Impact Idaho Fund Impact Report | June 2023

IMPACT IDAHO FUND REPORT

FIRST & SECOND QUARTER JANUARY TO JUNE 2023

Table of Contents INVESTOR REPORT

3 LETTER

4 ABOUT US

5 IIF FINANCIAL

6 THEORY OF

8 FUND AT A

16 FUNDED

19 PILOT FUNDED

23 PILOT FUNDED

27 PILOT FUNDED

30 REPAID LOANS:

31 APPROVED

33 FUTURE OF

CHANGE

COMPANY: LOOKOUT FARM

ITTY BITTY FARMS

GLANCE

COMPANY: SUSTAINABLE MEATS, LLC

COMPANY: KOBOREWA CORN MEAL

TEAM

COMPANY: IRONWOOD MYCOLOGY

COMPANY: WILD SPACES FARM

THE FUND

35 THANK YOU The beehive motif of hexagonal chains represents efficiency in the use of space and resources as well as honoring nature and natural patterns. Starting from a single structure, the beehive is infinitely expandable. SVIR’s programmatic work starts from a core and expands. As with the beehive, adding new elements (hexagons) builds on the strength and capacity of that core. In representing the infinite ability to expand, we are demonstrating the myriad of ways to build community resilience. We also represent the importance of collective work and collaboration inherent in building the structure.

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Letter Dear Funders, Your support of the Impact Idaho Fund has been critical to the mission of the Sun Valley Institute for Resilience. Over the years, we’ve seen firsthand how impactful bringing patient, flexible capital is to business owners throughout southern Idaho. With your partnership, the Impact Idaho Fund has provided loans to five entrepreneurs to date. All Impact Idaho Fund portfolio companies are doing their part in building a more resilient, regionalized food system. Their success is possible because of the innovative funding structure you are helping to create.

As I write this, we are finalizing terms with a sixth portfolio company.

Read more about Koborewa Corn Meal on page 31. Starting in September 2023, four of our portfolio companies are making repayments and one company has already fully repaid its loan. We are experiencing the power of recirculating capital and actively looking to increase our available capital to fund additional innovative projects. Borrowers trust us because we understand the complexities of regional food systems and small businesses, while having strong community support for our efforts.

The fund was launched with the belief that some of the greatest resilience solutions are in the minds and actions of regional business owners. We have been honored to learn from our borrowers about how they can catalyze change in the region. At the same time, we’ve been able to assist them in realizing their ideas with solid financial frameworks. It has been a gratifying process.

Internally, our team is focused on creating a funding structure founded on industry best-practices that integrates our mission-focused values. We’re sharing our efforts throughout our networks and inspiring other regions to think about how to leverage capital to build resilience. We’re actively raising capital to ensure the long-term operational success of the fund, while simultaneously increasing the amount of lendable capital available to interested borrowers.

Your continued support will enable us to amplify our impact, empower more visionaries, and create a legacy of resilience that shapes our region for generations to come. Thank you for your trust in launching this fund and your continued partnership in stewarding its growth.

With gratitude, Amy Mattias, Executive Director IMPACT INVESTMENT REPORT

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About Us ABOUT SVIR The purpose of SVIR is to advance community resilience by investing, educating, and collaborating to ensure that the economy, environment, and people thrive.

INVEST

RAISE AWARENESS

Connect blended capital with resilient business ideas.

Bring attention to community resilience solutions.

COLLABORATE

Strengthen connections between regional stakeholders.

ABOUT IMPACT IDAHO FUND The Impact Idaho Fund brings mission-aligned capital to innovative projects advancing community resilience in central and southern Idaho.

In pursuit of community resilience, the fund targets the buildout of regenerative, sustainable, and renewable practices related to food and farm, land, water, and energy use.

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IIF Financial Team INVESTMENT TEAM Catherine Rotchford Chief Investment Officer

Catherine has almost 20 years of experience in investment analysis, working in multiple asset classes from the public equity markets to impact credit funds. She has worked with several large-impact credit funds, running underwriting teams and scaling processes as well as developing new debt products to support social enterprises, BIPOC founders, and female founders.

Amy Mattias Executive Director

Amy joined SVIR’s Food & Farm Program, Local Food Alliance, in fall of 2017. She since stepped into a leadership role, envisioning and enacting SVIR’s programs as the Executive Director. Amy is a board member of Idaho Center for Sustainable Agriculture and FARE Idaho.

Amy serves on the leadership team for the NW and Rocky Mountain Regional Food Business Center as a co-lead for the Right-Sized Investment & Infrastructure Theme Team, as well as the Idaho State Steering Committee.

Hannah Harris Program Coordinator

Since joining SVIR as an intern, Hannah’s passion for understanding the intersection of environmental, economic, and political systems has led her to be an integral part of a wide breadth of projects.

