Real estate investment platform AcreTrader launched an offering for a row crop farm in the agricultural region of Ogle County, Illinois.
Oak Ridge is a 252-acre row crop farm growing corn and soybean to generate cash flow and returns for investors. The property’s 243 tillable acres consist primarily of Fayetteville loams holding an average productivity index score of 122, a figure well above average, indicating the viability of the farmland.
In recent years, Oak Ridge Farm has seen considerable improvements to the property including tree removal, drainage tile installation, and general cleanup which is expected to increase the efficiency and operability. Built into the offering is a $25,000 improvement project which will go towards further readying the farm for optimized production and enhancing long-term value and appeal.
Oak Ridge is in a region of Illinois between the Rock River and Pine Creek that is characterized by rolling topography. Because of the slopes in the region, Oak Ridge has operated with reduced and no-tilling practices, which increases soil fertility while reducing erosion and compaction, processes that aid the farm in the cultivation process.
A lease agreement is in place with an experienced operator in the region. The lease agreement comes with a built-in flex component that provides investors with revenue generated from the baseline rental rate while providing the opportunity for rental premiums in cases of higher-than-anticipated yields and commodity prices.
- Minimum investment: $20,000
- Target internal rate of return (IRR): 7.6%
- Target investment term: five to 10 years
AcreTrader will host a live webinar for the investment offering at 12 p.m. CT on June 21. The investment window will open at this time.
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 returns.
Investment in farmland often acts as a hedge against inflation. Aside from the appreciation of the land itself, passive income is generated from the sale of cultivated crops. The farmland investment index has seen a positive return since its inception in 1990.
View details on AcreTrader’s offerings
Photo courtesy of AcreTrader
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