Land investment company AcreTrader of Fayetteville announced that it exceeded its target return on the recent sale of farmland in Quitman County, Mississippi.
Funded on the AcreTrader platform in June 2020 and sold in June 2023, the investment resulted in a net internal rate of return of about 15.8%, exceeding the initial target of 8.5%.
The 236-acre property in the Delta was improved prior to its acquisition by AcreTrader, the company said in a news release. Precision leveling served to transition the ground from primarily soybean to primarily rice production. Properties suitable for growing rice, a higher-value crop, can command higher lease rates in the region.
Additionally, two duck blinds were purchased by AcreTrader Management LLC on behalf of investors for waterfowl hunting, which yielded additional income.
The exit follows five previous investments in the past year with higher-than-expected returns, including an alfalfa and carrot farm in Imperial County, California, that returned 15.5% in fewer than 17 months and a rice farm in Tunica County, Mississippi, that returned 13.7% in 26 months.
“It is encouraging to witness this kind of performance amid today’s uncertainty,” Carter Malloy, CEO of AcreTrader, said in the release. “Our hope is that farmland can continue to serve investors as the portfolio diversifier it’s historically been. It’s a powerful resource in more ways than one, and we work hard to steward land responsibly with our farming partners, as well as our investors’ interests in it.”
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