Her previous work has centered around climate literacy and youth development, through the American Youth Foundation and Wood River Valley YMCA.

Annie Keenen Fund Administration

Annie works in several capacities at SVIR. A Wood River Valley native, her interest in the mission of the Institute stems from a deep love for her place of birth as well as a desire to help younger people take more interest in their future and carve a sustainable path to a quality life in the valley.

IMPACT INVESTMENT REPORT

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Theory of Change FUND OBJECTIVES The Impact Idaho Fund was formed to balance the urgency of action with the discipline of systems-learning; we are implementing a new funding model that seeks to disrupt and redirect traditional flows of capital toward building community resilience.

The Fund is currently focused on regional food systems and regenerative agriculture as a keystone for achieving this vision.

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2

3

Strengthen the regional supply chain to create more reliable access to nutrient-dense food.

Fund sustainable food and agricultural practices that prioritize natural resource regeneration.

Demonstrate models to promote local, regional, and state-wide resilience.

FUND STRUCTURE

As low or zero-interest loans are repaid by borrowers, portions that were funded by investors will be returned to them and portions that were funded by donors will be recycled into the fund, amplifying the impact of every dollar contributed.

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Theory of Change SYSTEM CHALLENGES & OPPORTUNITY FOR CHANGE The Impact Idaho Fund was designed to activate capital to address key challenges across the following interconnected pillars of impact: food, land, water, energy, and community.

FOOD

Long and Complex Supply Chains:

Food Insecurity:

Export sales of food and agricultural products from Idaho were over $2.3 billion in 2020, while import sales remained around $400 million.1

Blaine County has the fifth highest grocery cost in the nation.2 Our local food bank is currently serving 240% more people than prepandemic numbers.

LAND

WATER

Development Pressure:

Extreme Drought:

ENERGY

COMMUNITY

Idaho lost 68,800 acres of farmland to development between 20012016.3

Fossil Fuel and Water Dependent Systems:

While renewable energy generated 74% of Idaho’s total electricity in 2021, over 50% of this energy is generated through hydropower,5 which relies on consistent instream river flows and contributes to ecological degeneration.

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2.

3.

4.

5.

6.

More than 800,000 Idahoans live in drought-impacted areas. 93% of people in Blaine County are impacted by drought.4

Small Business Survivability: Only 50% of small businesses survive after a five-year period.6

“Idaho Ag Exports 2022.” Idaho State Department of Agriculture, 2022. https://agri.idaho.gov/main/marketing/ international-marketing/export-statistics/.

“Our Research.” Feeding America, 2019, www.feedingamerica.org/research.

“Idaho Data and Statistics.” FIC, 13 Nov. 2020, farmlandinfo.org/statistics/idaho-statistics.

“Idaho.” Drought.gov, NOAA, 2021, www.drought.gov/states/idaho.

“U.S. Energy Information Administration - Eia - Independent Statistics and Analysis.” Idaho - State Energy Profile Overview, U.S. Energy Information Administration, 2023, www.eia.gov/state/?sid=ID. “Frequently Asked Questions.” Small Business Administration Office of Advocacy, U.S. Bureau of Labor Statistics, 2019, https://cdn.advocacy.sba.gov/wp-content/uploads/2019/09/24153946/Frequently-Asked-Questions-SmallBusiness-2019-1.pdf.

IMPACT INVESTMENT REPORT

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Fund at a Glance CAPITAL RAISING Program initiation through June 30, 2023

FUNDING CATEGORY

DOLLAR AMOUNT

COUNT

Recoverable Grants

$55,000

4

Foundation Grants*

$358,000

6

Repayments Received

$38,625

8

Charitable Donations

$432,260

36

Total Investment

$883,885

54

$845K+ capital raised from 45+ funders* 7.4% RECOVERABLE GRANTS 11.1% FOUNDATION GRANTS

COUNT

14.8% REPAYMENTS RECEIVED

54

66.7% CHARITABLE DONATIONS 6.2% RECOVERABLE GRANTS 40.5% FOUNDATION GRANTS

DOLLAR AMOUNT

4.4% REPAYMENTS RECEIVED 48.9% CHARITABLE DONATIONS *Includes $20,000 from Blaine County’s Land, Water & Wildlife Program

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$884K

Fund at a Glance CAPITAL ALLOCATION CATEGORY

AMOUNT

Approved Borrowers

$385,000

Remaining Project Funds

$103,764

To-Date Setup and Execution

$148,625

To-Date Technical Support

$253,595

ACTIVITY Direct Project Investment

Fund Implementation

11.6% REMAINING PROJECT FUNDS

16.7% TO-DATE SETUP AND EXECUTION

DOLLAR AMOUNT $891K

43.2% APPROVED BORROWERS

28.4% TO-DATE TECHNICAL SUPPORT

D MYC

$25K

pg. 19-21

$250K

pg. 23-26

M

pg. 16-18

SPACES F AR

$25K

WIL D

OO

O GY OL

$10K

pg. 30

IRONW

FUNDED COMPANIES

$75K

pg. 27-29

IMPACT INVESTMENT REPORT

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Fund at a Glance CAPITAL ALLOCATION

IMPACT IDAHO FUND 2.0 •

To set up the Fund, the team created frameworks and templates, including, but not limited to, the following: impact assessment framework, due diligence workbook, borrower impact, and financial reports and legal agreements. Materials have been refined over time as the program has evolved.

