Black Oak Farm
STATUS
Black Oak Farm
STATUS
Corn
Cotton
Soybeans
Available on:
Tuesday
1:00 PM Central
Description
The Black Oak Farm is a 182.65 acre corn, cotton, and soybean farm located in Poinsett County, Arkansas. This investment is an opportunity consisting of a farm with robust optionality for cotton and grain crops in a core region of the Mississippi Delta.
Regional Significance
With over 300,000 acres in cotton, corn, rice and soybean production, Poinsett County sits in northeast Arkansas and is part of the broader Mississippi Delta region. We believe this region’s strength lies in the irrigated production of cotton, corn, soybeans, and rice derived from fertile alluvial soils and robust groundwater resources.
The Black Oak Farm’s investment thesis is rooted in its location within Buffalo Island, a premium sub-region of the Arkansas Delta. The "island," situated between the St. Francis River and the Little River Floodway, is renowned for possessing some of the state's most productive soils and superior groundwater resources. This exceptional combination of fertile soils and reliable irrigation, coupled with proximity to key agricultural infrastructure, drives Buffalo Island to command some of the most competitive rental rates in Arkansas.
Why We Chose This Investment
Crop Optionality
The Black Oak Farm has historically grown a rotation of corn, cotton, and soybeans. Since 2018, the Property has produced robust average yields including 236 bushels per acre of corn, 62 bushels per acre of soybeans, and 1,475 pounds per acre of cotton.
Value Add Improvement
Included in the capital raise is a $52,500 budget to improve the on-farm drainage infrastructure and topography. The drainage ditch on the Property will be improved to better facilitate removal of potential excess surface water while the acreage surrounding the ditch will be graded to improve irrigation efficiency and consistency.
AcreTrader’s Regional Presence
The Mississippi Delta is a common sourcing region for AcreTrader Management. The Black Oak Farm represents our 11th row crop offering in Arkansas. AcreTrader management has two full cycle investments for Arkansas farms that resulted in realized net IRR’s of 9.4% for both properties. The complete list of ATM exited investments is available here.
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.
(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: $867,000
Maximum Subscription Amount: $1,445,000
Termination Date: 03/25/2026
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, cotton 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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