Ardoch Farm
STATUS
Ardoch Farm
STATUS
Corn
Soybeans
Sugar Beets
Wheat
Potatoes
Available on:
Wednesday
1:00 PM Central
Description
The Ardoch Farm is a 157.2 acre corn, soybean, wheat, sugar beet, and potato farm located in Walsh County, North Dakota. This investment opportunity consists of a recently pattern-tiled farm with strong crop optionality in the top county in North Dakota for potato and sugar beet production.
Regional Significance
With over 675,000 acres in crop production, Walsh County is a core production area of the Red River Valley in North Dakota. The Red River Valley is a unique agricultural region of Minnesota and North Dakota and is named after the Red River, which serves as the boundary between the two states. The valley is the remnant of a large prehistoric lake and this unique geological history has resulted in a flat terrain with exceptionally fertile soil that is high in organic matter. The Red River Valley is known for the production of soybeans, corn, wheat, canola, potatoes and the region's most well-known crop, sugar beets. The Red River Valley produces approximately 44% of the sugar beets grown in the United States and is home to one of the country's largest sugar beet processors, American Crystal Sugar. The Ardoch Farm is located approximately 3 miles east of an American Crystal Sugar facility.
Why We Chose This Investment
Competitive Entry Price
According to Acres(1) data, we believe this Property 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. Please see page 15 of the PPM for details. We believe that purchase price relative to current market values is a primary driver of farmland returns.
Sale-Leaseback with Experienced Operator
The Ardoch Farm was sourced through AcreTrader’s local network as a sale-leaseback transaction that allows the seller to maintain operational control while unlocking equity to further expand their farming operation. The Property will be leased to the seller for a five-year term beginning in 2026 at a base rate of $200 per tillable acre with an annual escalator beginning in 2028.
Local Infrastructure
In addition to robust grain infrastructure, the Ardoch farm lies between two major sugar beet processing hubs in Grand Forks and Drayton, North Dakota. Grand Forks is also home to several potato processors with an additional large processing facility under construction that is expected to be fully operational in 2028.
Crop Optionality
The Red River Valley boasts robust crop optionality with corn, soybeans, wheat, canola, sunflowers, barley, dry beans, potatoes, and sugar beets all being grown in the valley. The Ardoch Farm specifically has recently grown a rotation of corn, wheat, and soybeans and is capable of growing other high value crops such as potatoes and sugar beets. The Red River Valley is the 3rd largest producer of potatoes in the United States and the largest producer of red potatoes serving the fresh market.
AcreTrader’s Regional Presence
While the Ardoch Farm is AcreTrader’s first offering in North Dakota, the broader Red River Valley is a frequent sourcing region for AcreTrader. The Ardoch Farm represents our 10th offering in the Red River Valley. Acretrader has sourced and currently manages approximately 2,200 acres in the region.
(1) Acres, is a geospatial land intelligence platform designed to improve land management and purchasing decisions. Using public and private market data, Acres aggregates and analyzes over 150 million parcels of land to enable users to better understand and maximize the value of their property.Additional Details
Minimum Subscription Requirement: $588,600
Maximum Subscription Amount: $981,000
Termination Date: 6/25/2026
Please see the Financials tab and the Investment and Limited Liability Partnership 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.
*Please note that the form of entity is an LLP rather than an LLC
*Please note that due to North Dakota’s farming laws, you may only invest in this farm as an individual (including a select few SDIRAs and other individual retirement accounts) or a revocable trust. Entities such as LLCs are not allowed to invest in this offering.
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, wheat, 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
Securities offered by North Capital Private Securities Corporation (“NCPS”), a broker-dealer registered with the SEC and a member of FINRA | SIPC. Their Form CRS can be viewed here.
Alternative asset investing is speculative, involves a high degree of risk, including complete loss of principal, and is not suitable for all investors. Alternative investments are illiquid, not listed on an exchange, and not a short-term investment. Distributions are not guaranteed. Changes in tax law may adversely affect offerings. This offering is a private offering and is not registered under the Securities Act or under any state securities laws or the securities laws of any other jurisdiction. There is no assurance any investment will achieve its objective.
Note that Investors are purchasing shares in a newly formed entity that will purchase this farm but are not purchasing actual acreage of the farm directly. The entity will directly own the farmland. Farmland investments are also subject to additional risks including volatility in commodity prices, water accessibility, weather events or disease that could damage crops and many other operational factors. Economic implications include potential increased production costs and reduced crop yields.
The PPM contains a complete list of all Risk Factors and should be read carefully before investing. 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 Platform, LLC, 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 to us from sources deemed reliable, we cannot guarantee or make representations as to its accuracy or completeness. The AT Parties undertake no obligation now or in the future to update or correct this presentation or any information contained herein.
Please be advised that certain registered representatives of NCPS who are performing sales activities on behalf of NCPS in connection with offerings on the AcreTrader Platform may also be providing services to other entities affiliated with the offerings, including but not limited to the issuer of this or other investment offerings on the AcreTrader Platform. Such services might include, but are not limited to, sourcing real estate, conducting land due diligence, negotiating real estate purchases, preparing marketing and other investor-facing materials, land management-related administrative services and authorizing investments. The registered status of such personnel creates inherent conflicts of interest for a number of reasons, including but not limited to the fact that they may gain financially from your investment, directly through commission payments or indirectly by receiving compensation from the issuer or an affiliate of the issuer. Registered representatives are not presently anticipated to receive commissions in connection with their sales activities for AcreTrader Platform offerings.
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