•

As the Fund continues refine operations utilizing industry bestpractices, the Fund team is developing risk rating tools for funders and borrowers, modeling cash flow, strengthening the approval process, enhancing closing and pay off processes, honing in on an updated credit memo and credit policy, and creating more robust impact analysis and reporting.

•

Through Fund execution, six projects have been approved for funding. Current and future applicants will also be subject to formal due diligence to ensure all portfolio companies meet the Fund’s financial, impact, and risk criteria.

AVAILABLE CAPITAL & APPLICANT PIPELINE •

The Fund has just over $100,000 available for lendable capital; however, the interested companies are seeking loans above this amount. The application process has been paused while the team focuses on refining internal processes and raising additional capital. Funding will continue to support staff time to raise awareness of the Fund and build relationships with entrepreneurs focused on regional food and regenerative agriculture. This work ensures a robust pipeline for fundable projects when additional capital is available.

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APPLICANT AND BORROWER TECHNICAL SUPPORT •

All applicants and borrowers receive technical support, spanning from pre-application consultations to borrower reporting and repayment.

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First, the team schedules consultations with potential applicants, advising on regenerative agricultural practices, business plans, and funding needs.

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Following consultations, the team supports applicants by developing financial models and projections, which are needed to perform the investment due diligence required to enable the flow of capital from donors and investors to borrowers.

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This process not only unlocks the potential for borrowers to receive capital from the Fund in the near-term, but also opens the door for them to continue to work with IIF for additional loans, as well as to access other types of funding in the future.

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The financial acumen and tools gained by borrowers as part of this technical assistance process also allows them to make more informed business decisions, contributing to longer-term business viability and sustainability.

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Thorough technical assistance is time-intensive, but it leads to strong due diligence outcomes and reliable investment decisions, enabling SVIR to be the most prudent stewards of donor and investor dollars.

IMPACT INVESTMENT REPORT

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Fund at a Glance PROJECT PIPELINE

Total Requested Funds

Currently in Due Diligence (as of 6/30/2023)

$3.4 Million

Funded Projects (as of 6/30/2023)

$385K

$22K

TYPES OF SUBMITTED PROJECTS

FOOD PRODUCTION

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VALUE-ADDED PRODUCTS DISTRIBUTION

2

1

WASTE RECOVERY

0

AG-TECH PROCESSING

2

FOOD ACCESS POINTS

3

3

FUNDED PROJECT FOCUS

viability regional local food economic resilience crop diversification access import substitution water conservation job opportunities

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ecosystem services

regenerative agriculture

SUBMITTED PROJECT LOCATIONS BY COUNTY

Minidoka Lincoln 1 1 Lemhi 1 Custer 1 Twin Falls 4

22 SUBMITTED PROJECTS

Blaine 7

Ada 3

Elmore 2 Bannock 2

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1

3

7

2

1

1 2

2 *Submitted project data includes all projects that applied for funding since the launch of the Impact Idaho Fund Pilot to 6/30/23.

IMPACT INVESTMENT REPORT

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Fund at a Glance IMPACT ACHIEVED* FOOD

Increased the amount of locally produced, nutrientdense food through growing structures, season extension infrastructure, and optimizing production areas as well as launching new enterprises.

Contributed to import substitution goals, which aim to address regional supply chain weaknesses by shoring up local capacity.

In total, borrowers sold almost 46,600 pounds of locally consumed food between the first impact reporting period in 2021 and June 2023. This number includes active portfolio companies and fully repaid companies.

The livestock processing facility processed over 1,220 animals from 21 small and mid-sized operations in Idaho and eastern Oregon. This contributed just over 220,000 pounds of locally raised meat into the regional food system.

LAND

Expanded resilient farming practices grounded in regenerative agriculture that prioritize soil health and natural resource conservation. Currently, borrowers cultivate nearly 7 million square feet or just over 160 acres of land using sustainable practices.

Utilizing agricultural land for human food production ensures the best use of regional natural resources.

WATER

Decreased water usage through efficient irrigation and crop selection. For example, it is anticipated that 2.5x less water will be used to produce human consumption crops compared to livestock forage crops.

