graduate of the University of Exeter and has been since living and working
on a number of off grid community projects. She has much experience in the joy and difficulty of communal living and
has started to focus on sustainable building and infrastructure techniques that can be used to develop communities
in a way that reflects the confluence of regenerative methods in sustainable agriculture.
Adam Court trained in organic and biodynamic farming methods, has worked on various farms, and has spent many
years studying curative nutrition, sustainable living and permaculture. He co-designed and implemented a large forest
garden in Sussex and more recently has trained a horse, worked with a forester, installed wood-burning stoves, and
led workshops in food fermentation and agroecology. He is also starting up www.needfire.info, a media and
educational platform investigating regenerative agriculture and culture.
Rob Coventry completed a BSc in Sustainable Technology before going on to train in traditional round-pole timber
framing with the woodsman Ben Law. He has worked professionally as a bicycle mechanic, a renewable energy data
analyst, a carpenter, a coppice worker and a nature-based learning educator. He is currently completing the second
year of an international MSc program at Goettingen University in Germany, titled “Forestry in a Changing Climate”.
His main interests are Close-to-Nature community-orientated forest management and ecology.
Matt Cummings is a computer programmer with a background in developing web-based applications and ecommerce
systems for small and medium enterprises. He is interested in creating open-source educational resources and
exploring the use of crowdfunding through social networks for experiments in alternative systems of sustainable
Company No:9456728
t: 07808168562 e:[email protected]
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agriculture. Matt is also an arboriculturalist and currently working on establishing a commercial nursery business for
propagating fruit and nut trees, as well as a variety of more exotic and unusual plants.
Jackie Carpenter BSc (Hons), CEng, MIMechE: In 1972 Jackie graduated from University College London with a
mechanical engineering degree. She became a chartered mechanical engineer in 1987, and then the most senior
woman engineer in Brown and Root. In 1995 she helped found the charity Energy21, and was MD for ten years,
promoting community renewable energy. She was President of the Women’s Engineering Society from 2002-03 and a
judge for the Government's Clear Skies renewable energy fund 2004-06. In 2007 she moved to Cornwall to help create
a new sustainable community, Trelay Cohousing, where she still lives. She is a freelance writer, speaker and consultant,
passionate about the Transition to resilient energy and local food systems.
Company No:9456728
t: 07808168562 e:[email protected]
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How will business growth be managed?
We need a residential membership of a least 6 people to take on the initial tasks involved in establishing the businesses
and applying for planning permission. We intend to spend the first year of the project, commencing in September
2015, to develop the businesses and rural enterprises by investing in equipment and infrastructure. The resident
members will collaborate on a voluntary basis to carry out the work involved in developing the project. There will be
certain tasks where remuneration for work done would be fair but it will be responsibility of the resident members to
budget for such expenses.
The sustainability of our business model depends on retaining enough members to share the financial overheads, the
task involved in developing the project and to achieve the production outcomes of our businesses. To do this we must
ensure that Red Pig Farm is an attractive and dynamic place for people to live as well as offering returns that will
attract further capital from the members and private investors.
It will take 2 - 3 years to establish the businesses on the farm and some will be profitable before others. Forestry and
wood processing will be the main focus of the start-up period as this will provide an income through woodfuel and
timber sales while also providing the resources to build the permitted infrastructure. We also intend to run courses
during this start-up period creating another source of income.
We will be applying for the forthcoming “Just Growth” funding from Funding Enlightened Agriculture(FEA) later this
year. This fund combines a loan and a grant each of £20,000 as well as ongoing diagnostic support. We also hope to
be eligible for grant funding from the Prince’s Countryside Fund and the Joseph Rowntree Trust for specific capital
costs involved in developing the proposed businesses and rural enterprises.
What are the social and environmental returns?
There are many social and environmental benefits that will come from this proposed development such as:
•
Provision of affordable housing for those seeking to pursue sustainable land based livelihoods
•
Opportunities to access land and opportunities in agriculture and agroforestry.
•
Retention, spread and development of resilient rural skills
•
Increased biodiversity and enhanced biological interactions
•
Carbon sequestration through agroecosystem management.
