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Chris Rawley discusses the opportunities in agricultural investing through the Harvest Returns platform.
Interested In Learning More About This Opportunity?
You can visit the Official AltsDb Partner Page for Harvest Returns to:
- Learn more about Harvest Returns strategy;
- Learn key details about the project; and
- Request more information from the sponsor.
- An overview of Harvest Returns and Chris Rawley.
- The investment case for agriculture and the current state of the market.
- High level trends that are shaping the agriculture business, including preferences for organic foods and various diets.
- How stresses to the supply chain are impacting the ag industry, and how the ag financing industry is in need of innovation.
- Historical performance and correlation of investments in U.S. farmland compared to other asset classes.
- Verticals of focus at Harvest Returns, including indoor ag markets, grass-fed livestock, and ag tech.
- Live Q&A with webinar attendees.
Harvest Returns was founded to facilitate capital raises for small to medium-sized farmers and ranchers while providing investors streamlined access to attractive opportunities in sustainable farming businesses.
Learn More About Harvest Returns
- Visit HarvestReturns.com
- Visit the Official AltsDb Partner Page for Harvest Returns to request more information
Jimmy: All right. So, our next presenter, and this is kind of exciting, I’ve never had one of these before. He’s actually in person here with me right now in my office. I’ll bring in Chris Rawley with Harvest Returns. Chris, you can take the chair here. Let me get your deck set up. There you go. Chris, you’re all set. So, please take a seat.
Chris: Great. Thanks, everybody, for coming today. And, Jimmy, especially appreciate you being here. Jimmy and I have known each other for several years, worked together on Opportunity Zone stuff, and both here in Fort Worth. So, it’s great to be online with you. Before I kind of get started, I wanna give you a little background on myself and my company, and then we’ll dive into why I think agriculture is, regardless of what type of agriculture, is a great investment, a great alternative investment.
So, by way of background, I’ve got kind of a diverse background. Been a career naval officer, worked in tech, worked in commercial real estate, but kind of my passion has always been investing. And I’ve been in alternative assets for various types for about 20 years, everything ranging from commercial real estate to crypto more lately, but especially, since around 2014, in agriculture. And when I decided that I wanted to invest in a farm, it turns out there weren’t a lot of good ways to do it. There were very few platforms back five or six years ago that enabled you to do that. And so I got together with my partner, Austin Maness, and we decided to start a company called Harvest Returns back in 2016, which enables people to get into a variety of agricultural investments. We like to call ourselves the one-stop-shop for ag investing with relatively low minimums, and hopefully, an easy way to do it.
So, with that, I’ll go ahead and start my presentation. I’m gonna just talk a little bit about the agricultural market. What’s going on in agriculture industry. We’re really undergoing a major change in agriculture right now. It’s much more so than any other time in history since probably the 1950s when agriculture sort of industrialized with large-scale farming, and chemicals, and mechanizations, and things like that. And now we’re looking at an entirely new generation of farmers, and ag producers, and ag production methods. And it’s all being driven by technology, but also consumer preferences.
And you can see the little word cloud up on the top right, and that demonstrates some of the types of fragmentation that is fairly recent, actually, these developments. So, consumers want to know where their food is produced, how its produced, the mechanisms by which it’s produced, and they’re looking for very specialized types of food and ag production. Organic is obviously popular if you walk through any sort of produce aisle in the supermarket. But the diets are driving people of like plant-based diets, also keto and protein-based diets.
And then, of course, locally grown is a big deal that we’ll talk about a little bit further that we’ve invested in, but also based some of our investments on. So, at the same time, agriculture is having to rapidly adjust. You’ll see here some representations of indoor greenhouse production, which is one of the investments that we offer on the platform of various types. But we’ve also seen ag tech becoming increasingly popular. I’m gonna talk about that a little bit later.
So, anybody who has been in the grocery store in the past 18 months or so has probably seen some empty shelves, especially in the meat aisles, in the produce aisle. COVID-19 has kind of revealed some of the weaknesses within our food system and food distribution system here in the United States. And that all stems from a couple of different things. One is that food production, for the most part, is very centralized in the United States. Most of the leafy greens we eat are produced in California, specifically parts of like Salinas Valley, California, where there are things like labor issues, and water scarcity issues. At the same time, you’ve got some of the livestock processing facilities at the height of COVID last year were shut down, and that created, due to workers having COVID and labor shortages and things like that, and that created some shortages on the shelves. So, all this food that’s produced has to get shipped cross-country, and with the supply chains and trucker shortages and things like that, it’s increasing the prices of food and we’re seeing rapid food inflation.