The livestock processing facility treated close to 200,000 gallons of water through an on-site water treatment system.

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WATER

ENERGY

Protected water quality through expanded farming practices that reduce nutrient run-off into nearby watersheds. Implemented livestock management practices that operate within the natural water cycle.

Avoided carbon dioxide equivalent emissions through place-based investments in regenerative agricultural practices, which capture carbon in the soil, and local food supply chains, which decrease reliance on energy-intensive activities, such as transportation.

A recent analysis published in Nature Food shows that the greenhouse gas emissions correlated with the transportation of food are 3.5-7.5 times higher than previously estimated. The IIF model has been adjusted to account for these updated figures.

Avoided approximately 216,000 lbs of carbon dioxide equivalents** by selling produce locally (versus nationally) through reduced transportation alone.

The amount of carbon avoided is approximate to the level of carbon sequestered by planting and growing 1,500 tree seedlings for 10 years.

COMMUNITY

Contributed to long-term business sustainability by providing technical support to applicants and borrowers, such as business planning and financial reporting.

Promoted job creation and economic prosperity by supporting successful, growing businesses in the region. Funded businesses spent over $555,000 on wages cumulatively since the first impact report in 2021 with just over 42,000 labor hours recorded.

This equates to almost 20 full-time equivalent jobs.

*Reporting period covers program inception in 2021 – June 2023. **Modeled by SVIR using industry data and assumptions.

IMPACT INVESTMENT REPORT

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Funded Company: Ironwood Mycology FARM OVERVIEW Ironwood Mycology is an indoor cultivation operation in Richfield that specializes in culinary mushrooms.

Ironwood Mycology sells mushrooms throughout south central Idaho. During the first summer of operations, Ironwood was present at the Lincoln County Farmers Market, the Gooding Farmers Market, and the Twin Falls Farmers Market. Mushrooms were also sold to retail stores and restaurants in Richfield and the Wood River Valley, including NourishMe, Il Naso, Rasberry’s, and CK’s. Customers can also buy directly from Ironwood Mycology.

COMPANY OVERVIEW With a $25,000 low-interest loan, Ironwood Mycology was able to launch a new business serving the regional food system. Capital allowed for facility upgrades to ensure a food-safe inoculation and growing laboratory, necessary equipment to cultivate mushrooms, packaging and marketing supplies, and operating expenses for the pre-revenue, start-up period. The capital will also be used to install solar panels on the rooftop of the building once necessary maintenance has been completed to strengthen the roof structure.

Ironwood Mycology also offers wild mushroom varieties by foraging in surrounding wild areas. From sharing recipe ideas or accurately identifying mushrooms for neighbors, Ironwood Mycology is making mycological exploration part of its business model.

As a pre-revenue business, Ironwood Mycology had few financing options. Working with the Impact Idaho Fund team allowed for the development of a strong business plan, financial projections, and market access. As the business continues to develop, the Ironwood Mycology team plans to increase production, add more employment opportunities, and expand to a wider array of markets including more direct to consumer options as well as more restaurant sales.

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Funded Company: Ironwood Mycology CUMULATIVE REPORTED IMPACT*

FOOD

LAND

Approximately 125 pounds of nutrient-dense food were locally produced and sold in the second quarter of 2023. Quarter one was spent building the facility and testing mushroom varieties. Sales began in quarter two and we anticipate the volume of sales to greatly increase in future reporting periods.

Of the 2,500 square feet of operating space approximately 600 square feet are currently being utilized for the inoculation room, where the mushrooms are grown for harvest. An additional outdoor space will be utilized for growing wild varieties of mushrooms in future seasons.

Indoor mushroom cultivation facilities do require inputs, such as substrate material. Some of the substrate material used is sourced from local byproducts including wheat bran from Hillside Grain in Bellevue and wood chips from local arborists. Ironwood Mycology grows mushrooms in recyclable plastic and composts substrate material on site or gives it to interested community members for their home gardens.

WATER

Mushrooms require moisture for cultivation. Indoor operations are able to control the amount of moisture received. Some of the water is used to humidify the growing chamber. Approximately 300 gallons of municipal water was utilized during the reporting period.

Funded Company: Ironwood Mycology CUMULATIVE REPORTED IMPACT*

ENERGY

COMMUNITY

Avoided approximately 232 lbs of carbon dioxide equivalents** by selling produce locally (versus nationally). The amount of carbon avoided from reducing transportation is approximate to the carbon sequestered by planting and growing 2 tree seedlings for 10 years. The magnitude of the impact will increase substantially as production volumes and sales increase.

Provide a food product that has limited availability in the local market while educating the public about the benefits of consuming mushrooms as part of a balanced diet.