Company No:9456728
t: 07808168562 e:[email protected]
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•
Supply of local renewable sources of heat and power through innovative models of community owned
Energy Service Company (ESCo) thereby creating greater regional energy independence
•
Increased supply of local and zero-carbon food
•
Provision of educational opportunities in fields related to low impact development, outdoor education,
resilient rural skills and techniques and natural building.
•
Improved water catchment
•
Demonstration of examples of successful resilient livelihoods with low ecological footprint.
For more details on the economic, social and ecological benefits of the project see Appendix I of our Brochure.
What’s happened so far?
The company was registered as a non-profit company ltd by guarantee on 24th February 2015. Over the previous 6
months we were developing our vision for the project and researching the viability of our proposed business model.
We have been working closely with Jackie Carpenter of South West England Sustainable Enterprises (SWESE), Trelay,
who has guided us through the process of designing our governance and legal structures.
We have created our company governance structure augmenting the articles of association carefully designed by
SWESE Trelay and developing aspects of our secondary rules such as our business bye-laws and membership
agreement.
On 26th February we paid a deposit of £30,000 on the land to secure the purchase of the estate before August 31st.
We are in the process of opening a bank account with Triodos bank and discussing the potential of financial support
from this institution.
We are now members of the Low Impact Living, the Land Workers Alliance and the Permaculture Association. We have
created a website and published brochures and leaflets that we have distributed in these networks and beyond.
How has money been spent?
So far we have spent £743 on consultation fees, publicity, admin and the cost of registering the company with
Companies House. We have also put down £30,000 deposit on the land with an agreement that the deposit will be
refunded if we cannot raise the required funds to fully purchase the estate before August 31st 2015.
How will money raised by equity loans be spent?
The equity loans will go towards the purchase of the land.
Company No:9456728
t: 07808168562 e:[email protected]
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How will we afford to cover the running costs during the start-up period?
Our cash-flow forecast below is calculated on the basis of 6 people sharing the running costs during the start-up period
and into the first year of the co-housing project.
During the first 2 years the running costs will be low comprising mainly of the loan interest payments. For instance, in
2016 the total fixed and variable costs will be £4162. Shared between 6 people this totals £57 per month per person.
However, interest payments will be calculated at the end of the year and therefore we hope that the proceeds from
courses and wood sales would go towards part of this cost. After this two year period we will begin the loan
repayments therefore we need to have all prospective residential members confirmed and prepared to cover these
payments as part of their equity loan agreement. This calculate these payments to be an extra £166 per month, per
person.
Some of the members will be living elsewhere until the co-housing project formally begins. Other members may
choose to work with the ALI Natural Building Company that will be contracted to build the infrastructure. This will
allow to live in temporary accommodation while the work is being completed.
We intend to submit a planning application at the end of 2017 with the aim to formally initiate the co-housing project
in April 2018(for more information on our approach to planning see our Brochure).
After this the Residential Members will be paying the service charge that, in addition to loan repayments, will include
costs for food and vehicle expenses and so on. We estimate this total for those repaying loans will be £83 per week
per person.
Company No:9456728
t: 07808168562 e:[email protected]
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Budget
We hope to be successful in applying for the Just Growth programme from Funding Enlightened Agriculture (FEA) to
cover initial start-up costs. This will provide us with £40000 part grant and part loan.
Category
Amount
Description
Land Purchase (inc. tax)
£290,000
We have negotiated an offer for the land of £285,000 this will include stamp
duty of £4250
Start-up/Capital Costs
£33,500
These costs cover infrastructure and equipment.
Admin
£500
Setting up the company, and our related publicity and media presence.
Legal Fees
£1000
This is an approximate figure for the cost of conveyancing.
Consultancy
£1000
This figure allows for further business and financial advice.
Planning Application
£4000
This is an estimate for the initial application and includes, site surveys, maps,
soil and water tests and consultancy fees.
Cash-flow for Purchase and Development 2015 – 2016
Our cash-flow forecast is based on interest bearing loans of £230,000 charged at 2% p.a. with no repayment before
two years. However, this is a pessimistic forecast as we hope to be raise more investment from resident members.
