Blue Earth CountyMN

Blue Earth Farm

STATUS

Open

Blue Earth CountyMN

Blue Earth Farm

STATUS

Open

Description

The Blue Earth Farm is a 120 acre corn and soybean farm in Blue Earth County, Minnesota. This investment consists of a historically productive farm on a sale/leaseback with an experienced, local operator. This property was brought to AcreTrader off-market through business contacts, before it was officially listed on a public Multiple Listing Service or “MLS”.

Regional Significance

With over 450,000 acres in crop production, Blue Earth County sits in the heart of southern Minnesota’s productive row crop farm ground having harvested over 58 million combined bushels of corn and soybeans in 2022 according to the USDA 2022 Census of Agriculture. This region’s strength is non-irrigated production derived from robust annual rainfall of approximately 32 inches annually paired with clay loam soils that retain moisture throughout the growing season.

Why We Chose This Investment

Leaseback with Experienced Local Operator

AcreTrader is working with an operator who has farmed the ground for over 40 years and is selling to free up capital while maintaining operational control of the property. Having a tenant with such a long history on the property allows for a comprehensive understanding of the farm with an operator committed to improving the value of the asset. This is a sale-leaseback with an operator who is selling to improve other parts of his operation and the Company has agreed to a purchase option agreement allowing him to buy it back (at future market value) in 2028 or 2029. A two-year lease is in place with a base rate of $370 per tillable acre.

Acretrader's Regional Presence

Southern Minnesota is a common sourcing region for AcreTrader with Blue Earth Farm representing our 3rd offering in the region by AcreTrader Financial, LLC, a registered Broker-Dealer and the 11th total offering in the region. Following this acquisition, Acretrader Management, LLC will manage over 2,100* acres in Southern Minnesota.

Attractive Entry Price

According to Acres data, we believe this farm is being purchased at an attractive rate compared to recent area sales in a competitive, tenant-dense land market.

Fertile Soils

The Blue Earth Farm is a historically productive corn and soybean farm located in Blue Earth County, Minnesota. The soil on this property is very fertile, with a 92.8 CPI (Crop Productivity Index - rated out of 100), and a proven crop yield history of 217 bushels per acre of corn and 63 bushels per acre of soybeans.

*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: $787,000
Maximum Subscription Amount: $1,311,000
Termination Date: August 14, 2024
5 -7 year target hold period is anticipated.

**Please note that due to Minnesota’s farming laws, you may only invest in this farm as an individual (including SDIRAs and other individual retirement accounts) or a trust. Entities such as LLCs are not allowed to invest in this offering.

Please see the Financials tab and the Investment and LLP 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

Questions? Our team is here to help.

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Antanas Riskus
"Farmland and Timberland are asset classes that are not commonly well known among investors. I am happy to answer whatever questions you have so you can become more informed on the asset class."
Antanas Riskus
– Antanas Riskus
Manager, Investor Relations