Tabor Farm Offering On AcreTrader

*Update* The Tabor Farm offering has been fully subscribed. Check out the Goose Creek Farm offering currently available on AcreTrader.

Real estate crowdfunding platform AcreTrader is launching a new offering for a 160-acre farm in Polk County, Minnesota.

Tabor Farm is located in the heart of a 500 million-acre cropland region in the Red River Valley. What was once an ancient lake bed is now fertile farming ground with enriched soil conducive to optimal crop diversity and production. The farm will produce corn, soybeans and a premium row crop — sugarbeets. 

“Because beets are so fast to grow and the seed is fairly inexpensive, beets can be a great cash crop,” according to Hobby Farms magazine.

Tabor Farm marks the platform’s third investment in the Polk County region. The reason for investing in the Red River Valley is simple — the land allows for the cultivation of the most profitable row crops in the market.

“The Red River Valley region is the largest sugarbeet growing region in the country,” according to a U.S. Department of Agriculture report analyzing sugarbeet production across the U.S. “Area planted in this region has been growing through the 1990s and totaled 748,000 acres for 2000, or about 48% of total sugarbeet acreage. Over the last decade, Minnesota's sugarbeet area increased by 121,000 acres.” 

Improvement projects will soon be underway to improve the farm’s viability. Sections of trees on the farm will be removed to increase the tillage acreage. Implementing a soil improvement program will aid crop quality and production. The drainage system will be cleaned up to improve the farm’s water drainage. These three improvements are believed to aid in crop production and maximize the profitability of the land while also commanding higher rental premiums over the long term. 

• Minimum investment: $10,400
• Target internal rate of return (IRR): 8%
• Target cash yield: 3.4% gross, 2.1% net
• Target investment term: five to 10 years

View details on AcreTrader’s offerings

Since its inception, AcreTrader has been one of the premier 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.

Photo courtesy of AcreTrader