Incoming
Quarter
Investment
Service charge
Wood sales
Total
1/15 - 3/15
£30,000
£31,000
4/15 - 6/15
0
7/15 - 9/15
£300000
£300000
10/15-12/15
1/16 - 3/16
4/16 - 6/16
7/16 - 9/16
10/16-12/16
£1149
£1149
£1149
£1149
£1149
£1149
£1149
£500
£1649
£1149
£1500
£2649
4/16 - 6/16
7/16 - 9/16
10/16-12/16
£1149
Outgoing
Quarter
Land Purchase
Stamp Duty
Consultancy &
Legal Fees
Loan Interest
Payment
Start-up costs
Running Costs
Contingency
Total
Net
Balance
Company No:9456728
1/15 - 3/15
£30000
4/15 - 6/15
7/15 - 9/15
£255000
£4250
£1500
10/15-12/15
1/16 - 3/16
£500
£1149
£1149
£1149
£1149
£2000
£666
£500
£4315
£6000
£4000
£500
£8149
£500
£5649
£500
£1649
-£3166
£19386
-£7000
£12386
-£4000
£8386
£1000
£9386
£500
£126
£122
£30626
£122
£500
£261250
£15000
£500
£500
£17149
£374
-£122
£252
£38750
£39002
-£16000
£23002
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Investor returns
There are no interest payments on an equity loans. This investment provides the Residential Members with a secure
living space and a means to build their own low-impact home with the mutual aid of co-sufficient community.
What could go wrong?
This business model relies on having a committed membership base. If we can’t find enough active residential
members it will be difficult to maintain the viability of the project. Therefore, seeking skilled and determined
residential members is a high priority.
Of course, there is the risk that some of the businesses will fail. The success of these enterprises relies on our ability
to market the products and services we are offering. We are fortunate in that the current owner has offered his
guidance to help us establish these businesses over the first 5 years (for an overview of the proposed businesses see
Appendix II).
If we are unable to attract sufficient members and the businesses fail, the fall-back position is to sell the property.
There are several other interested buyers at the moment, and the indications are that the land and property will retain
its worth and is likely to appreciate in value through the addition of the infrastructure we will build in the first two
years.
For more detailed information on how we plan manage risk see our Risk Statement in Appendix III.
Contact Us
Agroecology Land Initiative
Werndolau Farm,
Golden Grove, Dyfed,
SA32 8NE
[email protected]
www.agroecology.co.uk
07808168562
Company No:9456728
t: 07808168562 e:[email protected]
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Appendix I: Member Equity Investment FAQs
How much money can I invest?
You can invest anything up to the value of your living space. We have determined that the first six living spaces at Red
Pig Farm to be of a maximum value of £50,000 if planning permission is granted. This does not mean you cannot invest
more money into the company but it will be as a private investor with an interest bearing loan agreement.
What if I want my money back?
Your investment will be an equity stake in the assets of the company. If a Residential Member wishes to leave they
can request for their investment to be returned. This means that they would have to find additional investors to “buy
them out”, the alternative being that the company would have to take out loan finance with a private investor or
through a flexible business loan with a financial institution. You would effectively be selling the equity certificate plus
any value you feel you have added to the living space. As in any sale the amount would be determined between the
buyer and the seller. However, we provide regulations to curtail excessive property value speculation thereby
maintaining affordability of living as part of our cohousing community.
What happens to any “uplift” in the value of the property?
This is a complicated issue but the value of the equity of the company is determined by the members. They must
decide how added value through work done to the property is calculated equitable distributed between members.
Our Land Valuation Policy sets out the parameters for these calculations.
What could go wrong?
The value of the investments is secured against the value of the property. So, if a majority of investor members want
to leave then the company might have to sell the property to reimburse their investments. Therefore, it is important
that the members are committed to the Objects of the company and the Membership Agreement.
There is also the possibility of not obtaining planning permission but similarly an equity investment is held against the
value of the assets, the land, so if we are unable to obtain planning permission we will sell the land and reimburse the
investment. For more information on how we plan to manage risk see our Risk Statement in Appendix VI
Company No:9456728
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Appendix II: Explanation of Member Rights and Responsibilities.
