Jefferson County, GA
A

AcreTrader Rating (1)

Stapleton Farm

Jefferson County, GA
A

AcreTrader Rating (1)

Stapleton Farm

Description

Stapleton Farm is a 695 acre row crop farm in Jefferson County, Georgia. This county is home to 500 registered producers across approximately 125,000 acres of farmland. Such strong tenant density can drive competitive rent prices.

Stapleton Farm produces all four of the most significant crops in Jefferson County: cotton, corn, peanuts, and soybeans.

There is a five year lease agreement in place which starts in 2023. The lease includes a flex provision for all 4 crops grown on the property, which would trigger higher rent payments to be paid to investors in the event of increases in crop yields and/or commodity prices.

This flex provision assumes a base rental rate of $250 per acre, and the expected 2.6% net yield for this offering is based on that floor. The ceiling rounds out at $400 per acre, which would imply a maximum potential 4.5% net yield.

The base rent offers downside protection to investors, while the flex potential allows investors to participate in any upside due to market changes. Based on current commodity price levels as well as average regional yields in this area of Georgia, Stapleton’s flex would trigger for all four commodities grown on the property, providing a net cash yield within the 2.6%-4.5% range in addition to annual returns from land appreciation.

(See live examples of how a flex lease works in our Learning Center article.)

Stapleton Farm comprises two tracts less than two miles apart, with well maintained highway access between the two parcels. The acreage is 95% tillable/rentable, with ground consisting primarily of Dothan and Orangeburg sandy loams that are loose and well drained. Drainage is crucial for irrigated crops, especially cotton and peanuts, which flourish in these loose, sandy consistencies.

Stapleton Farm hosts seven irrigation pivots, all installed within the last two years. Each pivot is outfitted with endguns to extend irrigation range. The pivots draw from three wells on the western tract. Additional surface water is pumped from ponds and creek to the ease, effectively irrigating the entire tillable acreage.

The farm will be leased to a family team consisting of a father and two sons, all of whom reference checks have shown to be well-respected as well as active in the local agriculture community.

Investment Highlights

  • Flex lease allows for additional yield upside given above average crop yields and/or commodity prices

  • 5-10 year target hold period given stable cash flows and potential for long-term appreciation.

  • Invest in a hard asset with little or no correlation to other major asset classes.

  • The property will be managed by Acretrader Management, LLC, an affiliate of AcreTrader, Inc.

  • Cash distributions expected to occur annually, beginning in December 2023. Frequency of distributions may increase during future periods.

  • An initial email was sent with the total raise amount of $5,201,592 and the minimum investment amount of $18,700; this has been updated to $5,291,994 with a minimum investment amount of $19,025.

Additional Details

*The farm is presently enrolled in a Conservation Use Valuation Assessment (CUVA) program. We are raising additional funds to cover any penalties assessed by the county in the event the Company does not qualify for CUVA status.

Minimum Subscription Requirement: $4,762,794.60 Maximum Subscription Amount: $5,291,994 Termination Date: October 5, 2022

Risk Factors and Disclosures

Please see additional risk factors here and in the Issuer Document Package for a discussion of additional risks. 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 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 by to us from sources deemed reliable, we cannot guarantee its accuracy. The AT Parties further make no representations as to the accuracy or completeness of any such information and undertake no obligation now or in the future to update or correct this presentation or any information contained herein.

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