Before I go on the next one, you know, the one thing that really hasn’t changed in the ag industry is the ag finance industry, the ag finance piece. Most of the farmers and ranchers out there go out to their local ag credit union and get USDA subsidized loans. And that’s, at first glance, you think, oh, there’s nothing wrong with that system. It’s been about that way for 50, 70 years. Well, it turns out, if you’re doing one of these new things like trying to develop an indoor greenhouse, or a vertical farm in an urban area, there’s not a really strong financing system. The banks just don’t understand it, they don’t understand the risk profiles. So, that’s the other part of our business is actually helping farmers and ranchers fund their farms, and we do that through our pool of investors.
So, I don’t need to tell people that signed up for this that right now the markets are pretty frothy. You can see this as just one measure of market frothiness, the Buffett Indicator, corporate equities to GDP, and it’s as high as it’s ever been recorded. And this next slide is, to me, the scariest slide. I saw this about a week ago and decided I needed to talk about it. This is margin debt. And so, you know, what’s driving this margin debt? Well, obviously, people are taking advantage of cheap money and going out and finding either purchasing stocks, or crypto, or whatever they’re purchasing, they’re doing a lot of it on margin. And so this is a bubble if there’s ever been one.
So that’s why we are interested in alternatives, specifically agriculture. And we see several primary reasons why you should consider agriculture as an investment. So, the first is demographics. Obviously, the world population is growing. It’s gonna be somewhere between 9 and 10 billion people by 2050. At the same time, as populations become more wealthy, they consume more protein, and that protein and those calories obviously require more agricultural production and agricultural land, arable land is becoming more scarce as well.
So then there’s purely the return aspect. So, the little graph on the right shows U.S. farmland, which is one small piece of the agricultural investment sphere, compared to several other metrics, Gold, Triple-A bonds, S&P 500. And you can see that, over the long term, U.S. farmland has outperformed all of those. The second, or the third reason would be safe diversification for portfolios. So, there’s a reason why, for the past 30 or so years, pension funds, university endowments, and very-high-net-worth people like Buffett and now more recently, Bill Gates, are investing in large tracts of farmland and agriculture. It’s because it’s a way to diversify their portfolio. These assets are not correlated with the equity markets and fixed income bond markets. So, professional investors everywhere have been in this asset, but up until very recently, it’s been challenging for retail investors to access.
And the final reason to get into agriculture is to vote with your dollars on improving the food system. So, whether you’re looking for more sustainable production from an environmental standpoint. Regenerative agriculture is one of the things that we like where that essentially consists of taking soil that’s been depleted by manmade activities and using various types of agriculture, whether it’s livestock, or crop production to improve that soil and bring that soil back to life.
So, we have several verticals that we focus at in Harvest Returns. And the first of these is the indoor ag market, otherwise known as controlled environment agriculture. And you’re seeing a lot of this all over the country. And it’s kind of there’s two main flavors of indoor agriculture. One is large-scale greenhouses. These are multi-acre farms that are under glass that are producing food with sunlight, but it’s not necessarily food with soil. And the advantages of doing so are multiple. You can grow food year-round, you can have multiple crop cycles, where field-grown agriculture you might have one or two a year, you can have seven or eight a year indoors. You can also grow food with a fraction of the…produce with a fraction of the water consumption, maybe even 5% or 10% of the water consumption that field-grown produce takes. And finally, you don’t have the agricultural runoff that is causing things like, with fertilizer, causing things like the horrible red tides that we saw off the west coast of Florida this past year.
This is obviously a growing market, that’s why we like it. There’s a couple of unicorns that have come out from the indoor ag market. The second flavor of indoor ag that I mentioned is vertical farming inside often in urban areas where these are smaller-scale farms are producing food for that local population. So, when you buy leafy greens from a farmer, whether it’s in Birmingham, Alabama, or Dallas, Texas, or Omaha, Nebraska, and we have happened to have farms in all three of those areas, you are buying those leafy greens from that local farmer local production rather than having it shipped all the way cross-country from California.
