Real estate investment platform AcreTrader announced the last call for prospective agriculture investors as the funding window is near closing for investment in a row crop farm in the agricultural region of Ogle County, Illinois.
Oak Ridge, a 252-acre row crop farm nestled in an Illinois region characterized by rolling topography between the Rock River and Pine Creek, is focused on cultivating corn and soybean crops to generate cash flow and deliver returns to its investors. The property primarily comprises 243 tillable acres, predominantly featuring Fayetteville loams. These soils boast an impressive average productivity index score of 122, significantly above the norm, underscoring the farm's exceptional viability.
Recent years have witnessed significant property improvements at Oak Ridge Farm, including tree removal, drainage tile installation, and general cleanup. These enhancements are poised to elevate operational efficiency. Notably, a $25,000 improvement project is embedded in the offering, aimed at further enhancing the farm's readiness for optimized production, bolstering its long-term value, and enhancing its appeal to prospective investors.
Oak Ridge Farm's unique terrain has necessitated the adoption of reduced and no-tilling practices due to its rolling topography. These practices simultaneously boost soil fertility while mitigating erosion and compaction risks, contributing to the farm's successful cultivation processes.
The farm operates under a lease agreement with an experienced regional operator. This lease incorporates a flexible component, offering investors revenue based on the baseline rental rate. Additionally, it presents the potential for rental premiums in scenarios where yields and commodity prices exceed expectations. This forward-thinking approach secures stable income while maximizing potential returns for investors.
- Minimum investment: $20,000
- Target internal rate of return (IRR): 7.6%
- Target investment term: five to 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 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.
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