Miami & Wabash CountiesIN

Wabash Valley Farm

STATUS

Open

Miami & Wabash CountiesIN

Wabash Valley Farm

STATUS

Open

Description

The Wabash Valley Farm is a 152.4 acre pumpkin, gourd, soybean, and corn farm located in Miami and Wabash Counties, Indiana. This investment opportunity consists of a farm with robust optionality for specialty and grain crops in a core region of the Corn Belt. This Property was brought to AcreTrader through our local agricultural network as a sale-leaseback. A sale-leaseback is a term used to describe a real estate transaction wherein real estate is sold and the buyer then leases the real estate back to the seller. Sale-leasebacks are commonly used in AcreTrader’s approach to asset sourcing, because it allows operators to access capital tied up in land ownership while maintaining the acreage under management.

Regional Significance

Miami and Wabash County, Indiana are located in the heart of the Corn Belt. This area is often defined as the portion of the Midwest stretching from western Ohio to eastern Nebraska that is dominated by the production of corn and soybeans. Indiana, in addition to being a prominent corn and soybean producer, ranked in the top four states nationally for pumpkin production each of the past five years, while ranking #1 in value of production in both 2021 and 2022 according to the USDA National Agricultural Statistics Service’s 2020 - 2022 Vegetable Annual Survey. Unlike neighboring Illinois, the vast majority of pumpkins in Indiana are sold to the fresh market rather than for processing uses such as pie filling.

Why We Chose This Investment

Crop Optionality

In the past four years, the Wabash Valley Farm has grown pumpkins, soybeans, and corn with the current tenant also growing gourds and vegetables as part of their operation. The pumpkins grown on the Property are sold to the fresh market for uses such as Jack-O-Lanterns and home decor.

Leaseback with Experienced Operator

The Property will be leased to the current owner/operator who has operated the farm for the past four years. The lease is expected to be a five-year term beginning in 2025 at a base rate of $350 per tillable acre, with an annual escalator anticipated to begin in 2026.

AcreTrader’s Regional Presence

Indiana is a common sourcing region for AcreTrader Management, with the Wabash Valley Farm representing the 5th offering in the state and third in Miami and Wabash Counties offered for funding on the AcreTrader Platform.

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.

(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.

Additional Details

Maximum Subscription Requirement: $1,296,000
Minimum Subscription Amount: $777,600
Termination Date: 2/20/2025
5-10 year target hold period is anticipated

Please see the Financials tab and the Investment and LLC 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
Corn, pumpkins and soybeans 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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Rob Moore
"AcreTrader is focused on being a transparent and helpful resource as you research whether farmland is an appropriate asset class for your portfolio. I'm happy to hop on a call to answer questions related to farmland as an asset class or our platform as a tool to access it."
Rob Moore
– Rob Moore
VP of AcreTrader