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On September 28 GreenYield successfully completed the sale of an aggregation of four separate farmland offerings in Illinois. These exits highlight the value investors can potentially receive on the GreenYield platform. The four farms were funded across individual offerings between 2020 and 2022 and delivered above target returns to approximately two hundred investors.

While GreenYield has provided access to farmland investments across more than twenty states and multiple countries, long time investors on the platform often notice consistent opportunities in several established growing regions. These include the Corn Belt, the Mississippi Delta, the Southeastern Coastal Plains, the Red River Valley, irrigated valleys in the Pacific Northwest, and the Central Valley of California.

Within these broader regions we have identified specific subregions where offerings appear more frequently. The Corn Belt is a strong example. Although commonly associated with corn and soybeans, it is actually a remarkably diverse agricultural region with unique characteristics from area to area.

Advantages of an Aggregated Farmland Portfolio

There are several advantages to building an aggregated portfolio of high quality farmland within focused subregions.

The first advantage is sourcing. GreenYield works directly with farmers and agricultural professionals who live and operate within these regions. Over time we have established strong sourcing relationships that consistently provide access to high quality opportunities, many of them off market. This gives us deep regional knowledge that helps uncover market inefficiencies which may create attractive investment opportunities.

A second major advantage is the ability to consolidate multiple farms into a larger portfolio at exit. A combined portfolio often appeals to larger institutional or investment buyers who may be willing to pay a premium for the opportunity to acquire a collection of farms within a single region.

Illinois: A Case Study

Illinois is a region where GreenYield has applied this strategy effectively. GreenYield manages more than four thousand acres across the northern half of the state. Nearly half of this land is located in northeast Illinois, east of the Illinois River. While soil scores across the region may appear similar, soil composition varies significantly because the area spans multiple geological zones.

Zooming further in, more than eight hundred of these acres are within the Kankakee River Basin. This subregion contains diverse soil classes that we understand at a granular level. Years of working closely with our farmers and farm managers have helped us identify where these soils offer strong production potential when combined with the right drainage and infrastructure.

Through access to extensive comparable sales data via Acres, we carry out detailed analysis and financial modeling for each opportunity. This helps us determine where capital improvement budgets should be deployed to enhance productivity and simplify operations.

The results have been notable. Investors often share in production gains through flex leases. In 2022 we observed yields across the Kankakee River Basin outperforming underwriting expectations.

This deep regional understanding also allows us to market a much larger farmland portfolio than a single property would allow. This recently led to five independent investments going under contract with a single buyer.

Investing with Aggregation in Mind

Investors may benefit from incorporating some level of aggregation into their farmland portfolios. The Illinois results illustrate the advantages of this approach. Whether within the larger Corn Belt or specific subregions such as the Kankakee River Basin, aggregation strengthens sourcing relationships, enhances local insights, and increases potential access to off market opportunities. These advantages can translate into stronger investment outcomes.

Note that investors are purchasing shares in an entity that will purchase farmland. Investors are not purchasing literal acreage directly.

Important Information

The information above is for educational and general informational purposes only. Any performance mentioned reflects historical results and does not guarantee future outcomes. All investing involves risks including the complete loss of principal. Diversification does not guarantee profit or protect against loss in a declining market. Each investor should review their investment objectives, risk tolerance, liquidity needs, and tax considerations before investing.

Farmland investments carry additional risks including weather events, crop disease, commodity price fluctuations, and other operational challenges. Please refer to the Private Placement Memorandum for detailed information on risks.

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