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Direct Organic Farmland Investing

Welcome to new opportunities in organic farmland investing

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OVERVIEW

  • SEC 501 rules: Un accredited investors are limited to 35. Accredited investors are unlimited.
  • Risk management: Crops and key personnel are insured.
  • Focus: Long-term Investments are targeted at farms in Iowa and other Midwestern grain belt states.
  • Crops: Large-scale organic row crops such as organic corn, soybeans, wheat, and other small grains.
  • Certification: All farms are certified organic under the USDA organic label.
  • Transition: Some farms may already be certified and others may require transition.

NEXT STEP

Step One: Register below to receive the Partnership Questionnaire that will clarify your investment goals. We will contact you to follow up. From there your name will go on the list of interested investors in Iowa Organic Partners, LLC. 

*denotes required fields

Step Two: When the tentative interest level reaches $800,000 we  begin our due diligence to find complimentary farm opportunities that meet your goals.

Step Three: A packet will be sent to you on each farm that includes:

  1. Farm description
  2. Proforma
  3. PPM with Subscription Agreement
  4. Partnership Agreement
  5. Farm Purchase Agreement
  6. Farm Operator Agreement

At that time, you decide whether your tentative interest turns into a commitment or is withdrawn. The investment window will remain open for a specified period for additional partners to join and farms purchased. Prior to the first farm purchase all Subscription Agreements are called and the purchase is completed. 

Recent Farms Funded

Fairfield One, LLC

$1,300,000 ~ $1/Membership Unit ~ Closed at $1,250,000
Purchase Price $8,300/acre plus reserve
Fairfield One, LLC is an Iowa partnership registered under SEC Rule 504.
Investment is available to both accredited and non-accredited investors.

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FUNDED

Fairfield One is located at 2037 140th Street, Fairfield, IA 52556. This is a direct sale. This farm has been certified organic for 26 years. The farm is 150 acres comprised of 125 tillable acres for organic row crops. 25 acres are in pasture and homestead buildings. The farm’s average CSR2 rating (corn suitability rating as determined by Iowa State University’s Extension Service) is 79.9. This rating system is based on the soil profile, slope characteristics and regional weather conditions that are suitable for growing row crops. It is an index ranging from 0 to 100 with CSR2 values of 100 being the most productive.

Wedemeier Farm Partners LLC

$1,261,440 ~ $1/Membership Unit ~ $35,000 Minimum

Wedemeier Farm Partners, LLC is an Iowa Limited Liability Company  registered under SEC Rule 501(a) Investment is available to both accredited and non-accredited investors.

1 Parcel ~ Certified Organic Farmland
155 acres (146 tillable)

This is a direct sale contract

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CLOSED

Grassway Farm is a family run, 3rd generation dairy and crop farm. Gary (dad) and Scott (son) Wedemeier own and manage the farm together with a lot of support from Scott’s wife Catherine and their four children.

The farm is located at 18663 110th Street, Maynard IA 50655

The original farm started over 50 years ago as 172 acre homestead and has since grown to over 700 acres today. In 2015 they started the transition from conventional dairy and crop production to organic. In October 2017 the dairy cows and land were certified organic. This diversified farm includes row crops, 180 dairy cows, a small group of pasture raised hogs, and steers that are direct marketed through the Grassway Farm website.

In 2014 Scott and his father agreed that running a conventional dairy farm was not profitable enough for Scott to buy his father out so his father could retire unless they converted to an organic dairy and row crop farm. And so, their journey to organic began.

Their organic transition included a 160 acre field 5 miles from the dairy. These are the acres Wedemeier Farm Partners are purchasing. The sale will finance the Wedemeier’s purchase of an additional 160 acres immediately adjacent their dairy operations. The partnership will engage with Scott and Gary to continue to farm this ground on a crop share basis.

The average *CSR2 for this 155 acre parcel averages 88.3 with a mixture of productive Kenton loam, Clyde-Floyd Complex soils with between 2% & 5% slopes.

For more information on the investment returns, timing and partnership structure, please continue to the “Request more information” tab below.

About the Organic Market

Net Operating Income (NOI)

As a certified organic farm focused on grains, the estimated average NOI over ten years is forecast to be between 3% and 5%.

Return On Investment (ROI)

It is estimated that the farmland will appreciate at approximately 7%/year (see Iowa farmland history below). When combined with NOI, a ten-year ROI is forecast to be between 10% and 12%.

