#United States #Boston #Ara Partners #Pacific Ag #Crop Residue

Ara Infrastructure Takes Majority Stake in Pacific Ag

Ara Partners, a prominent private equity and infrastructure firm with a global outlook, has made headlines with its recent acquisition of a majority interest in Pacific Ag. This company holds the title of North America's largest crop residue supply and logistics provider. The acquisition is a pivotal move towards enhancing sustainability and innovation within the agricultural supply chain.

U.S. farms generate a staggering amount of crop residue annually, amounting to hundreds of millions of tons, including materials such as corn stover and wheat straw produced after harvesting grains. Managing this residue poses a significant challenge for farmers, who often bear additional costs for tillage, removal, and nutrient management. However, Pacific Ag offers a novel solution by converting what was previously considered waste into valuable sustainable feedstocks, catering to key markets, including dairy farms and animal protein producers, as well as mushroom cultivation.

The robust infrastructure network that Pacific Ag boasts—including its extensive harvesting capabilities and logistics framework—enables the company to efficiently transform agricultural by-products into income streams for farmers. Utilizing a highly specialized team and state-of-the-art equipment, Pacific Ag collects surplus residue directly from farmers' fields while ensuring the health of the soil remains intact.

Bill Levy, founder and CEO of Pacific Ag, emphasized the company's founding philosophy: "Pacific Ag started nearly three decades ago with a simple idea—crop harvests leave behind byproducts too valuable to waste. We aim to convert costs into revenue for farmers by managing harvesting, storage, and delivery, thereby alleviating the burden of additional labor and equipment on their end. We're proud to support growers and communities across the nation with this sustainable framework."

George Yong, a partner at Ara Infrastructure, also spoke positively about the acquisition, noting that Pacific Ag has successfully developed a nationwide network, which usually takes years for others in the infrastructure domain to accomplish. Yong remarked, "Our investment reflects our commitment to the waste-to-value model, converting agricultural residues into productive assets. At a time when there is a pressing need for cost-effective solutions for farmers, we recognize Pacific Ag's potential to bolster our domestic agricultural supply chains."

Ara Partners aims to scale solutions that contribute positively to the energy and industrial transitions, illustrating that their objectives align with sustainability and economic opportunities for farmers. Founded only in 2017, Ara Partners has made significant strides by managing around $10.6 billion in assets, all while focusing on decarbonization and innovative solutions.

Pacific Ag’s achievements are notable—ranging from initiating operations in the Columbia River Basin to extending services to farmers across over 30 states. They are committed to supporting multiple sectors, such as animal protein and mushroom production while contributing to environmental sustainability through decarbonization strategies. This acquisition marks a new chapter for both Ara Partners and Pacific Ag as they embark on a joint mission to enhance agricultural practices by leveraging the power of crop residue in a sustainable and profitable manner.

With the backing of Ara Infrastructure, Pacific Ag is poised for further growth as they expand their reach and capability to serve even more growers, continuing their legacy of transforming waste into opportunity.