What a Broker-Dealer Means for You

March 29, 2023

As of March 17, 2023, AcreTrader Financial, LLC, the wholly-owned subsidiary of AcreTrader, Inc. that will offer private placements, is operating as a registered broker-dealer and member FINRA/SIPC.

A broker-dealer is a person or firm in the business of buying and selling securities on behalf of clients, itself, or both. Broker-dealers in the United States are regulated by the Financial Industry Regulatory Authority, more commonly known as FINRA. FINRA employs strict standards and a rigorous evaluation process in order to qualify to become a broker-dealer.

We believe that this is a major positive development in our business that will help us provide both farmers and investors easier access to the benefits of land.

But what does it mean for you, specifically?

For Investors

By becoming a registered broker-dealer, we believe investors on the AcreTrader platform will benefit from having a greater number of land investment opportunities as well as investing alongside expert growers and operators.

By expanding growth opportunities for farmers, AcreTrader’s broker-dealer registration is expected to expand opportunities on the platform for you to:

Diversify your farmland portfolio with exposure to a broader variety of crop types, regions, and operators
Exercise more choice due to increased deal flow on the platform
Co-invest with experienced farm operators who have skin in the game

"When you combine the investment expertise of our in-house farm team with the local market knowledge and local relationships our farm partners possess, it can create a truly unique land sourcing capability for investors on our platform.” —Drew Lipke, Director of Investments

For Farmers

In order to keep growing your business, you need sources of capital that don’t leave you strapped for cash or disempowered in the operation of your farm.

Our Farm Sponsor model is an alternative financing option in which farmers raise equity capital from investors, acting as investment offering sponsors and principal partners.

Farm Sponsors source, structure, and drive their own investment offerings. Becoming a broker-dealer will allow AcreTrader to act as an advisor to farmers throughout this process.

The value of the sponsor model is to enable you to:

Expand your business without taking on debt
Maintain control of your own operation
Have a co-investment ownership stake in your offering
Earn additional financial upside based on farm business performance

“By bringing farmland investment opportunities to our platform that they not only want to farm, but also want the ability to co-invest in and receive a potential carried interest in the project, our Farm Sponsors have a truly unique ability to build and expand their farming enterprises.” —Drew Lipke, Director of Investments

Final Thoughts

For us, success means crafting models and products that align farmers and investors in mutually beneficial ways. We believe that operating as a broker-dealer will allow AcreTrader to further serve our clients and farming partners as a transparent conduit.

Our goal with becoming a registered broker-dealer is to further support enterprise and innovation in agriculture and to expand opportunity and access within the historically powerful asset of land. We’re excited to continue to partner with you in pursuit of new opportunities in land investment in the coming months and years.

Securities are offered through AcreTrader Financial, LLC, a registered broker-dealer, member FINRA/SIPC.

The above content is not intended to be a comparison between products, but is intended for general, educational and informational purposes only. Any performance noted is historical and there is no guarantee any trends will continue. All investing involves risks, including the complete loss of principal. Diversification does not guarantee a profit or protect against loss in a declining market. It is important for each investor to review their investment objectives, risk tolerance, tax liability and liquidity needs before investing. Investment vehicles have differences in fee structure, risk factors and objectives. Investments are considered speculative, involve a high degree of risk and therefore are not suitable for all investors. See additional risk disclosures regarding farmland investing and the risks of investing on AcreTrader.com.

Drew Lipke

Director of Investments

Drew grew up in Little Rock and has owned farmland in central Arkansas since 2014. He joined AcreTrader in 2021 after spending two years as a Managing Director of credit analysis at a large fixed income broker-dealer in Little Rock. Earlier, he spent five years in equity research and seven years in institutional equity sales at Stephens Inc. In 2017, he was voted to Institutional Investor’s All-America Research Team Rising Stars for his Aerospace & Defense sector coverage. He holds Series 7, 63, 65, 86, and 87 licenses with the Financial Industry Regulatory Authority (FINRA). He graduated from the University of Georgia’s Terry College of Business.