The produce is fresher, the produce is more nutritious because it’s fresher. It’s getting to you on your table the same day it’s harvested, or within a day or so it’s harvested. And it’s also taking a fraction of what are called food miles, which is consuming a lot less fuel to get that food on the table. So, these local farmers we’re working with are growing food and they’re either selling direct-to-consumer, or they’re selling to restaurants and farmers markets and things like that. But we really like this type of indoor ag production. There’s sort of some offshoots from this, one is recirculating aquaculture systems. So, this is fish that are purely farmed indoors in essentially tanks that are very well controlled, and it’s a very sustainable method of growing protein versus trying to do outdoor or ocean-based fish farms.
The next thing that we really like is grass-fed livestock. We’ve done millions of dollars of deals on livestock, both cattle and sheep. When you go to a farm, you know, basically all cows will eat grass. So, all cows are grass-fed. The difference is how the farms or the cattle are finished, and that means basically fattened up before they go into processing and end up on your table as a steak. And so the grass-finished is what’s in the high demand right now where the cattle spends its entire, the livestock spends its entire lifecycle eating grass. There are some nutritional benefits. They say it’s lower in cholesterol. But this meat also goes for a premium. And if you ever found grass-finished beef from your butcher or your high-end grocery store. So we like it. A lot of it is being imported right now. So, we wanna help ranchers and farmers in the U.S. increase the production of grass-fed beef. And we’re doing something fairly unique that’s not out there anywhere else where we’ve got grass-fed livestock notes. Essentially you’re getting cattle with a fixed income return note anywhere from a one to three-year duration. And our investors really like that from a cash flow perspective.
And another vertical that we see is ag tech. All these new types of production, there’s what I call the shovel and pick companies that are producing the technology to produce agriculture. And there’s things like precision agriculture where you’re putting sensors, water sensors in the soil or in the fields that are helping a farmer get a better idea of how much they need to water. There’s obviously drone surveillance, like the picture here. Satellite imagery. And all this is being processed in the cloud. And farmers and these ag-tech companies are using artificial intelligence and machine learning. We recently helped fund a seed round for a company doing just that with cattle.
And they are helping combat food inflation, these investments, because you’re producing…basically bringing technology, bring farming into the 21st century. And it’s lagged other industries in utilizing internet and technology. And then, of course, you’re talking about growing more food with fewer resources as we go forward. So, these ag-tech companies, we’ve done several seed rounds in smaller ag-tech companies. Obviously, these are a little bit more speculative investments, but we wanted to offer them to our investors because it is a big part of the ag industry that’s previously only been available to people through venture capitalists or to venture capitalists. And now we’re offering that to individual investors.
And the fourth category, I don’t have a slide on it, is kind of what we call specialty crops. But we’ve done everything from vineyards, to bamboo, to recently did a hazelnut farm. And these are types of produce or types of crops that are not necessarily row crops. There are other ways to invest in agriculture out there. You can go and buy a farmland REIT. There’s some other platforms that allow you to invest in real crop. But we’re more interested in sort of niche farming methods that are really transforming the future of agriculture.
So, if you’ve made it this far, I wanna tell you a little bit about our platform, and what we do, and how you might invest. And I’d be happy to answer your questions. So, we’re like any other platform out there. You get to go in, register on the platform for free, there’s no obligation. You put in a little bit of personal information to be able to see the investments. These on the left there, there’s just a few of our investments. At any given time we’ll have between two to five offerings available on the platform. And our offering minimums are anywhere between 15,000, sometimes 10,000 up to 25, 000. So, we’re big on allowing people that have never invested in agriculture before to, in this asset class, to invest smaller amounts, kind of dip their toes in the water before they decide to commit larger amounts of money.
And we have all types of investors on the platform. High-net-worth, individual, family offices, people that are just…people with self-directed IRAs, people that are just interested in diversifying their portfolio. And the investment process is pretty straightforward. You go on there, you look at the investments, you set up a profile. You can set up an individual profile, you can set up a self-directed IRA profile, you can set up a trust or an LLC. We have people invest in all those different methods. You’re able to kind of review the offering documents and you can ask questions direct to the sponsor.
We’ll also have webinars, similar to this one, where you’ll be able to talk directly to the sponsor and ask questions about the offering and as you perform your due diligence. And then you can electronically sign your offering docs. You fund your investments via a wire check or ACH funding. And then your investment closes and operates. And one thing that kind of sets us apart from maybe some of the other platforms is we take a carried interest in these offerings, it’s how we make most of our money. So where our interests are aligned with our investors, we’re in these investments for the long term.