The ALI is a not-for-profit co-operative company limited by guarantee; once you become a member, you join the group
of people who collectively own the ALI and decide how it should be run. Members can attend and vote at our general
meeting, and have a right to become a director. Members have access to all of the Co-operative's records, such as
meeting minutes and annual accounts. All members share the responsibility to further the Objects of the company
(the overall objectives of the company) and uphold the Membership Agreement. They may also benefit from the
provisions of the Objects of the company such as access to affordable housing and land for the development of
agroecological livelihoods.
Membership of the co-operative is a necessary but not a sufficient condition to be a Resident Member of the
community farm. Some members may want to offer their skills and experience to the co-operative, use the land in
some way or participate in one of the company businesses without living as part of the co-housing community at Red
Pig Farm.
Therefore, our governance structure allows for two types of membership:
Co-operative Members – technically “full” members of the co-operative with all the rights and responsibilities
provided for by the Articles of Association and Membership Agreement.
Residential Members – full members of the co-operative but also cohousing licence holders with a right to a living
space on the co-sufficient community farm.
To become a Residential Member one is additionally required to agree to a Community Covenant that describes the
shared values and beliefs of the community and to follow any bye-laws for the farm which are mutually agreed by the
community. A Residential Member also has an Equity Loan agreement with the co-operative as part of their cohousing
licence.
Decisions with regard to the day-to-day and ongoing management of the farm are made through a regular
management meeting of all residential members. This management meeting is technically a sub committee of the
company. This means that decisions concerning the community farm can be made on a weekly basis without having
to convene a general meeting of all Co-operative Members, reserving co-operative general meetings for decisions
related to legal, governance and finance issues of the company.
If a Co-operative Member decides that they would like to live on the farm and there is a living space available to them,
they may apply to join the community. This will involve a process of living with the community and renting for a period
of at least six months after which it is decided between the members whether they should join the community.
However, it must be noted that as the Red Pig Farm community is still in a formative stage the community covenant
and bye-laws have yet to be created therefore members wishing to join must understand that they will be participating
in this emergent process of forming these community agreements over the first two years of the project.
Company No:9456728
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Appendix III: ALI Company Objects
The Objects for which the Company is established are:
a. to acquire, provide, construct, improve and manage housing and community facilities on the co-housing
principle for the benefit of the Company’s Members through the provision of rooms or individual dwelling
units on either a rental basis or a purchased leasehold basis.
b. to provide, on the co-operative principle, land or buildings or renewable energy systems or locally organically
grown food or shared equipment and facilities for purposes connected with the requirement of members of
the Company; and the maintenance and management of common areas and facilities.
c. to demonstrate and provide educational facilities for the purpose of the advancement of public knowledge in
connection with all aspects of ecological and sustainable living including, but not limited to, the conservation
of natural habitats, the protection of species, the minimisation of waste, the development of sustainable water
and sewerage systems, the development of sustainable energy systems, eco-building techniques and
principles, organic and sustainable agroecological food systems with good husbandry and compassionately
kept animals and plants, and ethical community living.
d. to advance the education of the public and to promote research into all aspects of sustainable development
(where “sustainable development” means development that enhances the quality of life for all without
damaging the environment or the ability of future generations to meet their own needs); regenerative
economics (where “regenerative economics” means the design and application of economic systems that
regenerates the resources on which that economic system depends); Food Sovereignty (where “Food
Sovereignty” means the right of peoples to healthy and culturally appropriate food produced through
ecologically sound and sustainable methods, and their right to define their own food and agriculture systems);
and agroecology (where “agroecology” means the application of ecological concepts and principles to the
design and management of sustainable food systems).
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Appendix IV: ALI Membership Agreement
The Company agrees to uphold the Member's rights:
●
to share in the benefits that the Company provides.
●
to participate and benefit from the co-operative activities of the Company.
●
to be a Director of the Company.
●
to be provided with educational and training opportunities in co-operative values and principles and
associated topics.
●
to have full access to all Company meetings
●
to have full access to all information regarding the financial and business activities of the Company.
The Member agrees:
●
to uphold the values and principles of the Membership Agreement
●
to abide by the Agreement of Respect and the Company Conflict Resolution Process.
