Cass Organic Farm
STATUS
Cass Organic Farm
STATUS
Corn
Soybeans
Forage
Available on:
Wednesday
1:00 PM Central
Description
The Cass Organic Farm is a 139.9 acre organic corn and soybean farm in Cass County, Michigan. This is an opportunity to invest in an established organic property with robust water resources and irrigation infrastructure in a region known for grain and vegetable production.
Regional Significance
Michigan is home to over 80,000 producers farming over 7.5 million acres of cropland. The state benefits from robust rainfall, abundant groundwater resources, and sandy loam soils that provide significant crop optionality. Southwest Michigan is known for the production of corn, soybeans, forage crops, vegetables, melons, fruits, and potatoes. Cass County, Michigan sits in the Southwest Michigan agricultural corridor that is heavily utilized for grain, vegetable, fruit, and potato production. Cass County, Michigan consistently ranks in the top ten counties in Michigan for vegetable, melon and potato production in addition to ranking in the top five counties for hog and dairy production, further driving local demand for organic corn and soybeans.
Why We Chose This Investment
Robust Water Resources & Irrigation Infrastructure
Cass County, Michigan contains robust and highly accessible groundwater resources, with a water table that is stable, and rapidly replenishing. Cass County averages approximately 40.5 inches of annual precipitation, which when coupled with the underlying geology of glacial drift deposits allows the aquifer to recharge rapidly. The Cass Organic Farm contains 123 tillable acres, 120 of which are irrigated with center pivot irrigation. The loamy sand soils on this farm are sought after in the region as they allow water to infiltrate quickly through the soil profile, handling moisture well without waterlogging.
Sale Leaseback with Experienced Operator
The property is being purchased from and leased back to an established organic farming operation in the region. The tenant has owned and operated the farm for 15 years while guiding the farm through the organic transition process and farming organically for over a decade. The long term lease aligns incentives between the operator and investors, while also providing significant cash flow visibility.
Premium Prices from Organic Production
The United States is a net importer of organic corn and soybeans due to robust demand from domestic organic dairies and organic production of proteins including poultry, pork, and beef. As a net importer with effectively no exports of organic corn and soybeans, protectionist trade policies and prevailing consumer preferences may increase demand for domestic organic production of these commodities. Despite this strong demand and favorable price premiums over conventional crops, domestic organic acreage has stagnated, creating favorable supply/demand dynamics for domestic producers. This imbalance is further compounded by the challenging and costly three-year transition period required to certify new organic acreage.
AcreTrader’s Regional Presence
Michigan is a common sourcing region for Acretrader. The Cass Organic Farm represents our 5th offering in Michigan and 2nd organic offering in the state. Acretrader has sourced and managed approximately 1,600 acres in Michigan.
Additional Details
Minimum Subscription Requirement: $737,400
Maximum Subscription Amount: $1,229,000
Termination Date: 10/1/2026
5-10 year target hold period is anticipated.
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.
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
Grain and Forage crops 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
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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