And some people will ask, you know, “What’s the duration of the investments?” It’s anywhere from one year up to 10 years or more, with most of them being somewhere in the middle there. And we’ll, of course, provide tax documents and updates on how the farm or the agribusiness is operating. And then you’ll receive distributions depending on how the deal is structured, and we’ll ensure you get those all electronically.
So, that is my presentation. And we wanna see if we have any questions. I think Jimmy is gonna help me with that.
Jimmy: Yeah. Let me slide on in here.
Jimmy: You can just back up just a little bit. Make sure we’re still on the screen. There we go. That looks pretty good. All right. We do have a few questions here. Do you mind if I exit? We’ll leave that up there.
Chris: Yeah. The best way to reach us is harvestreturns.com. So, obviously, we’ve got a phone number and email, you can get us. But we’ll go through the questions.
Jimmy: Yeah, so please do reach out, visit harvestreturns.com to learn more about Harvest Returns, their investing platform, and some of the offerings that they currently have. And you have some 506(c), but you also have some 506(b), or is it exclusively…?
Chris: Correct. So, we do do…
Jimmy: And talk about what that means, also.
Chris: Yeah. So, our offerings are Regulation D. So, I guess, technically, we’re a crowdfunding platform, but we’re not Reg CF. So we’re not doing retail investors, we’re not doing, you know, $100 at a pop sort of investments. Our investment minimums are fairly reasonable, we think, for this asset class, and we’re always looking to bring on more investors. But we do Regulation D 506(b) offerings, which will allow a certain number of non-accredited investors. And then Regulation D 506(c), which you have to be accredited. So we’ve got some questions coming in?
Jimmy: Yeah, we got some questions coming in. And again, if you do have any questions for us, please do use the Q&A tool in your Zoom toolbar toward the bottom of your screen or your app. First question comes in asks, “Are all available investments on the platform based in the United States?”
Chris: So actually, no. We have done a few overseas investments in a couple of different markets. And we intend to do more and more of those. We are approached by a lot of overseas companies. Of course, it’s hard to do the due diligence for us. But there’s one country in specific, Ghana in West Africa that we’ve done several offerings on and we’ve got some relationships there and some background, we’re very comfortable with the political risk there. But we will definitely be doing more international offerings.
Jimmy: Excellent. You spoke about this a little bit earlier. You can invest in farmland through a variety of ways. You can invest in a REIT, but yours is more of a direct holding investment. What are some of the pros and cons between those two different methods of investing?
Chris: Yeah, that’s a great question. So, a farmland REIT, there’s public and private REITs, but assume a public REIT. The main pro with that is liquidity. So, it’s traded on NASDAQ, New York Stock Exchange. You can buy and sell using your brokerage account. It’s easy to get in and out of a REIT. The cons are, because it is traded on a stock exchange, publicly-traded stocks of any flavor tend to be more correlated with the overall market. So, if the market takes a major correction, regardless of what asset class you’re in, people, especially because some of these stocks are held in ETFs and things like that, they tend to cause an outflow of funds.
With private placements, which is what we do, a form of private equity, there’s what’s called an illiquidity premium. Because there’s some transparency in publicly traded companies and, you know, we try to be very transparent and have our sponsors be very transparent. But the reporting requirements are not the same, the audit requirements are not the same. So, because there’s that sort of inefficiency in the market also illiquidity, there’s also the potential for higher return. So, we’re a fan of private placements for portfolio diversification.
Jimmy: Absolutely. My partner in AltsDb and co-host of the “Alternative Investment Podcast” with me, Andy Hagans, was speaking about that illiquidity premium in his keynote address earlier this morning. If you missed that, we’re gonna have recordings of all of the segments from today’s event made available beginning, we might have the first few available tonight, and certainly by end of day tomorrow, we’ll have all those recordings available on our website at altsexpo.com. So, if you’re wondering if we’re recording this. Yes, we are. And all of the recordings will be made available within the next roughly 24 hours or so on that website. So, I encourage you to visit if you missed any segments, or if you wanna go back and re-watch anything. So, a few more questions coming in, we got a few more minutes. “What level of due diligence are you doing on investments before they get listed on your platform?”
