AcreTrader: Baker City Spuds Organic Farm

Real estate investment platform AcreTrader launched an equity investment offering for an established organic farm in Union County, Oregon.

Baker City Spuds Organic Farm is a 922-acre, row-crop farm in the Grande Ronde Valley, an established agricultural region in Oregon. With a low correlation to adverse market conditions and other asset classes, farmland represents an inflation-proof investment that has shown consistent growth since the National Council of Real Estate Investment Fiduciaries (NCREIF) started tracking data in 1991.

Returns for investors come from two primary sources — the passive income generated from crop sales and the appreciation in the value of the farmland. Crops produced on the farm — potatoes, vegetables, alfalfa and corn — will be aided by the farm’s Coughanour and Hutchinson silt loam soils, which are conducive to growing a variety of crops. Oregon’s Grande Ronde Valley sits at 3,300 feet and has a cool climate that’s ideal for the crops cultivated on the farm.

Baker City Spuds Organic Farm has extensive on-site infrastructure, including an office, potato storage and processing facility, cold storage facility, grain silos, seed cleaning plant and an equipment shop. Additional streams of passive income will be generated through renting facilities to a tenant at a rate of $72,000 a year. The farm will be rented to the existing operator at a base rate of $375 per acre with a built-in flex component that allows for bonus rent payments to occur when gross revenue exceeds $1 million. A combination of the two rental incomes is projected to amount to $376,819 per year.

• Minimum investment: $15,000
• Target internal rate of return (IRR): 10.5%
• Target investment term: 10 years

Since its inception, AcreTrader has been one of the premier farmland investing platforms in the market. The platform enables average investors to buy into a lucrative market with historically strong and stable returns. 

The property will be managed by mAgma LLC, an affiliate of private real estate investment firm Peoples Company, which has extensive experience in the farmland asset class. Demonstrating its commitment to the success of the venture, mAgma will be coinvesting in the Oregon farm.

View details on AcreTrader’s offerings

Photo courtesy of AcreTrader