AcreTrader Management Exceeds Target Returns in Vermillion County, Illinois Row Crop Farm Disposition

(Fayetteville, Ark.)— AcreTrader, the platform offering investors access to the farmland asset class, exited a Vermillion County, IL corn and soybean row crop farm to provide an internal rate of return (IRR) of 10.4% to investors upon exit. This offering was funded on the AcreTrader platform in December 2022 and was sold in January 2024.

This exit yielded a return that surpassed the anticipated target for AcreTrader investors, attributable to a competitive entry price with consideration to comparable sales for properties of similar size and quality in the same region, consistent management, and favorable market conditions for farmland investments.

"The returns on farmland asset class investments thrive on the limited supply of premium farmland, as well as the increasing demands to sustain a growing global population's need for food, fuel, and fiber. Leveraging the informational advantage of the Acres platform alongside our local acquisition network and the thorough diligence of our underwriting team, we aim to offer investors access to this vital asset class," states AcreTrader Director of Investments, Drew Lipke.

The 80-acre farm was sold concurrently with the sale of other local AcreTrader-managed farms, resulting in a quicker-than-anticipated and favorable exit for investors.

AcreTrader is experienced in deploying its aggregation strategy in Illinois as it manages over four thousand acres of soil across the northern half of Illinois. Just under half of these acres are in northeast Illinois, east of the Illinois River. In addition to increasing exit optionality, aggregation fosters essential relationships with local farmers and experts, uncovering off-market opportunities, before they are officially listed by a real estate broker or agent on a public Multiple Listing Service, and deepening insights into regional land markets, which we believe can potentially result in more lucrative market results.

Farmland investments have demonstrated resilience in the face of market volatility, delivering historically consistent returns during recent decades' economic downturns such as the Dotcom Crash, the Great Financial Crisis, and the Covid-19 pandemic. In addition to its historical investment performance and its low volatility, farmland as an asset class’s performance has garnered increasing interest as an alternative investment.*

About AcreTrader

AcreTrader empowers customers to analyze land and invest with advanced technology, data, and expertise. AcreTrader offers access to farmland investing to accredited investors through its platform. For more information, including our terms of use, privacy policy, and risk factors, find out more by visiting acretrader.com.

Note that Investors in Acretrader 223, LLC purchased shares in an entity that purchased the farm but did not purchase actual acreage of the farm directly. Alternative investments are considered speculative, involve a high degree of risk, including complete loss of principal and are not suitable for all investors. Learn more about the risks of investing in farmland and the nature of the asset class by looking at our general risk factors. Investments are illiquid, not listed on an exchange, and not a short-term investment. Past performance does not guarantee future results. The above content is not intended to be a comparison between products, but is intended for general, educational and informational purposes only. Investment decisions should be made based on an investor’s objectives and circumstances and in consultation with your financial or tax professional. 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.

The IRR calculations displayed above assume the start date of the investment was on the closing date for the land acquisition and all other cash flows were recognized on the date Acretrader Management, LLC made the distributions to members. These calculations were i) made after the SPV was dissolved and all outstanding fees and taxes were paid; and ii) made solely at the entity level and may not be reflective of any investor's specific IRR which may differ based on factors specific to each such investor. Any hold period generally represents the time between the closing date for the land acquisition and the date the land was sold. Note that the information above is not intended as investment advice, nor is it a guarantee of any future performance or results.

Source: NCREIF Farmland Index 1990-2022. Past performance does not guarantee future results and there is no guarantee this trend will continue. You cannot invest directly in an index.