Waterbury Farm
STATUS
Waterbury Farm
STATUS
Corn
Soybeans
Description
The Waterbury Farm is a 160 acre corn and soybean farm located in Redwood County, Minnesota. This investment opportunity consists of a farm with a strong production history and crop optionality in southern Minnesota, a tenant-dense farmland market that is one of North America’s most productive agricultural regions.
Regional Significance
With over 535,000 acres of cropland in production, Redwood County sits in the heart of southern Minnesota. Southern Minnesota is known for production of corn and soybeans primarily with over 91% of cropland acres in Redwood County being dedicated to corn and soybean production. Redwood County is also a major livestock producing region and ranks in the top 10 counties in the state for both cattle and pork 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.
Leaseback with Family Farming Operation
We are working with a family farm who has farmed the Property for over 20 years, and is selling the farm to free up capital for additional land purchases while maintaining operational control. Given the tenant’s long history operating on the Property, they bring an expansive understanding of the farm as well as a commitment to sustaining the long-term value of the asset.
Flex Lease with Experienced Operator
The Property is leased to a local operator for a three-year term beginning in 2025 at a base rate of $365 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
Southern Minnesota is a frequent sourcing region for Acretrader Management. The Waterbury Farm represents our 12th offering in the region. Acretrader Management has sourced and currently manages approximately 2,310 acres in southern Minnesota.
(1) Acres, 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
Minimum Subscription Requirement: $1,014,000
Maximum Subscription Amount: $1,690,000
Termination Date: 8/09/2025
5-10 year target hold period is anticipated.
Please see the Financials tab and the Investment and Limited Liability Partnership 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.
*Please note that the form of entity is an LLP rather than an LLC
*Please note that due to Minnesota’s farming laws, you may only invest in this farm as an individual (including a select few SDIRAs and other individual retirement accounts) or a revocable trust. Entities such as LLCs are not allowed to invest in this offering.
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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