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The Ecological Land Co-operative

website:http://www.ecologicalland.coop

Possibility for investment

"The Co-operative is looking to raise a further £300,000 of share capital. It is able to sell both withdrawable and transferable shares, with a minimum investment of £500 and maximum investment of £20,000. The £300,000 will be used to purchase agricultural land and to develop the land into 6 ecological small-holdings. The business is still in development and no dividends have yet been distributed. The business model provides for an average annual return to investors of 6%, but investors can receive up to 80% of the Co-operative's profits, up to Base Rate plus 10%."
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Company details

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What does it do?

The Ecological Land Co-operative’s mission is to provide affordable opportunities for small-scale and ecological farming, forestry and other rural, land-based businesses within the UK. We are doing this by creating affordable sites with planning permission for ecological land-based businesses, with basic infrastructure, such as road access, communications and water.

How is it social?

Social returns will be partly due to the co-operative structure, which makes the business accountable to its main stakeholders.

The Ecological Land Co-op reports on the ecological impacts on all its property. This includes details of reduced carbon emissions resulting from the adoption of low impact lifestyles and the supply of local food with low energy inputs. The retentions and sequestration of carbon in the land are estimated by the company to yield an estimated 500g CO2 per year per £1 invested.

The scheme can also provide affordable housing and sustainable livelihoods for people on below average incomes. The firm estimates that one person each year will benefit for each £20,000 invested. This creates improved circulation of funds within the local economy, including the effects of new agricultural co-operatives, community supported agriculture schemes and other social enterprises. This is estimated to amount to approximately 25p per year per £1 invested.

Other social returns include the retention, spread and development of rural skills, opportunities for urban dwellers to participate in agriculture, improved animal welfare, biodiversity and habitats, and improved landscapes. All social returns will be assessed and, where possible, measured in an annual report.

What is its business model?

Ecological Land Co-operative has found that there is a shortage in the supply of affordable smallholdings in the market, as agricultural wages have failed to keep pace with property price inflation. The ratio of average bareland residential smallholdings to average agricultural incomes is in excess of ten to one in most parts of the country. The result is a substantial body of people who wish to farm an organic smallholding but cannot afford to do so. The firm is profitable because it will gain temporary residential planning permission for a polycultural smallholding, as part of a hamlet of three to six holdings. While this is consistent with government planning guidance, it is very difficult for private individuals to secure. The company believes it will be the only business in the marketplace offering this service.

Profit derives from gains made through planning applications, subdivision, rental and improvement.

Its history

The origins of the Ecological Land Co-operative lie in informal discussions in the spring of 2005 between members of the following organisations: Chaper 7, a planning consultancy with experience working with smallholders and ecological projects; Radical Roots, a secondary co-operative of co-operatives working for social change; Upstart Services, a co-operative development body; and Landmatters, a newly established community co-operative managing 35 acres near Totnes.

As an informal group, we applied for the costs of a feasibility study from the Co-operative Group in the South West, and this led to UpStart Services carrying out research into feasibility, investment and legal structures. This led in turn to further meetings and consultations, and a further successful application to the Co-operative Fund in spring 2007. This, along with grants from Polden Puckham Charitable Foundation and Business Link SW funded the development of our business plan, our first fundraising drive and finally to the launch of the project.

In November 2007 we registered as a company and in September 2009, we converted to an Industrial and Provident Society: a co-operative.

More information

Current shareholders:Shares are divided into three classes: Workers, Stewards and Investors. Investor Members have invested money in the Co-operative, Worker Members are those people that work for the Co-operative and Steward Members are ecological land managers that either have a leasehold agreement with the Co-operative or have been asked by the Board of Directors to become a Steward Member. As of October 2009, there are 3 Worker Members, 20 Investor Members and 7 Steward Members.
Chair:Alex Lawrie
Year of incorporation:2007
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Company snapshot

Company type:Cooperative
Address:The Hub, 5 Torrens Street, London, GB, EC1V 1NQ
Telephone:+44 (0)7963 955 338
Blog:
CEO:Zoe Wangler
Industrial sector:Residential and commercial property
Social / Environmental benefit:Climate change; Community development; Land conservation; Housing; Healthy living; Employee rights and welfare;
Certifications:Not Applicable;
Social business sector:Other;

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