Increase access to locally grown and sustainable meat substitutes.

The Impact Idaho Fund is responsible for just about everything I have been able to accomplish. Mushroom cultivation requires very specialized and specific equipment that I would not have been able to acquire without the investment. In addition, the Institute has been integral to my networking and marketing abilities, introducing me to multiple chefs, store proprietors, and more. Without the Institute, I would only be able to grow mushrooms for myself. Instead, I have been able to grow hundreds of pounds that have supplied many local eateries and customers.

Zackary Wood Owner, Ironwood Mycology

*Reporting Period April - June 2023. **Modeled by SVIR using industry data and assumption.

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Revitalize a vacant building and create a welcoming, outdoor growing space for community engagement and educational offerings.

Pilot Company: Lookout Farm FARM OVERVIEW Lookout Farm is a farm operation in Bellevue that specializes in seasonal vegetables and leafy greens.

Historically, Lookout’s produce has been sold through their community supported agriculture (CSA) offering and at the Hailey Farmers Market.

Due to shifting operator dynamics, the Lookout Farm team dialed back their diverse production plan during the 2023 season. The 2023 focus has been on producing larger volumes of crops including kale, carrots, and a variety of pumpkins. Lookout Farm will host a u-pick pumpkin patch again this fall.

PROJECT OVERVIEW With a $25,000 zero-interest loan, Lookout Farm purchased the equipment, tools, and inputs needed to convert two and a half acres from hay production to vegetable production. A portion of this project was funded by Blaine County’s Land, Water, and Wildlife Program.

During the second year of the conversion, Lookout Farm transitioned one acre into a u-pick pumpkin patch, the Wood River Valley’s first.

This successful community event will occur again this fall and include an additional weekend. For 2023, the portion that remained in cover crops during the 2022 season will be utilized as the pumpkin patch acreage. Additional acreage will produce vegetables, including winter squashes and tomatoes, and go through another cover crop succession to enhance soil fertility.

As the transition continues, the operators are minimizing water usage, ensuring soil fertility, reducing weed pressure. Lookout Farm will be increasing the portion of the transitioned acreage used for growing cash crops in the 2023 season and the rest will undergo cover cropping to enhance soil fertility for the next growing season.

IMPACT INVESTMENT REPORT

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Pilot Company: Lookout Farm CUMULATIVE REPORTED IMPACT* FOOD

LAND

Approximately 19,500 pounds of nutrient-dense food were locally produced and sold since the first impact report in 2021. This volume was yielded from existing acreage and a portion of the converted parcel.

Additional production ground from the transition is being utilized for late summer and fall crops. The next reporting period will include the expanded acreage.

Of the 14.5 acres (630,000 square feet) under sustainable cultivation, approximately 3 acres (130,000 square feet) are currently producing a variety of annual vegetables and a large portion of the transitional 2.5 acres has been used to create a pumpkin patch and other fall crop production. The remaining acreage is managed for animal forage production or native plantings.

Historically, production methods rely upon chemical herbicides to eliminate alfalfa from fields. This transition will utilize a combination of mechanical plant disruption and cover cropping to maintain soil quality under the guidance of regenerative, organic practices.

WATER

Vegetable production will utilize 2.5x less water per week compared to hay production. This differential is a conservative estimate that is anticipated to increase over time as additional flow meters are installed, demonstrating the water-saving potential of the hayto-vegetable transition.

Leveraged precision farming and regenerative agriculture techniques will reduce nutrient and soil run-off and protect water quality.

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Pilot Company: Lookout Farm

ENERGY

COMMUNITY

Avoided approximately 37,000 lbs of carbon dioxide equivalents** by selling produce locally (versus nationally). The amount of carbon avoided from reducing transportation is approximate to the carbon sequestered by planting and growing 277 tree seedlings for 10 years.

Provided an exceptional example of land use transition to inspire other farmers in the region.

Hired seasonal labor to help transition acreage and harvest expanded growing space, creating local job opportunities.

Improved financial modeling and reporting, contributing to long-term business success.

Simon Neely Owner, Lookout Farm

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Our pumpkin patch event the first week of October was a total success. We had greater turnout than expected and believe it was an asset to the community. Lots of kids had fun! It is easy to envision scaling up the pumpkin patch and associated activities to create an impactful event in the fall that could span more than one weekend. That will be the focus of expanding the transition acreage, along with increasing production for certain wholesale crops, including winter squash and field tomatoes.

*Reporting Period January 2021 - June 2023. **Modeled by SVIR using industry data and assumption.

