Pike Creek Farm

Iroquois County, IL

A

AcreTrader Rating (1)

Description

The Pike Creek Farm is a 204 acre parcel located on the Illinois/Indiana state line in Iroquois and Newton counties. The farm consists of two tracts totaling 157 acres in Illinois and 47 acres in Indiana. With 198 tillable acres, the farm is 97% tillable and boasts strong soils with a Productivity Index (PI) of 120.3 on the Illinois side, and National Commodity Crop Productivity Index (NCCPI) of 66.9 on the Indiana side. While the states have their own respective soil quality score, and both of these are above county averages.

The farmer has agreed to a 3 year lease through the 2023 crop season. The lease consists of a flex agreement with a base cash rental rate of $255 per acre with an upside revenue share for above average yields or commodity prices. The Gross Cash Yield only reflects the base case, but the sensitivity chart may be found in the photos above. As an example, given typical productivity on this farm and current commodity prices, this flex lease would have been triggered in 2020 and paid a rental rate above the cash rental floor and resulted in a higher cash yield.

Additional funds are being raised to add tiling to the farm in order to improve drainage and overall productivity. This tile will improve growing conditions on the farm. These improvements typically increase crop yields and future property values. Because this farm will be rented under a "flex leasing" arrangement, investors will participate in the benefits of the crop yield increases.

Investment Highlights

  • 5-10 year target hold period given stable cash flows and potential for long-term appreciation.

  • Invest in a hard asset with little or no correlation to other major asset classes.

  • The property will be managed by Acretrader Management, LLC, an affiliate of AcreTrader, Inc.

  • Flex lease could improve investor annual income should commodity prices go up and/or with strong crop yields on the farm. The maximum rent per acre to be paid under the flex lease will be capped at $315 per acre.

  • Standard AcreTrader management fee of 0.75% applies annually.

  • Cash distributions expected to occur annually, beginning in December 2021. Frequency of distributions may increase during future periods

Risk Factors and Disclosures

Please see additional risk factors here and in the Issuer Document Package for a discussion of additional risks. The above presentation is based upon information supplied by the seller and others, and some images shown may be used for representative purposes and may not have been taken on location at the subject property. While AcreTrader performs extensive due diligence on the offerings on our Site, certain of the information presented in each offering may have been provided by third party sources. Therefore, AcreTrader and its respective affiliates, officers, directors or representatives (the "AT Parties") hereby advise you that while all such third party information contained herein has been provided by to us from sources deemed reliable, we cannot guarantee its accuracy. The AT Parties further make no representations as to the accuracy or completeness of any such information and undertake no obligation now or in the future to update or correct this presentation or any information contained herein.

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