Farmland Investment Offering For 772-Acre Rice And Soybean Farm In Arkansas

The real estate crowdfunding platform AcreTrader launched a new offering for a 772-acre rice and soybean farm in Crittenden County, Arkansas.

Located in the heart of the Mississippi River Delta 20 miles from Memphis, the Bucklake Farm is in a farming region known for its abundant water supply. The row crops generated on the farm include rice and soybeans. Because of their high fat and protein content, soybeans are considered to be the most valuable oilseed. Investors can receive fully passive income from the crop sales generated from these two row crops.

Of the budget, $345,000 is allocated to ground leveling and dirt work, creating more drainage and easier farm machinery operation. The work will increase irrigated land to 386 acres and add one or two wells. The farm also offers potential income outside of crop sales and appreciating equity.

A small portion of the land is enrolled in the U.S. Department of Agriculture Conservation Reserve Program. Designed to protect wildlife, this program provides $29,070 annually. Cropland rental collected amounts to $100,695 a year. A noncontiguous, 160-acre plot 10 miles to the east of the farm may be sold off separately because of its proximity to the highway and Memphis, Tennessee. 

Directly across the street from Bucklake is the 620-acre Jeannette Farm, another property owned by AcreTrader. According to AcreTrader, “There may be future opportunity to combine them at exit for a large contiguous acreage, which could command considerable interest from a variety of buyers, including farmers and institutions.”

• Minimum investment: $15,120
• Target internal rate of return (IRR): 8.1%
• Target cash yield: 3.3% gross
• Target investment term: five to 10 years

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.

Photo: Courtesy of AcreTrader