The real estate crowdfunding platform AcreTrader has launched a new offering for a 145-acre farm in Redwood County, Minnesota. 

Situated in a strong farming region with over a half million acres, Frontier Farm will be cultivating corn and soybean crops. Because of their high fat and protein content, soybeans are considered to be the most valuable oilseed. Investors can receive fully passive income from the crop sales generated from these two-row crops along with the appreciating value of the farm.

The crop productivity index (CPI) is used to measure the ground and soil’s ability to grow crops. Frontier Farm boasts a CPI rating of 93.1, which far exceeds the region’s average of 86. This CPI indicates that Frontier Farm sits on fertile ground, which will certainly help investors in receiving returns on the row crops being produced.

Within this offering are plans to allocate $50,000 toward improving the farm’s drainage system. This capital improvement project will aid the current drainage system in effectively moving water off of the property, which will allow the farmers to take advantage of the highly productive soil profile. 

Aside from the appreciating land value and income generated from the row crop production, investors will also receive passive income through the lease agreement. The lease includes a flex component: The two-year lease at a rate of $415 per acre will be reworked to match the added value of the land if yields or commodity prices rise. The expected annual crop income is $54,851.

• Minimum investment: $16,290
• Target internal rate of return (IRR): 8.3%
• Target cash yield: 3.5% gross, 2.4% net
• Target investment term: five to 10 years

View details on Acretrader’s offerings

Since its inception, AcreTrader has been one of the premier farmland investing platforms in the market. After recognizing both the historically strong returns and low volatility of farmland combined with often-high financial barriers, AcreTrader has made it possible for average investors to buy into this lucrative market. 

Investment in farmland often acts as a hedge against inflation. Since 1990, the first year of the farmland investment index, there has been a positive return every year, making this asset class increasingly attractive for investors looking to diversify their portfolios