East Point Farm
STATUS
East Point Farm
STATUS
Soybeans
Yellow corn
Popcorn
Available on:
Thursday
1:00 PM Central
Description
The East Point Farm is a 219.8 acre popcorn, corn and soybean farm in White County, Indiana. This investment opportunity consists of a Class A farm with a strong production history, including popcorn, in one of the Midwest’s most competitive and productive farming regions.
Regional Significance
Northwest Indiana is home to some of the most productive and highest value farmland in the Midwest. White County, Indiana produces over 248,000 acres of corn and soybeans, in addition to significant livestock production of over 250,000 hogs annually. White County ranks 1st in Indiana for both value of grain and oilseed production and value of swine production. Agricultural regions with large-scale livestock production often benefit from robust local demand for feed grains such as corn and soybeans while crop producers also often have access to livestock manure as an abundant and affordable source of soil fertility.
Why We Chose This Investment
Strong Production History of Popcorn, Corn, and Soybeans
The East Point Farm is a historically productive corn and soybean farm located in White County, Indiana. With 215.27 tillable acres and a Weighted Average Productivity Index (WAPI) of 172.3, this farm features the highest soil productivity rating of any Indiana property offered on the AcreTrader platform to date. In addition to the farm’s highly productive soils, the farm has been partially pattern tiled since the 1990s, which increases drainage and overall productivity. The farm has produced an average yield of 246 bushels per acre of corn and 77 bushels per acre of soybeans across the past four years of production and has grown popcorn for the Orville Redenbacher brand. Unlike field corn, popcorn is grown almost exclusively under contract with processors, many of which have heavy footprints in Indiana. Popcorn is a much more high maintenance crop when compared to field corn from an agronomic perspective. Popcorn seed is harder and less vigorous, germinates slower and thus needs warmer soil temperatures, generally has weaker and thinner stalks which are prone lodging and difficult to harvest, and popcorn is sensitive to many common herbicides. In addition, popcorn must be isolated from field corn and sweet corn to avoid cross-pollination. Indiana is the #2 popcorn producer in the United States, competing closely with Nebraska.
Competitive Lease with Experienced Operator
The East Point Farm is an off-market transaction that will allow the existing operator to maintain long-term operational control of the farm. The previous landowner first offered the property to the existing operator, who AcreTrader was then able to partner with to purchase the property. The tenant has farmed the East Point Farm for the past four years growing a rotation of popcorn, yellow corn, and soybeans. The Property is leased for a three-year term beginning in 2026 at a rate of $500 per tillable acre.
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.
AcreTrader’s Regional Presence
Indiana is a frequent sourcing region for AcreTrader. The East Point Farm represents our 10th offering in the state and 1st in White County. AcreTrader has sourced and managed over 1,600 acres in Indiana, including 2 full cycle exited Indiana corn and soybean farmland investments that resulted in realized net IRR’s of 18.0%, 16.0%, respectively. The complete list of AcreTrader Managed exited investments is available here.
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Additional Details
Minimum Subscription Requirement: $2,076,000
Maximum Subscription Amount: $3,460,000
Termination Date: 5/22/2026
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
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
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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