Offered By
AcreTrader is an investing platform that makes it easy to buy shares of farmland and earn passive income through one of the fastest-growing asset classes available. The platform features actual parcels of farmland where investors can choose offerings to participate in based on their investment preferences.
Historic Returns
Investor Types
Min. Investment
Property Types Available
Do you think Black River Farm is a good investment?
Terms
Bull Case:
Sale-Leaseback with Experienced Local Operator: Working with an operator with over 20 years of experience on the same ground, ensuring operational control and a commitment to sustaining the asset's value.
Attractive Entry Price: The farm is believed to be purchased at a competitive price based on recent comparable sales, providing an attractive entry point into the tenant-dense land market.
Regional Presence and Significance: The investment represents the 9th offering in a five-county area, with over 2,000 acres managed in the Missouri Bootheel. The region's strength in rice and soybean production, supported by fertile soils and robust groundwater resources, adds to the investment's appeal.
Lease Structure: A sale-leaseback arrangement with a three-year lease and a purchase option, allowing the farmer to buy back the property at the appraised value after the lease period, providing stability and potential long-term returns.
Bear Case:
Geographic Concentration: The investment is inherently concentrated in a specific geographic location. A stagnant or depressed economy in the area could adversely affect the property's value and the ability to provide returns to investors.
Third-Party Property Managers: Dependence on third-party property managers introduces a risk factor. The success of the investment relies on their effective management, and any failure could impact the property's results of operations and reduce cash available for distributions.
Crop and Farmland Risk: Rice and soybeans, planned crops for the property, are subject to price volatility and weather conditions. Commodity price fluctuations and operational risks in farmland, including weather events and diseases, pose potential challenges to profitability.
Additional Risk Factors: Refer to the Private Placement Memorandum (PPM) for a full list of risk factors, including farmland volatility, weather-related risks, and potential economic impacts on the property value.
Investment Details:
- Minimum Subscription Requirement: $1,266,600
- Maximum Subscription Amount: $2,111,000
- Termination Date: June 12, 2024
- Target Hold Period: 3 - 6 years
Please see the Financials tab and the Investment and LLC Agreement for additional information. The Private Placement Memorandum (PPM) is available in the Documents tab to be viewed or downloaded. The PPM and offering descriptions should be read carefully to fully understand the objectives, risk factors, charges, and expenses of an investment.