IMPACT INVESTMENT REPORT

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Pilot Company: Sustainable Meats, LLC FARM OVERVIEW Sustainable Meats is a subsidiary of American Ostrich Farm, which is a vertically integrated, multichannel producer of ostrich. The organization’s mission is to give Americans a healthier and more sustainable red meat option by making ostrich a mainstream animal protein that offers consumers a more environmentally conscious choice. The business’s biggest challenge is securing reliable and affordable meat processing services for their small-scale operation – a challenge for all small-scale producers in the region. This challenge led to the planning and construction of a USDA-inspected livestock harvesting and processing facility located on site at American Ostrich Farm in Kuna, Idaho. The facility provides harvest and processing services for ostrich, lamb, and beef producers in the southern Idaho region.

PROJECT OVERVIEW The Impact Idaho Fund provided closing capital of $250,000 on the full capital raise of $2.5M. The loan will be fully repaid in November of 2027 with a 4% interest rate. This loan is the first interest-based loan issued by the Impact Idaho Fund and helps to prove the concept that patient, affordable capital is necessary for entrepreneurial growth and regional resilience in southern Idaho.

Located in the Treasure Valley, Sustainable Meats will serve a vast array of small and mid-scale farmers and ranchers while simultaneously helping to meet the growing demands of consumers seeking out locally raised, high-quality meat products.

IMPACT INVESTMENT REPORT

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Pilot Company: Sustainable Meats, LLC PROJECT OVERVIEW A state-of-the-art water treatment system, Biomicrobics MicroFAST, protects the groundwater in the area and serves as a model for other livestock processing facilities. Sustainable Meats will also compost any unusable animal waste, ensuring that there is no air quality impact from incineration, which is common among processing and rendering facilities.

The culture of the parent company, American Ostrich Farm, is present within the meat processing facility as well. Employee benefits include higher than average wages for the processing sector, insurance coverage, PTO and holiday pay, and opportunities for advancement and professional development. AOF prides itself on being an inclusive and safe workplace for all.

A processing facility of this quality and size fills a gap within the current regional food and agriculture system, while serving as a model for other facilities within Idaho and throughout the nation.

CUMULATIVE REPORTED IMPACT* FOOD

Over 220,000 pounds of meat products have been processed at Sustainable Meats since operations began in June of 2022. This includes over 150,000 pounds processed for third-party customers, which are primarily small-scale lamb, cattle, and goat producers in the southern Idaho region. This volume is expected to increase in the following reporting cycles as the operation expanded into their brick-andmortar location last fall, which has allowed them to expand services to a broader customer base.

*Reporting Period January - December 2022.

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Pilot Company: Sustainable Meats, LLC

LAND

American Ostrich Farm consists of 120 acres of land with the Sustainable Meats harvest and processing facility taking up a small fraction.

To ensure long-term soil health of the farm operation, Sustainable Meats has incorporated an on-farm composting system that turns by-products from the harvest and packaging process into high-quality compost. To date, just over 70,000 pounds of byproducts have been composted. In conventional processing facilities, these by-products are removed from the facility by a waste removal service and often end up in landfills.

WATER

ENERGY

Sustainable Meats is also committed to ensuring water quality and water use efficiency. The processing facility has an onsite water treatment system. Since operations began, almost 200,000 gallons of water have been cleaned and reintegrated into the onfarm water cycle.

At SVIR, we value transparency and accuracy in our data reporting. Due to the unique operations of this project, our team is still assessing how to best collect and analyze data related to energy use. We look forward to showcasing impact in our future reports.

IMPACT INVESTMENT REPORT

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Pilot Project: Sustainable Meats, LLC CUMULATIVE REPORTED IMPACT* COMMUNITY

Designed and executed a small-scale, multi-species USDA-inspected livestock processing facility that incorporates on-site composting and water treatment, filling a processing gap in our regional food system.

Currently Sustainable Meats has nine full-time positions that provide fair wages and benefits.

The Sustainable Meats facility is creating local job opportunities that are safe and accessible for all.

Servicing small and mid-sized ranchers throughout the southern Idaho and eastern Oregon region fills a gap in available USDA-inspected slots for beef, lamb, and goat producers.

*Reporting Period June 2022 - June 2023.

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Our mission is very closely aligned with that of Sun Valley Institute for Resilience. The meat industry is concentrated, antiquated, and vulnerable. This is a major issue for our region and for my business specifically. Building distributed slaughter and fabrication facilities like this one is a resilience driver for our region.

Alex McCoy CEO & Founder, Sustainable Meats

Pilot Company: Wild Spaces Farm FARM OVERVIEW Wild Spaces Farm is a new business launched by a thirdgeneration farmer, Wilder Jones.

Wild Spaces is a pasture-raised, regenerative micro dairy in Glenns Ferry that produces raw and minimally pasteurized products for southern Idaho communities.

Wild Spaces started selling pasture-raised, raw milk in glass bottles in April of 2022. Wild Spaces now offers value-added products including yogurt and labneh.

