---
# System prepended metadata

title: 'Collateral Call Summary - Episode #22'
tags: [Collateral Call]

---

---
tags: Collateral Call
---

# Collateral Call Summary - Episode #22
January 6th, 2020

## Agenda

- [00:00](https://www.youtube.com/watch?v=mQeb6Pi5YDM&t=0): Intro with Juan Guillén
- [00:01](https://www.youtube.com/watch?v=mQeb6Pi5YDM&t=60s): Peoples Company with Mark Moore, Dave Muth, Steve Bruere and Bruce Sherrick
- [52:37](https://youtu.be/mQeb6Pi5YDM?t=3157): Q&A and Discussion about Peoples Company
- [01:00:46](https://youtu.be/mQeb6Pi5YDM?t=3646): Outro

## Video

<https://www.youtube.com/watch?v=mQeb6Pi5YDM>

## Introduction

### Juan Guillén

#### Agenda and Preamble
[00:00](https://www.youtube.com/watch?v=mQeb6Pi5YDM&t=0)

- Welcome to another MakerDAO collateral call. Today we are having a RWA collateral call. One of the projects that joined us very briefly last year is going to present again so we can go more in detail into the project, how it works and how the interaction with MakerDAO would work.
- This company is Peoples Company ([website](www.peoplescompany.com)).
- Discussions about collateral happen in the [Forum.](https://forum.makerdao.com/c/risk/collateral-meetings/23)

## Peoples Company

- [[P1-DROP] MIP6 Application: Peoples Company DROP: US Agricultural Real Estate](https://forum.makerdao.com/t/p1-drop-mip6-application-peoples-company-drop-us-agricultural-real-estate/5518)

### Mark Moore, Dave Muth, Steve Bruere and Bruce Sherrick

#### Presentation
[00:01](https://www.youtube.com/watch?v=mQeb6Pi5YDM&t=60s)

![DROP tokens backed by U.S. farmland](https://i.imgur.com/oJoQdET.jpg)

![Roster](https://i.imgur.com/ErKnxDm.png)

![Discussion summary](https://i.imgur.com/rjj5yYy.jpg)

![Overview](https://i.imgur.com/fC6fYpB.png)

![Current state of the U.S. farmland asset class](https://i.imgur.com/gJIxXFp.jpg)

[**09:11** — Juan Guillén: Going back to the previous slide, if Maker or anyone gives you 10M or 20M Dai, does that go to one of those activities that were listed or is it on this specific case?](https://youtu.be/mQeb6Pi5YDM?t=551)

![U.S. AG sector balance sheet](https://i.imgur.com/aRAGJvk.png)

![Conclusions](https://i.imgur.com/lyHutan.jpg)

![Farmland returns in context 0](https://i.imgur.com/tODpfgS.png)

![Farmland investment growth](https://i.imgur.com/KKmMzEC.png)

![Farmland returns in context 1](https://i.imgur.com/K9TmAmP.png)

![U.S. farmland returns](https://i.imgur.com/tFYCnso.png)

![Appropriate discount rate for farmland](https://i.imgur.com/k4iELWi.png)

![AEA farmland investement services and strategies](https://i.imgur.com/oDeAvog.jpg)

[**17:59** — planet_x: Regarding subsidies and political risk, how large are U.S. subsidies? Could cut in subsidies impact the price of farmland?](https://youtu.be/mQeb6Pi5YDM?t=1079)

[**21:53** — Prose: I was curious how it will work with the actual collateralizing process with Maker. Are these lands that individuls would go through Peoples'? Or are people looking to buy slices of a project already purchased?](https://youtu.be/mQeb6Pi5YDM?t=1313)

![AEA overview](https://i.imgur.com/hnjIvhB.jpg)

![AEA competitive advantage](https://i.imgur.com/GvI3cT1.jpg)

![AEA investment services](https://i.imgur.com/hoBxRWK.jpg)

![U.S. farmland asset class](https://i.imgur.com/89UMdkK.png)

![Opportunities in focus](https://i.imgur.com/98EYFzp.jpg)

![Shifting consumer trends](https://i.imgur.com/BYripcW.png)

![Demand for sustainability](https://i.imgur.com/FsEXkX8.png)

![Financialization](https://i.imgur.com/1UfWuKv.jpg)

![Technology](https://i.imgur.com/AFLXr1E.png)

![Food supply chain](https://i.imgur.com/ZGuoOEJ.jpg)

![Comprehensive asset management](https://i.imgur.com/65sKjv8.png)

![Asset management - Structures](https://i.imgur.com/myqvP2y.png)

![Asset management - Execution](https://i.imgur.com/aGgjDhL.jpg)

![Asset management - Sustainability](https://i.imgur.com/5LPFC5b.jpg)

![Customized investment strategies](https://i.imgur.com/e6VyDdu.jpg)

![Case study - conventional row crop improvement](https://i.imgur.com/gWth17k.jpg)

![Case study - organic transition lease](https://i.imgur.com/bbbmShc.jpg)

![Applications of the facility](https://i.imgur.com/yctSrYb.png)

![Terms](https://i.imgur.com/auYf9gr.png)

![Table](https://i.imgur.com/S9p9rw6.png)

![Thank you](https://i.imgur.com/icTrwxL.jpg)



#### Discussion

- [**52:37** — Frank Cruz: A quick question with regards to the risk and with regards to farm sector solvency ratios: can you give us an idea if they're even or they're down for the last 10 years?](https://youtu.be/mQeb6Pi5YDM?t=3157)
- [**54:19** — Frank Cruz: Just to compare with 2008, would you say it's about the same or a little bit lower currently?](https://youtu.be/mQeb6Pi5YDM?t=3259)
- [**55:18** — *Free discussion with Sébastien Derivaux*](https://youtu.be/mQeb6Pi5YDM?t=3318)
- [**58:56** — Frank Cruz: If 80% of the farmers are over 55 years of age, who's going to be taking over the farming in 20 years, in your opinion?](https://youtu.be/mQeb6Pi5YDM?t=3536)


## Closing Comment

### Juan Guillén

#### Outro
[01:00:46](https://youtu.be/mQeb6Pi5YDM?t=3646)

- Thank you, Mark, Steven, Dave, Bruce from Peoples Company for presenting the project. Very interesting. We'll see you in the forum. Before we leave, [can you tell how people can find more about your project and where to find you personally? (01:00:56)](https://youtu.be/mQeb6Pi5YDM?t=3646)
- Thank you for joining. Next week we'll have the xDai team coming to present the Stake application. We'll also have Patricio from the POAP —Proof of Attendance Protocol— as a special guest.


## Credits

- @blimpa produced this summary.
- Everyone who spoke and presented on the call, listed in the headers.