Private equity investment offering for 620-acre rice and soybean farm in Arkansas

The agricultural investment platform Acre Trader is launching a new offering this week for a 620-acre soybean and rice farm in Crittenden County, Arkansas.

Located in the heart of the fertile Mississippi Delta, 20 miles outside of Memphis, Jenette Farm’s offering is a rare opportunity for investors to purchase a large acreage in a prime agricultural area known for its diversity of crops. . Tennessee is the nation’s top rice-producing state with land consisting of silty clay, suitable for healthy soybean and rice production.

In addition to prime farmland appreciation potential, the investment opportunity includes the most commercially important oilseed – soybeans. Due to their high fat and protein content, soybeans are considered the most valuable oilseed. With two leased grain silos on the property, the farm expects to receive $15,000 in revenue per year from these silos alone.

Due to the property’s proximity to the delta and the ability to tap into the abundant alluvial aquifer of the Mississippi Valley, the farm is fully irrigated. Of the money raised, $206,000 will go towards “earthworks to re-level fields and improve roads, installation of drainage pipes, cleaning of ditches and other miscellaneous projects” to improve agricultural efficiency, according to AcreTrader.

  • Minimum investment: $16,175
  • Internal rate of return (IRR) target: 8.3%
  • Target investment period: holding period of 5 to 10 years
  • Available to: Accredited investors only

Since its inception in 2017, AcreTrader has been one of the leading crowdfunding farmland investment platforms in the market. Having recognized both the historically high returns and low volatility of farmland combined with often high financial barriers, AcreTrader has enabled average investors to invest in this lucrative market.

Investment in farmland is often used 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 to investors looking to diversify their portfolios.

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Photo: Courtesy of AcreTrader

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