In spring of 2023, Wild Spaces began integrating pastured laying hens and selling eggs by the dozen. Wild Spaces Farm products are currently available at the Wood River Farmers Market in Ketchum, the Boise Farmers Market, and at NourishMe in Ketchum and Six Creek Mercantile in Glenns Ferry.

PROJECT OVERVIEW With a $75,000 zero interest loan, Wild Spaces purchased the infrastructure and equipment needed to launch the micro dairy. Funds also cover operating expenses during the initial start-up phase. Wild Spaces will sell products in the Wood River Valley, Magic Valley, and Treasure Valley, while also ensuring that the community of Glenns Ferry has access to the farm’s high-quality, affordable products.

The dairy is implementing pasture-raised and organic methods, prioritizing animal and human welfare alongside sustainable packaging and responsible land use practices, and will serve as a model for interested producers and entrepreneurs.

IMPACT INVESTMENT REPORT

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Pilot Company: Wild Spaces Farm CUMULATIVE REPORTED IMPACT* FOOD

LAND

Approximately 840 half-gallons of nutrient-dense milk, 11 pounds of raw butter, 160 pounds of yogurt, and 134 dozen egges were locally produced and sold from the first day of operations until June 30, 2023. This volume is expected to increase in future reporting periods with the addition of more milking cows, the expansion into value-added products and laying hens, as well as tapping into more local markets. Due to the inherent values in the production model, the winter season will remain lower in sales than the full-year sales.

Of the 25 acres (1,089,000 square feet) under sustainable cultivation, 10 acres (435,600 square feet) are currently used for grazing and 15 acres (653,400 square feet) are used for harvested feed.

The majority of the southern Idaho dairy industry is comprised of large-scale concentrated animal operations. Many of these operations do not allow milking cows to graze pasture, therefore limiting the ability for the livestock to serve as tools for regenerating soil health. This business model will serve as a model for a regenerative micro dairy operation utilizing beyond organic practices.

WATER

In comparison to conventional dairy operations, pasture-based dairies protect water quality and increase water use efficiency. Cows having access to graze ensures that the water they consume recirculates back into the water cycle.

Minimizing wastewater and composting livestock waste protects water quality whereas conventional dairies use manure lagoons that can impact water and air quality.

*Reporting Period January - December 2022.

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Pilot Company: Wild Spaces Farm CUMULATIVE REPORTED IMPACT* ENERGY

COMMUNITY

Avoided approximately 9,500 pounds of carbon dioxide equivalents** by products locally (versus nationally). The amount of carbon avoided from reducing transportation is approximate to the carbon sequestered by planting and growing 71 tree seedlings for 10 years. The magnitude of the impact will increase as milk operation sees full production capacity.

Designed and executed a climate-smart micro dairy model that filled a gap in our regional food system.

Hired farm labor to support milking operation and grazing management, creating local job opportunities.

Improved financial modeling and reporting, contributing to long-term business success.

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The Impact Idaho Fund allowed me to fast-track my dreams of creating a micro dairy. I had planned to take the multiyear approach of acquiring equipment and cows. Receiving the Idaho Impact Fund allowed me to start my business and pursue my passion unimpeded by financial restraints.

Wilder Jones Owner, Wild Spaces Farm

*Reporting Period April 2022 - June 2023. **Modeled by SVIR using industry data and assumptions.

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Repaid Loans: Itty Bitty Farms Itty Bitty Farms was one of the first portfolio companies funded during the pilot phase of the Impact Fund. Capital went to infrastructure and tools that allowed the borrower to see almost immediate revenue generation. This type of funding allows for a shorter loan term. As of December 2022, Itty Bitty Farms has completed their repayment of the funding. The $10,000 recovered capital will be recirculated into the fund for future deployment.

During the full loan term, Itty Bitty Farms produced close to 12,000 pounds of produce and sold just over $151,000 in their on-farm storefront. The storefront sources goods from nine other local farmers and ranchers and offers over 30 products from regional producers, including a variety of fresh produce, meat, dairy, eggs, and valueadded products. Produce and value-added products produced at Itty Bitty Farms have also been sold at the Wood River Farmers Market and the Carey Farmers Market, through Kraay’s Market & Garden, and to various restaurant and retail stores.

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Working with the Sun Valley Institute and having the opportunity to increase our impact on our community has been a life-changing experience for us. We have learned that positive outcomes can be made with relatively small effort and that so much good comes from looking outward to our community. Having access to the funds, equipment, and knowledgeable support has allowed us to move into a more dedicated realm of small agriculture than we would have otherwise been able to do.

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Emily Knowles Owner, Itty Bitty Farms 30

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Approved Portfolio Company: Koborewa Corn Meal The most recent portfolio company to receive funding approval is Koborewa Corn Meal.

