AcreTrader Latest News: Successfull Farmland Exit In Arkansas

Key Takeaways:

AcreTrader, a platform providing access to farmland investments, successfully exited a Monroe County, Arkansas corn and soybean farm.
The sale in December 2023 resulted in a 9.4% internal rate of return for investors, surpassing the anticipated target.
The farm was initially funded on AcreTrader’s platform in 2019 and sold following an unsolicited offer from the existing tenant.
The sale ensures the continuation of agricultural production on the land and allows the farmer to incorporate the farm into their operations permanently.
The successful exit highlights the company’s effectiveness as a partner for operators seeking to expand their agricultural acreage, the company highlights.

AcreTrader Achieves 9.4% IRR for Investors through Successful Farmland Exit in Arkansas

Details of the Exit

AcreTrader’s recent exit of a corn and soybean row crop farm in Monroe County, Arkansas, marks a significant achievement for the platform and its investors. The property, funded on AcreTrader in 2019, was sold in December 2023 following an unsolicited purchase offer from the existing tenant and farming partner. This sale not only provided a robust 9.4% IRR to investors but also ensured that the arable land would continue to be used for agricultural purposes.

Factors Contributing to Success

The higher-than-expected return for AcreTrader investors is attributed to several factors, including a conservative initial underwrite, an attractive entry price, and favorable market conditions for farmland investments. The transaction was not conducted by AcreTrader Financial, LLC, a registered broker-dealer and member of FINRA|SIPC.

Investment Perspective and Market Resilience

Drew Lipke, Director of Investments at AcreTrader, notes that investment returns in the farmland asset class are bolstered by the limited availability of high-quality farmland and increasing global demand. AcreTrader’s approach combines an informational edge from the Acres platform, a local acquisition network, and the expertise of its underwriting team to offer unique investment opportunities in this sector.

Historical Performance of Farmland Investments

Farmland investments have shown resilience during economic downturns, including the Dotcom Crash, the Great Financial Crisis, and the Covid-19 pandemic. Their historical correlation with inflation, low volatility, and consistent performance have heightened interest in farmland as an alternative investment class.