mAgma believes using blockchain and its ‘smart contract’ token functionality will provide an increasing ability for people to easily buy and sell units in farmland investments. Smart contracts are useful because they allow the accounting, tax and legal administration to be automated through software, which in turn reduces cost and increases speed of each transaction.

1. mAgma accepts Bitcoin and Ethereum crypto currency for payment.
2. mAgma records investors’ units on the Ethereum blockchain in the form of a secure ‘smart contract’ token. Initially, investors will be able to see their secure tokens on the blockchain and in the future, mAgma intends to give investors the option to buy/sell tokens on the mAgma platform.
3. Investors are not required to use the blockchain functionality. In keeping with mAgma’s mission to increase farmland liquidity, blockchain capability is being offered as an additional option.

mAgma has contracted with Peoples Company, one of the largest farm management and land brokerage companies in the U.S., to manage the farms offered through mAgma’s platform. In order to optimize farm efficiencies and socially responsible practices, Peoples Company’s management responsibilities will include oversight of soil heath, agronomy, water drainage practices, optimal crop rotations, government crop insurance acquisition, consulting with the farm operator, and implementing sustainable farming practices. Peoples Company will manage the property according to the Leading Harvest Farmland Management Standard (the “Standard”). For more information regarding this Standard, visit LeadingHarvest.org.

Leading Harvest’s Standard addresses 13 Sustainability Principles:

1. Sustainable Agriculture
2. Soil Health and Conservation
3. Protection of Water Resources
4. Protection of Crops
5. Energy Use, Air Quality and Climate Change
6. Waste and Material Management
7. Conservation of Biodiversity
8. Protection of Special Sites
9. Local Communities
10. Employees and Farm Labor
11. Legal and Regulatory Compliance
12. Management Review and Continual Improvement
13. Tenant-Operated Operations

High quality, professionally managed U.S. farmland demonstrates consistent historical annual appreciation rates of 4%-7%. Peoples Company builds an annual business plan for each asset with its tenant, engaging the key management characteristics that drive long-term appreciation, including the principles of the Leading Harvest Standard. Soil health is managed through analytic methods that ensure management practices:

1. do not cause soil erosion;
2. implement cover crop and organic fertility practices that improve soil organic matter and biological function; and
3. grow soil fertility through data driven nutrient management.

mAgma farms will be managed using these principles, which will provide significant opportunity for capital appreciation. Additionally, the above-market net income expected to be produced on the farms will demonstrate a business model that can add capital value to the farms.

In addition, farmland is a unique asset class that carries low long-term risk profiles, and maintains low correlation with primary economic factors. Farmland also provides good diversification benefits due to the low or negative correlation of returns with equities and fixed income investments. These key factors, coupled with the asset class’ solid underlying economic drivers, including population growth, rising demand for food, and increasing wealth, make farmland an attractive investment.