Based in Boise, Idaho, Koborewa Corn Meal is a specialty corn meal business owned and operated by Emmanuel Nkurunziza. Emmanuel has a history of farming and business ownership in his home country, Burundi, and brought his vision with him when relocating to the United States over ten years ago. After being connected with farming and the regional food system through the Global Gardens Farmer Entrepreneurship Program, Emmanuel saw an opportunity to create a corn meal product that brought the flavors of home to the African diaspora population in the Boise metro area.

The $22,000 zero interest loan made to Koborewa Corn Meal will be used to equip an area within the Global Gardens food hub space to be operated as a corn milling facility. Equipment purchases include the grain mill, scales, ventilation systems, a computer and printer system, a label maker, and a sealing unit for packaging. Funds will also be used for operating capital as the business gets started.

Koborewa Corn Meal is set to fill a gap within the system for product availability. There is limited availability for locally grown and milled corn in the southern Idaho food system. Koborewa will offer a traditional style of corn meal that is used in a variety of African cultures and similar to the style of many Latin American cultures. Throughout these various cultures, the corn meal is a staple and is served on a daily basis.

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Approved Portfolio Company: Koborewa Corn Meal Koborewa Corn Meal is being established as a cottage food company and will sell direct-to-consumer by way of the farmers market in Boise, additional markets organized by Global Gardens, and by utilizing the Idaho African Refugee Facebook community to sell direct to interested people. Because Emmanuel will be operating as a cottage business, he won’t immediately be able to wholesale his product, but will eventually upgrade his licensure to access new sales channels.

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The loan from Impact Idaho Fund is a good foundation for Koborewa Corn Meal. I will be able to start off with the equipment necessary to create a high-quality product and meet the demands of our community. Demand for the flavors for home is high since the COVID pandemic.

The commercially available corn meal options are a poor substitute. I have farmed my whole life and have a passion for business development. I am excited to bring my passions together to produce this culturally celebrated food for the Boise community.

Emmanuel Nkurunziza Owner, Koborewa Corn Meal

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Future of the Fund LOOKING FORWARD •

Launch permanent evergreen fund with new processes to scale IIF efficiently while ensuring impact lending industry best practices.

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Continue to build a network of referrals to locate impact aligned prospective borrowers for the portfolio.

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Partner with sizable donors and foundations for long-term funding such as the USDA Rural Development relending program and the emerging CDFI program.

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Continue to develop new financial tools IIF can offer to future entrepreneurs to scale their businesses.

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Connect portfolio companies with more resources, customers, and networking opportunities to build resilience in partnership with the community.

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Build upon our network of place-based impact funds and regenerative agriculture finance funds nationwide to develop best practices, share resources, and enhance deal flow.

PHILANTHROPIC CAPITAL Are you ready to become one of our funders or increase your contribution during this capital raise?

Your philanthropic capital will allow us to launch an evergreen fund, continuing the impact achieved during the Impact Idaho Fund pilot phase. All contributions will be recirculated over time and used to support businesses building resilience through regional food systems and regenerative agriculture in our community.

Contributions may be made at any time. Contact Amy (208) 309-0414, amy@sunvalleyinstitute.org, or visit sunvalleyinstitute.org/donate.

A portion of all contributions will be earmarked for Impact Idaho Fund operational expenses.

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Thank You

DONORS Thank you to all the donors and investors since the initial capital raise starting in the fall of 2020.

Aimée Christensen Alexandra Babalis Annie Heissenbuttel Anonymous (7) Blaine County Land, Water, and Wildlife Program Christensen Family Foundation Connie & Tony Price Diane Banta Greg Carr Foundation Inc. Hecht 2008 Grantor Charitable Lead Annuity Trust Heart of Gold Fund in the Idaho Community Foundation Heinz Family Foundation Hillside Grain Ian Jameson Jan Philipsborn Gift Fund Jeri Howland & Jerry Edelbrock

Jim & Wendy Drasdo Kelley Weston Lisa Stelck & Bill Boeger Mary & Stephen Malkmus Nancy Holcomb Nancy P. & Richard K. Robbins Family Foundation Pamela & Steve Doucette Peter Curran / Peco Foundation Scott Fey & Dana Lyon Sean Hollitz Susan & Bradley Brickman Susan Passovoy The Marshall Frankel Foundation The Warrington Foundation Thomas Selby & Meaghan McGrath

INVESTORS

LEGAL ADVISORS

Aimée Christensen Earthshine Foundation Susan Passovoy The Lufkin Family Foundation Trust

David Arkoosh Tom Praggastis

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sunvalleyinstitute.org inquiries@sunvalleyinstitute.org (208) 471-4976 Post Office Box 3537 Hailey, ID 83333 EIN: 47-3151484