Renville Farm

Renville County, MN

A

AcreTrader Rating (1)

Description

The Renville Farm is a 160 acre farm approximately 75 miles west of Minneapolis, Minnesota. The farm has excellent soils, including Nicollet, Clarion, and Webster and has a Productivity Index score of 90 out of 100 points. The Productivity Index is a unique scoring mechanism used to rank cropland soils in Minnesota, with 100 being the highest possible score.

The farm has historically produced corn and soybeans, but will be planted in peas in 2021. AcreTrader is working with a local farmer, Fitzgerald Farms, to begin transitioning this farm to Certified Organic production. This is a 36 month process that will begin in Spring 2021. The Fitzgerald family has been farming organically for over 20 years.

This farm is also a value-add opportunity, with $120,000 in additional capital being raised to clean up the farm perimeter and install drainage tile throughout. These improvements typically make a farm more productive, allowing for higher crop yields and easier farm access. These improvements will be completed in the first 12 months of the investment period.

Investment Highlights

  • 10-12 year target hold period given stable cash flows and potential for long-term appreciation.

  • Farm is going to be transitioned to Certified Organic production beginning in 2021. This is a 36 month process. Farm income, and farm rents, will increase after the transition to Organic production is complete. This is reflected in the five year average farm income, on the financials page.

  • Farm is being improved with significant tile and drainage work.

  • 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.

  • 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.

Additional Details

  • Please note that the form of entity for this offering is a LLP rather than an LLC.

  • Please note that due to Minnesota's farming laws, you may only invest in this farm as an individual. Entities such as LLCs are not allowed to invest in this offering.

  • Company has agreed to grant a Right of First Refusal to the farmer/tenant upon sale of the farm.

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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