Chris: So, that’s a great question. Sponsors come to us, they’ll usually start with a business plan or a pitch deck. We’ll take a look at that. Only about 5%, 4% to 5% of the offerings that come to us, and we’ve had thousands and thousands come to us, actually make it on the platform. And of those, approximately 85 or so get funded. Part of the due diligence process, kind of the last part of the due diligence process is the actual our investors themselves. So, because we pool investors, and then we invest as a single entity into these operating companies, if our investors don’t like the deal, that generally tells us something. It tells us that they’ve asked questions, or they have some sort of sense that this is not a good investment. And that’s kind of the last level of due diligence.
But that first level of due diligence for us is, once we engage with a company to list our offering on the platform. We’ll go through all the kind of typical things you might see for a private investment. We’ll obviously review their incorporation documents, make sure they’re in good standing with their state, their taxes. We’ll review their historical trailing profit and loss balance sheets, all their financial statements. If they have any, what’s called offtake agreements where they have an agreement to, you know, contracts to sell produce or sell cattle or whatever, we’re going to go through all those, make sure that they have these agreements in place. If there’s any debt in place, we wanna see those agreements.
So, we’re gonna do all that kind of typical due diligence. Then we’re gonna run…our third-party compliance provider is gonna run background checks and things like that, just to make sure that they are who they say they are and there’s no nothing kind of hidden in their background, tax liens, things like that, that would not make for a good investment.
Jimmy: Excellent. Excellent. A few more questions here. We’ve got a few more minutes. So, again, if you have any more questions, do feel free to submit them now. Now’s your chance. Matt asks, “What have your historical returns been?”
Chris: Good. So, Matt, because we’re doing individual offering, it’s hard for me to give you a singular answer. I can’t say we have, you know, 13% IRR. But I can say is we’ve done 34 raises successfully. We’ve had three exits. All those three exits were in debt. They were all on time, they were all to the targeted IRR. We’ve got, you know, across that portfolio of investments, we have some that are performing great. We had one or two that are not performing well at all. But, you know, out of kind of a bell curve of investments, we’ve got kind of what you might expect. So, don’t have a straight answer, but the three exits we have had have been as scheduled.
Jimmy: Excellent. So, the next question coming in here says, “What’s your typical holding period? Are there liquidity options like a put option after a certain amount of time?”
Chris: As I said, I have kind of a background in commercial real estate. So, a lot of these offerings are kind of structured like commercial real estate. We’re always looking for multiple exit opportunities for our investors. So, as the asset manager who our interest is aligned with our investors, we’re the ones that are gonna kinda drive that exit. The typical holding period for equity is anywhere between say two and eight years. And it’s based on either, say a development project, you’re building a large-scale greenhouse. There’s some capital expenditures upfront. And then once the thing is up and running, it’s just spitting out cash. So there’s the opportunity to either do like a cash-out refinance, a targeted IRR, or to cash us out at a targeted IRR through cash flow. But some of the investments, especially the ag-tech investments, where you’re actually investing in an early-stage company, you’re looking at a merger and acquisition sort of opportunity or a subsequent funding round.
Jimmy: Good. Another question from Matt. Matt, thank you for…I love your participation today. Great questions all day. If we awarded an attendee VIP award, it might go to you or you’d be in the running at least. So, thank you, Matt. And thanks everybody else for participating as well. Matt asks, “Can you elaborate a little bit more about your Ghana Green Gold Farms opportunity?”
Chris: I actually can’t in this venue, because that’s a Reg D 506(b) offering. But, Matt, we’d be happy to talk about that, I can take a call or we can take your email.
Jimmy: Okay. A couple more questions for you that I have. Just zooming out now, we were in the weeds for a little bit there, I wanna zoom out. What’s the case for, and I think you touched upon this a little bit in your presentation already, but what is the bull case for farmland, you know, heading into 2022 and then long-term beyond?
Chris: Yeah. So, if you’re looking at pure farmland, row crop farmland, you know, you go out to the Midwest U.S. and you see thousands of acres of soy, corn, things like that. It’s bullish right now. I would say it’s a little bit inflated. If you talk to some of the, you know, the farm manager, farmland managers, because so much capital has gone in there, a lot of institutional capital. There are some of these big farmland in REITs. There’s Bill Gates, Warren Buffett, you know, buying up huge, huge tracts. But over the long term, and historically, farmland itself has gone up. I think if you look at one of our niche is indoor ag, we’re very bullish about it. You’ve seen a lot of capitalization of these indoor farms, and I think over the next several years, you’re gonna see a lot of M&A activity. You’ve seen some SPACs go public and things like that with these large indoor operations.
Jimmy: And it’s about as essential of an asset class as you could possibly imagine, right?
