Private Equity Offering For Farmland Investment Provides Access To High-Demand Asset Class

The farmland investment platform AcreTrader is launching a new offering today for a 995-acre corn and mixed vegetable farm in Newaygo and Wexford Counties, Michigan.

Fremont Lake Farm is in a strong farming region where a tenant base of nearly 2,000 registered producers supports a strong leasing market for irrigated ground.

There is a 5-year lease in place with the existing tenant, who also operates a local hog farm in the area. This deal includes a manure agreement allowing for the application of fertilizer from that farm, which provides a free source of natural fertilizer that supports long-term soil health and helps to ease the strain of high fertilizer prices.

The farm’s primary crops are corn, potatoes, and a variety of mixed vegetables. The operator has contracted the potato crop to Bob Evans Restaurants, and the vegetables are contracted to Gerber Products for baby food.

The investment is also supported with supplemental income from a cellular tower lease and a residential lease, with the potential for a future sale of the residential asset.

Investment Terms: Cash distributions on the investment are expected to occur annually, beginning in December 2022. The distribution frequency may increase during future periods.

• Minimum investment: $23,555
• Target net annual return: 8.7%
• Target net cash yield: 2.8%
• Target hold period: 5-10 years

Details of this offering and other private equity real estate investments are available on Benzinga Alternative Investments.