●
to further the objects of the Company.
●
to follow the rules of the Company as proscribed by the Articles of Association of the Company and
associated Bye-laws.
Values and Principles
Consent to uphold these values and principles is a condition of membership to the Agroecology Land
Initiative as they are intended to serve as a guide in the collective decision making process we adhere to as
members.
Home
We will work together to build homes founded upon systems designed to be economically self-reliant and
ecologically regenerative.
We believe we should be able to choose the economic systems that our home depends on.
We want our homes to be free from economic systems that are exploitative, degenerative or oppressive.
We want our homes to actively contribute to the regeneration of the surrounding ecology.
We believe that the Sovereignty of the home is the foundation of a free and just society.
Community
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We want to create a vibrant and dynamic community through a co-sufficient mutually supportive economy.
We value the co-sufficient interdependence of living in a community as the most resilient way to build a
home.
We understand that open and honest communication is the basis for trust. We will seek to make collective
decisions through a process of consensus decision making.
We have respect for other beings both human and more than human, we have respect for the land we
share and the environment we create together. This understanding forms the basis of our Agreement of
Respect.
We appreciate that conflicts may arise but through resolution we grow stronger as a community. We are
thus committed to an agreed Conflict Resolution Process.
Land
Land is not a commodity. The land is a resource for all, both human and more-than-human beings.
We are committed to developing models of shared land use and ownership.
We will practice methods of land stewardship based on the principles of agroecology and apply these
principles when making decisions about developing the land we use.
Our principles of agroecology are as follows:
1. Recycle nutrients
2. Build soil
3. Minimise losses from a system
4. Optimise diversity
5. Enhance beneficial interactions
Food
All people have a right to healthy nutritious culturally and regionally appropriate food. We will endeavour
to produce as much of our own food through our own efforts as possible. When making decisions and
choices about the food we produce, eat and share we will consider the principles of food sovereignty
1. Focuses on food for people: The right to food which is healthy, culturally and regionally appropriate is the
basic legal demand underpinning food sovereignty. Guaranteeing it requires policies which support
diversified local food production in every region and respects the fact that access to healthy food is necessary
for our sense of security.
2. Food is not simply another commodity to be traded or speculated on for profit it is a basic human need and
equal access to the means to meet this need is fundamental for a healthy community.
3. Values food providers: Many smallholder farmers are marginalised and people are often discouraged from
the possibility of land based livelihoods by central government and agribusiness. Agricultural workers can
face severe exploitation. Food sovereignty asserts food providers’ right to live and work in dignity.
4. Localises food systems: Food must be seen primarily as sustenance for the community and only secondarily
as something to be traded. Under food sovereignty, local and regional provision takes precedence over
supplying distant markets, and export-orientated agriculture is rejected. The ‘free trade’ policies which
prevent sovereign countries from protecting their own agriculture, for example through subsidies and tariffs,
are detrimental to local economic resilience and therefore also inimical to food sovereignty.
5. Puts control locally: Food sovereignty places control over local resources in the hands of those that use them
to be used and shared in socially and environmentally sustainable ways which conserve diversity. Such
resources should not be privatised but model of shared use and ownership should be developed from the
ground up.
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6. Builds knowledge and skills: Technologies that undermine food providers’ ability to develop and pass on
knowledge and skills needed for localised food systems are rejected. Instead, food sovereignty calls for
appropriate technology, education and research systems to support the development of agricultural
knowledge and skills.
7. Works with nature: Food sovereignty requires production and distribution systems that protect natural
resources and reduce greenhouse gas emissions, avoiding energy-intensive industrial methods that damage
the environment and the health of those that inhabit it.
Health
Our understanding of the meaning of sovereignty is grounded in our relationship to our body.
We share a desire to achieve a healthy and fulfilling life dwelling in harmony with our surrounding ecology
with reverence and gratitude. Our perception is that our individual health is reflective of the health of the
community we are a part of, whilst the health of the community is in turn dependent upon both the health
of the soil, and the strength of the relationships within it.
Living in accordance with the principles of food sovereignty and agroecology will restore and maintain our
health and the health of the communities to which we belong.
