Green River Farm
STATUS
Green River Farm
STATUS
Corn
Soybeans
Available on:
Tuesday
1:00 PM Central
Description
The Green River Farm is a 237 acre corn and soybean farm in Lee County, Illinois. This investment opportunity consists of a historically productive farm with Class A soils, as defined by the American Society of Farm Managers and Rural Appraisers, in a core region of the Corn Belt. This property was brought to AcreTrader through our local agricultural network and will continue to be farmed by the operator who has been operating on this land for over 50 years.
Regional Significance
Lee County, Illinois is located in the heart of the Corn Belt. This area is often defined as the portion of the Midwest stretching from western Ohio to eastern Nebraska that is dominated by the production of corn and soybeans. Illinois, specifically, ranks in the top five states nationally for corn yield per acre for seven of the past ten years according to the USDA. This productivity is primarily driven by two factors: fertile silt loam or clay loam soils alongside robust average annual rainfall. Unsurprisingly, land values and lease rates in the Corn Belt reflect this productivity, especially across Illinois and Iowa.
Why We Chose This Investment
Historically Productive Property
The Green River Farm is a historically productive corn and soybean farm located in Lee County, Illinois. The farm’s 220.72 tillable acres carry an average soil Productivity Index (PI) of 136.8, well above the established threshold of 133 for Class A soil in Illinois. The farm has produced an average yield of 235 bushels of corn and 62 bushels per acre of soybeans across the past two years.
Lease with Experienced Operator
The farm will be leased to the current operator who has operated the farm for over 50 years. The lease is a two-year term beginning in 2025 at a base rate of $395 per tillable acre.
AcreTrader’s Regional Presence
Northern Illinois is a common sourcing region for AcreTrader with the Green River Farm representing the 4th offering in the region by AcreTrader Financial, LLC, a registered Broker-Dealer and the 27th total offering in the region. Following this acquisition, Acretrader Management, LLC will manage over 4,200* acres in Northern Illinois.
Competitive Entry Price
According to Acres data, we believe this farm is being purchased at a below-market entry price based on available comparable sales of properties of similar size and quality in the same region, which is an active, tenant-dense land market.
*Calculated by combining acres from offerings by AcreTrader Financial, LLC with acres under management by its affiliate, Acretrader Management, LLC.
Additional Details
Minimum Subscription Requirement: $1,715,00
Maximum Subscription Amount: $2,858,000
Termination Date: August 21, 2024
5-7 year target hold period is anticipated.
Please see the Financials tab and the Investment and LLC Agreement for additional information. The Private Placement Memorandum (PPM) is available in the Documents tab to be viewed or downloaded. The PPM and offering descriptions should be read carefully to fully understand the objectives, risk factors, charges, and expenses of an investment.
Risk Factors
Please refer to the PPM for the full list of risk factors.
Geographic Concentration
The Company’s activities will be limited to acquiring and holding the Property as an investment and are therefore inherently concentrated in a specific geographic location. A stagnant or depressed economy in the area in which the Property is located could adversely affect the value of the Property and the Company’s ability to provide a return or any profit to investors.
Third-party property managers may not be effective
The Manager, on behalf of the Company, may retain third-party property managers who will, under the supervision of the Manager, oversee the day-to-day operations of the Property by the tenants. The success of the Company will, accordingly, depend on the performance of such third-party property managers, and their failure to successfully perform their management duties could adversely impact the Property’s results of operations and could reduce cash available for distributions to Members of the Company.
Crop Risk
Corn and soybeans are planned to be grown on the property. These commodities are subject to price volatility that could result in selling prices below break-even for the operator. Commodities are also subject to weather conditions including but not limited to drought, flood, and hail.
Farmland Risk
Farmland investments are also subject to additional risks including volatility in commodity prices, weather events or disease that could damage crops and many other operational factors.
Disclosures
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