drip fund
TRANSCRIPT
Our Goal
• Solve Global Water Scarcity & Food Security – Validate model in California, Texas, and Kansas – Re-‐apply model globally
Freshwater use in California
Source: California Department of Water Resources California Water Plan. hSp://www.californiawater.org/docs/CIT_AWU_Report_v2.pdf
33.2 Million Acre Feet (10.8 Trillion gallons)
Flood Irriga[on (6 AF/Acre)
Sub-‐Surface Drip Irriga[on (4 AF/Acre)
SDI reduces water consump[on by 30% and increases yields by 20-‐25% due to reduced water logging
Technology Solu[on: Convert to SDI
Problems with adop[on
• Heavy resistance to adopt new irriga[on technology – 17 years to adopt center pivot in Nebraska (even with a < 3 year payback)
– Educa[on problem: Owners with 5,000+ acre farms and low water costs don’t know that drip’s core return is driven by increased yields and product quality
– Financing problem: Some farmers find it difficult to get financing on drip irriga[on equipment
DripFund Solu[on
• New model for customer acquisi[on – “Acquire” the customer through a sales-‐leaseback model • Gives farmer liquidity without taking away their job
– Install drip irriga[on system and educate grower how to properly use and maintain the system
– Re-‐sell property at higher valua[on in 2-‐3 years aler higher yield has been established for the farm