Forget Conventional 401(k)s; Think Goat Cheese and Fennel

The crux of the movement is persuading investors to put some of their assets into businesses they can see, smell and even taste — to measure growth not by the flashing numbers on a stock ticker, but by the slow ripening of a tomato.

Mr. Tasch is thinking about farmers like Martin Ping of upstate New York, who invites customers to invest in projects like a cheese processing plant. Investors can expect only about a 3% return. But they also get a ready source of fresh-made cheese and the knowledge that they help preserve an agrarian landscape. “They have to redefine what return is,” Mr. Ping said. “I tell them, come out in the pasture and you can watch your money grow.”

If all goes well, investors will see a modest 3% profit, maybe 6% over many years. But Mr. Tasch has a broader balance sheet in mind. The real dividend, he says, is diversity: In an era of industrial agriculture, where millions of acres are planted with the same variety of corn and millions of pigs are bred to be genetically similar, small local farms are the ultimate hedge fund. They preserve heirloom seeds and quirky breeds; strengthen the soil with organic nutrients; create local markets that connect producer directly to consumer.

WSJ