Sugar Creek Farm
Iroquois County, IL
The Sugar Creek Farm is a Northeastern Illinois corn, wheat, and soybean farm, located in Iroquois county and 90 miles south of the Chicago metro area. The farm consists of 96% tillable acreage with direct paved road frontage and has undergone major drainage tile work in the last 3 years that have improved crop yields.
The Sugar Creek Farm has a Productivity Index Rating of 130.8 (out of a range of 47 - 147) with historical crop yields that have exceeded county averages. In 2018, the farm averaged 241 corn bushesl per acre - 45 bushels per acre above the county average. A nearby dairy has expressed interest in purchasing corn silage from the property going forward, which typically brings a small crop premium.
The farm is currently rented through 2021 by a tenant farming several thousand additional acres, including multiple past AcreTrader investments. This investment includes a “flex” lease arrangement that provides an annual cash rental amount (see the financials tab which includes only this cash portion) plus an additional payment should commodity prices or farm crop yields increase above a pre-set threshold. This structure provides stability to the farmer while also allowing investors to share in any upside potential in above-average crop years.
5-10 year target hold period given stable cash flows and potential for material long-term appreciation.
Flex lease could improve investor income each growing season should commodity prices go up and/or with strong crop yields on the farm.
The property will be managed by AcreTrader Management, LLC, an affiliate of AcreTrader, Inc.
Standard AcreTrader management fee of 0.75% applies annually.
Anticipated cash distributions occur on December 15 annually, beginning December 2020.