Northwest Corner of ranch looking East- Disced Corn field
Southeast Corner looking West-Alfalfa Field
Middle of Ranch Looking East
Middle of Ranch looking West- Disced corn fields
Please review the Memorandum of Lease and Purchase Option in the documents tab
Stockton Farm is a 241 acre alfalfa, wheat, and tomato farm in San Joaquin County, California. This is an opportunity to invest in a short term, yield focused project in a historically water-secure area to enable an existing AcreTrader farm sponsor to secure an attractive property for future development.
This property is an off-market opportunity identified by Delta Farm Management, LLC, (DFM) a farm sponsor with whom AcreTrader has worked on a previous almond development in this region. DFM is a team with significant prior experience in direct farm operations, developing successful almond orchards, and ag financing.
In the case of Stockton Farm, AcreTrader worked with DFM to find a solution that would allow them to secure the property at an attractive price, while providing time for them to arrange the long-term financing needed to complete a full scale almond development.
The property will be leased to DFM at a rate well above market rent in the area. The lease agreement includes a Lease Purchase Option allowing Delta Farm Management to purchase this property from the Company (i.e., the Acretrader entity into which Stockton Farm will be placed and in which investors will purchase shares) following a minimum 6-month hold period at a purchase price equal to the Company’s acquisition price.
This investment has an intended short term hold of 6-12 months and a higher annual net yield of 7%, with no member participation in any price appreciation in the land. Distributions are expected to be made every 6 months, with the first expected in June 2023.
Historically, Stockton Farm has grown a rotation of alfalfa, wheat, tomatoes, and corn. During the hold period, it will be planted to winter wheat. It is the tenant’s intention to purchase the property following a minimum 6 month hold period to develop the ground to almonds.
Stockton Farm enjoys historically highly secure water rights, as assessed by a water rights report. The property is located on Roberts Island within the Sacramento River Delta, where two of California’s largest rivers converge. Stockton Farm lies in the Central Delta Water Agency abutting Burns Cutoff, a distributary to the San Joaquin River.
This farm has riparian water rights off the San Joaquin River. There is presently no quantity limit associated with these riparian rights. A riparian right holder is allowed to divert that amount of water which can be beneficially used on the property.
In addition to riparian rights, two parcels also contain an appropriative right through Water License 1345, which was issued in 1926 and allows for the diversion of an additional 4.7 cubic feet per second each year.
Water is often the mitigating factor for permanent crop developments in California’s Central Valley. The Sacramento Delta’s unique geology allows almond orchard developments with highly secure water. Please see AcreTrader’s recent Almond Market Update to understand our view of the outlook for water-secure almond orchards.
6-12 month target hold period with 7% net yield and no land 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.
The property will be leased to Delta Farm Management, an existing AcreTrader Farm Sponsor Partner. Delta Farm Management intends to purchase the property through the exercise of a Lease Purchase Option after a 6 month minimum hold period to develop into an almond orchard.
AcreTrader management fee of 0.50% applies annually.
An upfront 2% acquisition fee will be paid on behalf of the company to AcreTrader, Inc. Please see the Financials tab and the Investment and LLC Agreement for additional information.
Cash distributions are expected to begin in June 2023.
Minimum Subscription Requirement: $3,874,312.80 Maximimum Subscription Amount: $4,304,792 Termination Date: March 1, 2023 Please refer to the Investment Agreement in the Documents tab for more information on these terms.