Alternative Assets: AcreTrader, a Farmland Investment Platform, Reports Exit with IRR of 9.4%

The world of alternative investments continues to expand. While early-stage firms and real estate are common, there are a growing number of asset classes that are being turned into securities and being made available to individual investors.

AcreTrader is a platform that is a broker-dealer that enables Accredited Investors to participate in “farmland investing.”

In a recent release, Drew Lipke, Director of Investments at AcreTrader, claimed that farmland as an asset class is supported by the diminishing availability of high-quality farmland.

“By integrating the informational edge provided by the Acres platform with our local acquisition network and the experience and rigorous diligence of our underwriting team, we believe we can provide investors with novel access to this asset class,” said Lipke.

This week, AcreTrader reported an exit for an investment in corn and soybean farmland for property in Monroe County, Arkansas. The platform reports that investors earned an internal rate of return (IRR) of 9.4%. The security was made available in 2019 and was sold last month (December 2023).

AcreTrader said they received an unsolicited offer to purchase the property from the existing tenant and farmer.

Of course, like any investment, there is risk to the performance of the asset and farmland can be impacted by commodity pricing, weather and more. At the same time, it can provide non-correlated returns when other markets are not doing well.

AcreTrader currently has a single active offering for farmland in Washington state. The platform also displays several other exited investments with several reporting IRRs of over 15%.

Most investment opportunities on the marketplace require a minimum initial investment of between $15,000 – $40,000.

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