Productive Iowa Row Crop Farm

Palo Alto, IA

A

AcreTrader Rating (1)

Description

Iowa is known for having some of the best quality farmland in the world, and this row crop farm is located in the highly sought after northern region of Iowa. The previous owner has recently completed extensive drainage work on the property, and the current farm tenant is utilizing best management practices inclusive of a likely manure-influenced fertility plan. The tenant has recently agreed to a favorable 2-year lease that provides the stated cash yield with upside potential should commodity prices or farm crop yields improve.

Investment Highlights

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

  • Flex lease could improve investor income by as much as 20%-30% for both the 2020 and 2021 growing seasons should commodity prices go up and/or with strong crop yields on the farm.

  • Existing farm income slightly augmented by payments from area wind energy company for an easement.

  • Palo Alto County has experienced rapid wind energy expansion in the area of this farm recently, with most turbines expected to be operational sometime in 2020. This should create additional wealth in the area for years to come which can be supportive to future land value expansion in the region.

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

  • Standard AcreTrader management fee of 0.75% applies annually.

  • Anticipated dividend payments occur on December 15 annually, beginning December 2020.

Additional Details

Please note that due to Iowa's farming laws, a few restrictions exist regarding this investment opportunity:

  • You may only invest in this farm as an individual. Entities such as LLCs are not allowed to invest in this offering.

  • If you currently have an interest in a different LLC that owns farmland in Iowa, you are restricted from investing in this farm.

  • If you invest in this farm, you may be precluded from investing in other farms in Iowa specifically. You will be able to continue investing in all other states on the AcreTrader platform.

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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