A New Financing Model for Farmers Who Want to Expand
Many people know AcreTrader as a platform that makes it easy for investors to invest in farmland. But they have also launched a new model for farmers that want to expand their acreage, called a farm sponsor model. AcreTrader director of investments Drew Lipke says this introduces a new financing model for enterprising farmers.
Lipke… “We try to identify that operator who really wants to build their business, increase the land that they farm under acreage. And they can use our platform to raise passive equity capital to purchase land and raise all the needed working capital for if it's a development or if it's already a producing orchard. And the key differentiator is that we do not serve as the general partner of that entity as other institutional investors do. That farm operator, that grower, serves as a general partner and they have full control and full autonomy of the farm. And they simply use our platform to bring in limited partners to invest in the operation that they want to build.”
Lipke said not only can AcreTrader bring willing investors, but they also help to facilitate the process.
Lipke… “The biggest value add we bring is the 60,000 accredited investors who want to invest in farmland. But outside of that, our team on the farm team will help in terms of creating the structure for the entity that's going to acquire that property, all the financial modeling, and then help them escort the entire offering through the platform to ensure that it's successful.”
There’s a learning center with more details on the AcreTrader website.