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Q: What percentage of farm assets have not performed as expected, have not been able to meet the distribution goals?
A: That is a great question, and we love hard questions, so please don't be bashful.
We have acquired 46 farms to date. In December, we paid out 500 distributions. All 500 of those distributions were at or above target. I want to say they are all above target but I want to be cautious.
There was one farm, though we did not pay the distributions in 2020 for that we had hoped for. That farm was a permanent crop planting farm. It was early in the ramp up period. So the distribution was expected to be 0.9%. So it's a really nominal amount of cash, and the farmer and the sponsor there was ultimately deciding to hold on to some of the product that had come off those trees, and sell them into some more pricing strength this year.
So I'd say in terms of being off track, we don't view that as off track whatsoever. Though, again, I am focusing on that one instance when as a whole, we outperformed expectations on just about every front.
This video is a segment of a longer introductory webinar covering farmland as an investment, how AcreTrader works, and common questions asked by new investors. You can view the webinar in its entirety, or go to the next video in the series.
Note: The information above is not intended as investment advice. Past performance is no guarantee of future results. For additional risk disclosures regarding farmland investing and the risks of investing on AcreTrader, please see individual farm offering pages as well as our terms and conditions.