Technology
We are committed to using, developing and promoting appropriate technology.
We understand appropriate technology as a tool or technique that is conducive to freedom and conviviality
and its acquisition and implementation is in accordance with the values and principles of this agreement.
Energy
We will endeavour to preserve, catch and store sources of energy where possible.
We will work towards the reduction, over time, of our dependence on non-renewable energy sources to a
practical minimum. Any use of fossil fuels will be monitored and quantified.
We will apply a criteria for determining the embodied energy (Emergy) of any economic input. We
understand that Emergy is a concept that extends qualitatively as well as quantitatively.
Work should be valued according to the quantity and quality of energy input.
Materials
We will endeavour to produce no waste by minimising waste and ensuring that we recycle and re-use waste
materials in other productive systems.
We value all our resources and seek to apply regenerative practices in our resource use.
We will work towards the reduction of our dependence on goods and materials that are produced through
degenerative economic practices.
Company No:9456728
t: 07808168562 e:[email protected]
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Appendix V: Businesses and Rural Enterprise
Below are some of the proposed business activities and rural enterprises of the ALI that we plan to develop at Red Pig
Farm. The management and governance of businesses operating on the farm is described in our company business
and rural enterprise bye-laws which balance our desire to encourage entrepreneurship while also maintaining the
principles of co-operation, reciprocity and integration.
ALI Energy Services Company (ESco)
The ALI ESCo will provide services in consultation, feasibility studies and implementation of renewable energy
technologies from an agroecological perspective and pioneer an action research project into the viability of such an
approach to evaluating and managing renewable energy initiatives as a means of contributing to regenerative rural
development.
In establishing the most sustainable and regenerative woodland management strategies for Red Pig Farm we want to
explore innovations in biomass production and processing within the context of the principles our agroecological land
management practices.
To enhance the market conditions that would favour a localised biomass production model we will work with local
community groups to establish a model of Energy Services Company (ESCo), to supply and distribute woodfuel
products from Red Pig Farm and other local woodlands thereby maximising the benefits for the local economy.
ALI Natural Building Company
This enterprise will utilise timber and material from the land and locality to build the planned infrastructure at Red Pig
Farm and the proposed mobile cabins that will serve as the temporary low-impact accommodation for the residential
members.
This enterprise will be a licenced ALI business. Registered as a workers co-operative limited by guarantee members of
the ALI we have the opportunity to join this company and participate in building projects.
Led by Sara Tommerup, all construction design will follow specific principles of natural building with regard to materials
and technique. Specialising in straw bale buildings, cob, timber frame and rocket mass heaters the company will also
create revenue streams for the farm by taking on building projects both regionally and nationally and through the
construction and marketing of the mobile wood cabins.
The ALI Natural Building Company will also build and maintain a wood processing and carpentry workshop at Red Pig
Farm with a small scale saw-mill powered by the on site hydro-electric generator.
Local Food Distribution: Black Mountain Food Hub
Using newly developed Open Food Network software we will create a local organic food distribution enterprise linking
other local producers with consumers in local towns and villages. Based on the model pioneered by Stroudco and the
Dean Forest Food Hub we will provide a web platform for an online farmers market with local pick up points for
customers to collect their weekly order of local produce. We will charge a mark-up of just 15% keeping costs low
through our online ordering system.
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Led by James Scrivens, co-founder of the Dean Forest Food Hub, a local “Black Mountain Food Hub” will be relatively
simple and inexpensive to get started. We intend to establish this as a model of social enterprise utilising a multistakeholder co-operative governance structure balancing the interests of the workers, producers and consumers and
encouraging greater co-operation and participation in the local food system.
We are also collaborating with an emerging Llandeilo CSA project currently in negotiations with Roger Hallam of
Organics-to-go, a 4 acre market garden business with the view to buying out the business and transferring it into cooperative ownership.
Agro-Char: “The Needfire of the Soil”
We believe that the application of charcoal in food growing and agroforestry systems has many outstanding short
term and long term benefits for agroecosystems management.
We will carry out research into the possible advantages of its application in water catchment systems and
agroecosystems contributing to the growing depth of research into this agroecological technique.
