Private Equity Investment Offering For 620-Acre Rice And Soybean Farm In Arkansas

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The farmland investment platform AcreTrader is launching a new offering this week for a 620-acre soybean and rice farm in Crittenden County, Arkansas.

Located in the heart of the fertile Mississippi River Delta 20 miles outside of Memphis, the Jenette Farm offering is a rare opportunity for investors to buy into a large acreage in a prime farming area known for its crop diversity. Arkansas is the top rice-producing state in the country with land consisting of silty clay, which is conducive to healthy soybean and rice production.

In addition to the appreciation potential of prime farmland, the investment opportunity features the most commercially significant oil seed — soybeans. Because of their high fat and protein content, soybeans are considered to be the most valuable oilseed. With two leased grain bins on the property, the farm expects to receive $15,000 in income annually from these bins alone.

Because of the property’s proximity to the Delta and the ability to draw from the abundant Mississippi River valley alluvial aquifer, the farm is fully irrigated. Of the money raised, $206,000 will go toward “dirt work to regrade fields and improve roads, drainage pipe installation, cleaning out ditches and other miscellaneous projects” to improve farming efficiency, according to AcreTrader.

  • Minimum investment: $16,175
  • Target internal rate of return (IRR): 8.3%
  • Target investment term: 5- to 10-year holding period
  • Available to: Accredited investors only

Since its inception in 2017, AcreTrader has been one of the premier crowdfunding farmland investing platforms in the market. After recognizing both the historically strong returns and low volatility of farmland combined with often high financial barriers, AcreTrader has made it possible for average investors to buy into this lucrative market. 

Investment in farmland often acts as a hedge against inflation. Since 1990, the first year of the farmland investment index, there has been a positive return every year, making this asset class increasingly attractive for investors looking to diversify their portfolios.

Interested in farmland as an investment? Join the discussion in Benzinga's Alternative Investments Community

Photo: Courtesy of AcreTrader

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