Chris: Yeah. There’s two asset classes everybody in the world needs. Real estate, you got to have a roof over your head. And agriculture, you have to eat.
Jimmy: Absolutely. Couple more questions. The way we met is through our Opportunity Zone industry connections. I may have met you at a conference a while back. And like you mentioned when you first sat down, your office is here in Fort Worth, just a couple miles from where we’re sitting right now. Can you tell us a little bit about your Opportunity Zone Fund offering? Is it still open? When is it closed?
Chris: Yeah. So it’s actually closing really soon. So I’m glad you asked. Sustainable Agriculture Opportunity Zone Fund, it’s on the platform. You can read the offering documents, all those sorts of things. But currently, we’re closing December 15th, but it’s invested in an asset up in Omaha, Nebraska, called Gather Omaha, you can Google it right now. It’s an indoor farm in the basement of a really high-end restaurant with a very professional, experienced restauranteur. We like it because there’s instant offtake for the produce that comes out of the farm. Yeah, the Gather Omaha Indoor Farm. We still have some openings, $25,000 investment minimum, accredited investors only. So, we’d be happy to talk to anybody offline about that.
Jimmy: Okay. Fantastic. Well, I think that’s it. Okay, good. I just posted a link to it in the chat.
Chris: I was up there a couple of months ago, and it’s wonderful.
Jimmy: Tremendous. We’ve got a couple more minutes here. What about just challenges of investing in farmland?
Chris: So, I’d be remiss if I didn’t talk about risk. In any investment there’s risk. So, agriculture, you have the typical sort of operational risk where there might be financing shortfalls, or, you know, market shortfalls where agriculture tends to be a commodity-based business. So, if you’re investing in soy, and corn, and sorghum, and wheat, there’s futures traded on that. And the reason there’s futures traded is because there’s such a huge market. There’s a lot of volatility in the pricing. And people, investors, and farmers, and speculators use that to speculate there.
We tend to invest in non-commodity type of crops. Things like wine, and indoor produce, and things like that, and more niche-y sorts of ag businesses. So we don’t necessarily see that volatility from a market price. And of course, you know, if you’re talking outdoor farming, there’s natural resource issues, or natural risk such as drought, too much rain, too little rain, insects, pesticides. When we talk to a sponsor, we wanna make sure that they don’t have, or that they’ve identified all their risk, and they have mitigation in place to try to address those risks. Whether that’s crop insurance, or the professional team or all those sorts of things that tend to mitigate risk.
Jimmy: Great. So, a lot of farmland on your platform, but some agribusiness as well. Explain that a little bit. What are some of the…? Maybe you have some examples you can share with us?
Chris: Yeah. So, you know, we started out purely as, we were doing production farming. And as we started to become more familiar with the asset class, bringing people and advisors that were more familiar with farming, one of the things we started to learn was that farmers extract very little value from the food they grow. So, USDA keeps up a statistic. For every dollar of food sold, it’s like 11% to 14% or 50 cents actually goes into the farmer’s pocket. So, one of the things we were excited about is working with farmers in agribusiness is they’re expanding their reach across that value chain of food. So, whether it’s a farmer or rancher that’s selling their…that’s processing their own beef, or paying someone to do processing and selling direct-to-consumer, where they can get a much higher price because they’re not going through a wholesale distributor, a processor, and a retailer. Most of our cattle operations or livestock operations…we did one called Capra Foods that sells really good lamb, dorper lamb. If you’re into lamb, go to Capra Foods. But to build processing facilities or build out a website to do retail sales. So, trying to create that value across the entire food value chain is important to us.
Jimmy: One last question just came in, and then I’ll cut you loose. I’ll let you get out of here. Anonymous person asks, “Do any of your offerings pay dividends?”
Chris: Yes. So, it depends. So, you know, some of them…our cattle notes are paying quarterly distributions on a regular basis, and they have been since they started. Most of them are gonna pay an annual sort of distribution because, you know, crops tend to be an annual revenue occurrence. So, it’s not like they can pay 12 months, they have to wait until the harvest happens. And then some pay on exit, especially some of the ag tech deals where you can expect to see an exit. But there’s a variety of different sort of risk-return profiles and distribution profiles. And yes, we do provide K-1s, that’s the form you’ll get for your taxes.
Jimmy: Fantastic. Well, Chris, I’ll cut you loose there. Thanks for coming in. You’ve never been to the home office here. Checking out the studio.