Tippecanoe Farm
STATUS
Tippecanoe Farm
STATUS
Corn
Soybeans
Description
The Tippecanoe Farm is a 197.6 acre corn and soybean farm located in Tippecanoe County, Indiana. This investment opportunity consists of a farm with a strong production history in west central Indiana, a highly competitive, tenant-dense region that is one of North America’s most productive agricultural regions.
Regional Significance
With over 213,000 acres of cropland in production, Tippecanoe County sits in west central Indiana and is also the home of Purdue University. Indiana is known for production of corn and soybeans primarily with over 91% of cropland acres in Tippecanoe County being dedicated to corn and soybean production.
Why We Chose This Investment
Competitive Entry Price
According to Acres(1) data, we believe this Property is being purchased at a below-market entry price based on available comparable sales of properties of similar size and quality in the same region, which is an active, tenant-dense land market.
Highly Productive Soils in a Competitive Tenant Market
The farm’s 190.76 tillable acres carry an average soil Weighted Average Productivity Index (WAPI) of 160.3, which is often considered Class A soil in Indiana. In addition, the project includes a minor improvement budget to add and repair tiling in order to improve drainage and overall farm productivity. West central Indiana is a highly competitive tenant market. According to the USDA, there are 151 cropland acres per producer in west central Indiana, making it one of the most tenant dense regions in the country.
Flex Lease with Experienced Operator
The Property is expected to be leased to a local operator for a three-year term beginning in 2025 at a base rate of $400 per tillable acre. Additionally, the lease includes a flex component, which provides for payment of base rent and an opportunity for potential bonus rent in the case of higher crop yields and/or higher commodity prices.
AcreTrader’s Regional Presence
Indiana is a frequent sourcing region for Acretrader Management (ATM). The Tippecanoe Farm represents our 6th offering in the region. ATM has sourced and currently manages approximately 700 acres in Indiana in addition to two full cycle exited Indiana corn and soybean farmland investments of similar size and soil productivity index that resulted in realized net IRR’s of 16% and 18%, respectively(2). The complete list of ATM exited investments is available here.
(1)Acres (www.acres.com), an affiliate of the Manager, is a geospatial land intelligence platform designed to improve land management and purchasing decisions. Using public and private market data, Acres aggregates and analyzes over 150 million parcels of land to enable users to better understand and maximize the value of their property.
(2) The referenced IRR calculations are actual and each assumes 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 initiated the distributions to members. 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. The information presented above is not intended as investment advice, nor is it a guarantee of any future performance or results. Please note that these alternative investments are considered speculative, involve a high degree of risk, including a complete loss of principal, are illiquid and are not suitable for all investors.
Additional Details
Minimum Subscription Requirement: $1,509,600
Maximum Subscription Amount: $2,516,000
Termination Date: 5/16/2025
5-10 year target hold period is anticipated.
Please see the Financials tab and the Investment and Limited Liability Company Agreement for additional information. The Private Placement Memorandum (PPM) is available in the Documents tab to be viewed or downloaded. The PPM and offering descriptions should be read carefully to fully understand the objectives, risk factors, charges, and expenses of an investment.
Risk Factors
Please refer to the PPM for the full list of risk factors.
Geographic Concentration
The Company’s activities will be limited to acquiring and holding the Property as an investment and are therefore inherently concentrated in a specific geographic location. A stagnant or depressed economy in the area in which the Property is located could adversely affect the value of the Property and the Company’s ability to provide a return or any profit to investors.
Third-party property managers may not be effective
The Manager, on behalf of the Company, may retain third-party property managers who will, under the supervision of the Manager, oversee the day-to-day operations of the Property by the tenants. The success of the Company will, accordingly, depend on the performance of such third-party property managers, and their failure to successfully perform their management duties could adversely impact the Property’s results of operations and could reduce cash available for distributions to Members of the Company.
Crop Risk
Soybeans and corn are planned to be grown on the Property. These commodities are subject to price volatility that could result in selling prices below break-even for the operator. Commodities are also subject to weather conditions including but not limited to drought, flood, and hail.
Farmland Risk
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.
Disclosures
Securities offered by North Capital Private Securities Corporation (“NCPS”), a broker-dealer registered with the SEC and a member of FINRA | SIPC. Their Form CRS can be viewed here.
Alternative asset investing is speculative, involves a high degree of risk, including complete loss of principal, and is not suitable for all investors. Alternative investments are illiquid, not listed on an exchange, and not a short-term investment. Distributions are not guaranteed. Changes in tax law may adversely affect offerings. This offering is a private offering and is not registered under the Securities Act or under any state securities laws or the securities laws of any other jurisdiction. There is no assurance any investment will achieve its objective.
Note that Investors are purchasing shares in a newly formed entity that will purchase this farm but are not purchasing actual acreage of the farm directly. The entity will directly own the farmland. Farmland investments are also subject to additional risks including volatility in commodity prices, water accessibility, weather events or disease that could damage crops and many other operational factors. Economic implications include potential increased production costs and reduced crop yields.
The PPM contains a complete list of all Risk Factors and should be read carefully before investing. 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 Platform, LLC, 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 to us from sources deemed reliable, we cannot guarantee or make representations as to its accuracy or completeness. The AT Parties undertake no obligation now or in the future to update or correct this presentation or any information contained herein.
Please be advised that certain registered representatives of NCPS who are performing sales activities on behalf of NCPS in connection with offerings on the AcreTrader Platform may also be providing services to other entities affiliated with the offerings, including but not limited to the issuer of this or other investment offerings on the AcreTrader Platform. Such services might include, but are not limited to, sourcing real estate, conducting land due diligence, negotiating real estate purchases, preparing marketing and other investor-facing materials, land management-related administrative services and authorizing investments. The registered status of such personnel creates inherent conflicts of interest for a number of reasons, including but not limited to the fact that they may gain financially from your investment, directly through commission payments or indirectly by receiving compensation from the issuer or an affiliate of the issuer. Registered representatives are not presently anticipated to receive commissions in connection with their sales activities for AcreTrader Platform offerings.
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