AcreTrader’s Latest Farmland Disposition Exceeds Projected Returns
AcreTrader’s Latest Completed Investment Demonstrates Historical Strength of Alt Asset Class Amidst Ongoing High Inflation
(Fayetteville, Ark.)— AcreTrader, the land investment platform at the intersection of agriculture, tech, and finance, recently added another successful farm disposition with the sale of a Yazoo County, Mississippi farm. Funded on the AcreTrader platform in February of 2021 and sold in November 2022, the investment resulted in a preliminary IRR of approximately 11.4%, exceeding the initial projected return of 8.3%.
This 976 acre irrigated farm grows corn and soybeans and benefits from strong groundwater and aquifer access within the Mississippi River Delta. AcreTrader received multiple unsolicited offers for the farm, accepting the latest and most competitive offer from a local individual buyer.
This exit comes on the heels of four previous fully completed investments in the past year with higher-than-expected returns attributing farmland appreciation as the largest driver. Together, AcreTrader’s five total dispositions to date have returned a weighted average IRR of 14.1%.
Looking at annual data collected by the USDA and Bureau of Labor Statistics, farmland's historical positive correlation with inflation levels is well-documented for at least the past four decades. A 2020 study published by the TIAA Center for Farmland Research indicated that farmland had a generally positive spread to the Consumer Price Index, a common measure of inflation in the U.S., between 1970 and 2019.
“It’s encouraging to see continued growth in land values drive farmland performance for investors, especially in our current inflationary environment. We’re proud to offer investors exposure to an asset with appreciation and wealth preservation potential,” said AcreTrader Founder and CEO Carter Malloy.
About AcreTrader AcreTrader empowers its customers to buy and sell land smarter through advanced technology, data, and expertise. Since its founding in 2018, AcreTrader has broadened access to buy, sell, and invest in land for thousands of investors, farmers, and landowners across the U.S. Find out more by visiting acretrader.com and explore current offerings at acretrader.com/explore.
*Supplemental Information: 1) The calculations for the preliminary IRR reported above assume that the start date of the investment was on the closing date for the land acquisition and the end date was the date the distribution of net proceeds from the real estate sale was initiated to Members. 2) A portion of the total sale proceeds have been withheld to pay taxes and fees required to dissolve the Company. If any funds remain in the Company’s bank account after all taxes and fees have been paid, each investor in the Company will receive his/her/its pro rata portion in a final distribution. 3) Final IRR calculations will be made after the Company has been dissolved and all outstanding fees and taxes have been paid. 4) Note that the above IRR was calculated solely at the entity level and may not be reflective of an investor's specific IRR which may differ based on factors specific to each such investor. 5) Note that the information above is not intended as investment advice. Past performance is no guarantee of future results. For additional risk disclosures regarding farmland investing and the risks of investing on AcreTrader, please see individual farm offering pages as well as our terms of use.
