New Farmland Equity Investment Offering Available This Week

A private market agricultural investment will open to prospective investors on Dec. 20.

The Bishop Hill Farm is a 138-acre corn and soybean farm in Henry County, Illinois. The property sits in the heart of the country's corn belt, a region that extends from western Ohio to eastern Nebraska and has some of the highest corn and soybean production in the world. 

Henry County is a dense agricultural region that ranked 10th nationally in 2022 corn production, according to CropProphet. Among the investment's advantages is that Bishop Hill Farm has an above-average soil composition relative to the rest of the county. The average score on the Soil Productivity Index for Henry County is 118 while the score for Bishop Hill is 130.1, indicating the the high yield potential of the property. 

Of the 1.5 million being raised for the offering, $40,000 will be allocated to a property improvement project. The capital expenditure program will be aimed at installing drainage tiles and reshaping on-site waterways. The project is expected to improve the farm's productivity and overall value for the eventual sale and investment exit. 

The investment offering comes with a few built-in advantages that are expected to enhance yield potential and cash flow. According to Acres data, Bishop Hill Farm is being acquired at a price that is below the average market value of properties in Henry County. The lease agreement has a built-in flex component that allows for additional rental payments should the property reach its average crop productivity levels achieved over the previous eight years. 

• Minimum investment: $15,000
• Target internal rate of return (IRR): 8.5%
• Target gross cash yield: 3.7%
• Target net cash yield: 2.3%
• Target investment term: three to five years

Bishop Hill Farm will be available to investors on the AcreTrader platform beginning at 1 p.m. CT on Dec. 20. 

View more private market real estate investments on Benzinga’s Real Estate Offerings Screener.

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Image courtesy of AcreTrader