We will utilise ways to capture and use the waste gases and excess heat produced in the making of “biochar” to the
benefit of the other rural enterprises at Red Pig Farm, ensuring that the charcoal we produce is a by-product.
Furthermore, by working closely with the ALI ESCo we will research the feasibility of providing biochar producing
heating systems for local farms and housing.
We will establish the organisation as a co-operative consortium thereby allowing for a number of charcoal producers
to work with us and share the administrative, marketing and distribution infrastructure. Using the Agrochar “brand”
we will then market 5Kg and 10kg bags for horticultural use at approximately £3-£5/kg and wholesale to farms
£1.10/kg with a minimum order of 500kg.
Mycogeneration
Utilising the existing facilities at Red Pig Farm, Mycogeneration will develop the capacity for the cultivation of gourmet
and medicinal mushrooms for local and national markets while researching areas of applied mycological such as
mycoforestry, mycoagriculture and landscape mycorestoration.
Initially the business activities will focus on the cultivation of oyster (Pleurotus ostreatus) and shitake(Lentinula edodes)
mushrooms supplied locally fresh and dried for regional and national markets. Alongside this we are excited about
marketing a brand of immune enhancing tea utilising a blend of turkey tail mushroom (Trametes Versicolor) birch
polypore (Piptoporus Betulinus) and selected herbs and spices.
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These particular species grow well on birch wood and fortunately the natural regrowth in the woodland is
predominantly birch. Shitake also grows well on birch and we estimate that with a 500 log inoculation operation with
a four year rotation we could obtain a revenue of over £3000 per year.
We will also construct two grow rooms in the first two years of the project using a log and turf roof structure based
on a traditional design known as a Burdei, common in Eastern Europe. This is a low cost design amenable to the
insulative and humidifying requirements for mushroom formation. Once we test a method of producing mushrooms
using these grow rooms we plan to sell the production model to other farmers. Building the grow rooms and then
supplying the substrate or inoculant on a contractual basis.
Heating is a requirement during the process of mushroom production. We will therefore utilise the heat capturing
technologies developed through Agrochar thereby demonstrating a synergistic benefit between these two rural
enterprises.
Fermentum
A fermented/probiotic food products start up, marketing sauerkraut, kimchi and other fermented foods, condiments
and beverages. Using the new to food processing barn we will prepare the fermented food products and store them
in specially design underground storage units that will maintain a constant temperature.
Once fermented we will decant the product into smaller containers for local, regional and national markets.
Working with Claymedia based in the Forest of Dean we will also sell custom made fermentation crocks in 5l, 10l and
20l sizes with a retail value of £25, £40 and £55 respectively.
We aim to use traditional methods of food fermentation and we will also run courses in traditional food preservation
techniques.
Perennial Futures: “Seeds and Rootstock for Perennial Cultures”
Through our research into the efficacy of applying perennial crops in agroecosystems we intend to actively promote
permaculture as an ethical design framework and an innovative approach to ecosystem management. We will focus
on the cultivation and distribution nitrogen fixing shrubs and trees and supply particular types of perennial vegetables.
We will then actively market these species to farmers and growers with advice and statistically backed research.
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Perennial Futures will also be the enterprise through which we actively promote permaculture as an ethical design
framework and an innovative approach to ecosystem management, creating a showcase forest garden at Red Pig Farm
and run permaculture design courses.
Tan-y-Garn “Eco Heritage” Campsite
Red Pig Farm lies below the ancient Iron Age hill fort of Y Garn Goch. We hope to attract visitors to the area that have
an interest in the cultural heritage of the region within the context of the Fforest Fawr geopark that consists of the
western part of the Brecon Beacons national park. To this end, we plan to create an "Eco-heritage" campsite to that
will facilitate the objectives of the geopark to encourage sustainable tourism.
The campsite will also help to facilitate our educational aims to share skills and knowledge of low impact development
and agroecological land management practices by providing accommodation for participants during the length of a
given course.
We will apply for the minimum 10 space campsite licence situated in a secluded part of the woodland. The visitors will
be serviced by a state of the art composting toilet and solar shower. They will have access to a designated fire pit and
barbeque area and be able to choose to pay for meals from the communal kitchen or order their own locally produced
food through the Black Mountain Food Hub.
