Cottonwood Palouse Farm
STATUS
Cottonwood Palouse Farm
STATUS
Barley
Wheat
Canola
Chickpea
Green pea
Oat
Available on:
Tuesday
1:00 PM Central
Description
The Cottonwood Palouse Farm is a 501.45 acre wheat, chickpea, barley, pea, oat and canola farm located in Idaho County, Idaho. This investment is the first offering in the Palouse region of northwest Idaho on the AcreTrader platform and consists of a farm with robust crop optionality.
Regional Significance
The Palouse region’s unique topography is a result of glacial erosion that created immense amounts of sediment which was then wind blown and deposited in rolling hills known as loess. The Palouse spans northwest Idaho to southeastern Washington and is known for its rolling hills, deep loess soils, and favorable climate for dryland farming. The region’s semi-arid climate with winter precipitation supports dryland (non-irrigated) farming, with snowmelt typically contributing to soil moisture. The Palouse is a leading wheat-producing region in the United States, particularly for soft white winter wheat, which is used in pasta and pastries, while other key regional crops include barley, canola, lentils, and chickpeas.
Why We Chose This Investment
Crop Optionality
Over the past ten years, the Cottonwood Palouse Farm has grown a wide variety of crops including barley, canola, chickpeas, green peas, oats and wheat. This varied crop rotation speaks to the agricultural diversity of the Palouse region and demonstrates the suitable climate and soils for a variety of grains and pulse crops.
Sale-leaseback with an Experienced Operator
The Property was brought to AcreTrader by the current operator whose family has operated the farm for over 50 years. As a condition of the sale, the farm will be leased to the current operator on a 5-year term beginning in 2025 at a rate of $160 per tillable acre. This compares to the all-in purchase price of $4,309 per tillable acre.
First Offering in the Region
This offering represents AcreTrader’s first investment in the Palouse region. This agricultural region has been traditionally difficult to source from as it is characterized by large, closely-held family farms often owned for multiple generations with historically limited ownership turnover.
Additional Details
Minimum Subscription Requirement: $1,228,800
Maximum Subscription Amount: $2,048,000
Termination Date: 12/17/2025
5-10 year target hold period is anticipated.
Please see the Financials tab and the Investment and Limited Liability Company 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
Canola, chickpeas, wheat, barley, oats and green peas 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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