Willow Creek Farm Opens Up New Cropland Investment Through Crowdfunding

FarmTogether’s new crowdfunding offering (view other real estate crowdfunding offerings) Willow Creek Farm provides a unique opportunity to invest in top-tier row croplands with an attractive target return.

Willow Creek Farm is located in eastern Illinois and spreads over 118.8 contiguous acres, 116.9 of which are plantable. This deal was acquired at about an 11% discount to market comparables. The deal sponsor seeks to raise $1.2 million and offers a 6.3% target return.

Investment highlights: Willow Creek Farm is an estate with excellent soil quality in a prime location surrounded by other farms. On the 'CYR' scale (Corn Yield Rating), a popular soil rating system used across Illinois agriculture, the soils on this property are rated 165 out of a possible 190. 

The investment offers 2 different sources of return: lease payments and expected land price appreciation. As markets adjust to a new trade equilibrium and demand for U.S. soybeans develops again, the supply and use are expected to grow at a rate of 7% per year throughout the baseline period. This transaction will not use any debt for the purchase or further land development. 

• Minimum investment: $15,000
• Target IRR: 6.3%
• Target annual cash yield: 2.1%
• Target equity multiple: 1.7x
• Target investment term: 9 years

Learn more about FarmTogether and the platform's current offering

Deal sponsor: Farmland Opportunity is among the most prominent row crop investors in the United States, with a track record that far outweighs the projected returns on this offer. The on-site farmer is a long-term tenant of the sponsor and has farmed several surrounding properties for many years.

Farmland Opportunity works with an exclusive group of clients and accepts few investors. The sponsor's assets under administration today total more than $500 million, with 90,000 acres spread throughout 10 states.

Want to be the first to know about new investment opportunities? While real estate crowdfunding is giving individual investors access to private deals that have historically been out of reach, many of the most lucrative deals are fully funded before the average investor ever has a chance to get involved.

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Photo by Stefano Marinelli on Unsplash