Courses and Workshops
All of the above businesses will be developed as models of rural enterprise to increase the viability of low-impact living.
We will share these skills and provide training so others can adapt these practices to similar projects.
When we are fully established we will aim to hold up to 4 courses per year for 10 to 15 participants at a time. We are
currently planning a hydro electricity workshop running in the autumn later this year to coincide with the installation
of our hydro electric generator.
Furthermore, as part of a national fundraising campaign planned for the autumn of this year we are offering courses
throughout 2016 as rewards for donations or micro loans. These include a 1 day grow your own mushrooms
introductory course; a 2 day fermentation course; 3 day soil regeneration looking at root formation and soil structure
with examples of soil building techniques, the use of charcoal and hands on practical elements of compost tea
preparations; a 5 day timber framing course; and a 5 day Straw bale building course.
Company No:9456728
t: 07808168562 e:[email protected]
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Appendix VI: Risk Statement
We have identified four principal areas of risk: planning, people, business, and finance.
Planning
Risk: Refusal of Planning Application
The land is situated in Brecon Beacons National Park albeit only just within the western edge of the park boundary.
This potentially presents more challenges in relation to obtaining residential planning permission as the National Park
has its own planning authority with strict regulations about development in the park.
However, the BBNP planning development is supportive of rural enterprise and sustainable development and Red Pig
Farm has already been granted planning permission for several enterprising buildings, one of which won an award
from the planning authority.
Furthermore, the National Park is still bound by the TAN6 guideline for OPD, referenced in section 7.8.5 of the BBNP
Planning Development Statement.
We also strongly feel that our proposal would benefit the Fforest Fawr geopark status of the western part of the
Brecon Beacons. Particular with regard to our design for an “Eco-Heritage” campsite.
If we are refused planning permission we have a right of appeal. We need to ensure there are no material grounds to
turn the application down. Often from the point of view of the planning authorities the weakest areas in low impact
rural enterprise are the economic arguments and financial projections. This is why we are giving ourselves 2 years to
build up the business model so not only will we have a working example of regenerative rural enterprise that could be
improved through residential planning permission but also have first-hand evidence of the market potential of our
proposed businesses.
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People
Risk: Failure to attract enough skilled Residential Members.
We need a diverse skill set within the residential members to secure the co-sufficient objectives of the project. We
need to make the farm an attractive and inspiring place to live to encourage skilled and committed people to join us
in this endeavour.
A membership agreement process will ensure that members are starting on the same page respecting the foundational
values of agroecological principles and that people have the right skills and motivation to undertake the projects
necessary to sustain a livelihood from the land.
Risk: Discontent and conflict between Residential Members
The other side of finding the “right” people is the potential difficulties that can arise between people when they live
and work closely together.
We are aware of the importance of a commitment to a consensus decision making model and a strength of shared
intention to achieve specific outcome. We believe that by creating a process for the Residential Members to create a
community covenant over and above the membership agreement will engender a depth of understanding within the
community and a willingness to overcome difficulties.
Business
Risk: Failure to find sufficient access to markets.
We could make a diversity of products from the resources the land offers but this becomes a wasted effort if we can’t
find a sufficient market to sell them. Therefore, market research is a very important aspect in our business planning.
The two year start-up period is an important time for us to spend networking locally and regionally and adjusting our
business ideas. Using shared administration and marketing, as well as setting up a food distribution network will help
safe guard the market for our products as well as minimising costs.
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Financial
Risk: Failure to find enough capital investment from residential members.
If we don’t find the prospective residential members with capital to invest as equity loans then we will have to borrow
more money through private interest bearing loans or a business mortgage. This means a greater cost of borrowing
that will be passed on the Residential Members.
Risk: Failure to achieve our funding targets.
We intend to raise at least 20,000 through crowdfunding as a source of match funding for the forthcoming Funding
Enlightened Agriculture (FEA) Just Growth programme. If we fail to qualify for this funding then we will have to borrow
more money or scale down our capital cost requirements.
Company No:9456728
t: 07808168562 e:[email protected]