Appreciation

Iowa farmland has a history of appreciation that has proven to be the gold standard in farmland value. Iowa farmland is a hard asset that is uncorrelated to the stock market and has had an average annual growth in appreciation of over 11%/year and has out-performed the S&P 500 (1982 – 2017). 

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Low Volatility

As a real asset that increases in value, organic farmland is an inflation hedge. It produces healthy food necessary in any economy and the grain crops can be insured through federally backed crop insurance up to 85% of yield loss due to weather related issues. As a member of this partnership, your investment is secured by your ownership of the underlying asset, farmland. Farmland is considered to have an unlimited lifespan.  Due to the scarcity of arable farmland, its value tends to increase over time, as opposed to the decline in value of other types of fixed assets. 

High Demand

Consumer demand is driving the growth in the organic food market. In a recent Nielson global food survey, 40% of Americans were concerned about GMO food sources and the impact of herbicides and pesticides on their health. Organic farm certification prohibits the use of these chemicals.

Organic food is the fastest growing food category in the grocery store isle. Demand for organic food has grown by double digits annually from $1B in 1990 to over $50B in 2018. Organic food in mainstream.

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With only 2% of U.S. farmland in organic production, organic food processors struggle to meet demand which in turn, drives high organic grain prices independent of conventional grain futures at the Chicago Board of Trade.

Organic Markets Served

The demand for organic grain is in high demand. Human edible organic grains reach your table in a multitude of products.

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Organic grains are also grown for the organic animal feed industry.

Investment Criteria

Iowa Organic Partners, LLC is designed to comply with all state-by-state farmland ownership regulations. Before purchasing a farm, careful analysis is undertaken to insure the following:

  • There is a qualified organic farm operator in place
  • The farmland meets high CSR2 ratings
  • The geography and precipitation patterns support row crops
  • Access to organic inputs is assured
  • Access to markets is assured
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This map indicates the current areas where farmland purchases are focused and meet the above criteria.

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This map represents the regional organic buyers, suppliers and global distribution facilities.

Risk

As a pass through entity, an investment in Iowa Organic Partners, LLC  is forecasted to provide investors cash distributions, safety of principal, and appreciation. Because there are no assurances this investment will successfully deliver the estimated ROI, investors should be able to bear the risk of a loss of their capital investment.

Key Team Members

Harn Soper – Mr. Soper is SFM’s farm acquisition lead and an investor. He developed his expertise in organic farming and farm conversions while managing his family’s 800 acre farms in NW Iowa. He is currently a board member of Soper Farms, Inc. He is founder of Sustainable Farm Partners and Sustainable Farm Managers, on the board of the Organic Farming Research Foundation, is a member of Practical Farmers of Iowa and a member and consultant to Sustainable Iowa Land Trust.

Mark Rokala – Advisor: Mr. Rokala is SFM’s USDA/Government affairs lead working in Washington DC with his own company, Rokala Public Affairs. He farms 200 organic acres of corn, soybeans and small grains in Minnesota.

Craig Brownlee – Advisor: Mr. Brownlee’s firm, Brownlee Management is a third generation family farm management firm in NW Iowa with over 22,000 acres  under management. He farms over 2,000 acres of his family farm that includes over 800 organic acres.

Jeff Moyer – Advisor: Mr. Moyer is the Executive Director of the Rodale Institute and an organic farmer in Kutztown Pennsylvania. He has been conducting organic field trials for 20 years and is founder for the Organic Farmers Association. As an organic expert, Mr. Moyer travels internationally speaking on organic agriculture.

David C. Johnson – Advisor: Mr. Johnson is a molecular soil biologist conducting research at the Institute for Sustainable Agricultural Research at New Mexico State University, is an Adjunct Professor in the Regenerative Agricultural Initiative at California State University, Chico and a member of the NASA Mars Rover soil research team. 

Farm Operating Network 

SFM’s on-farm operating network includes teams located in Fairfield Iowa, West Bend Iowa, Penora Iowa, Hartley Iowa, Masservey Iowa and Sullivan Illinois. Collectively, this team has over 80 years of organic farming experience.

 

Professional Associations – Leadership, Membership and Sponsorship

Organic Farming Research Foundation (www.OFRF.org) 

Practical Farmers of Iowa (www.PracticalFarmers.org)

Vida Verde Nature Education (www.VVEducation.org)

Rodale Institute (www.RodaleInstitute.org)

The Nature Conservancy (www.nature.org)

The Non-GMO Working Group – Green America (www.greenamerica.org/our-mission)

Sustainable Iowa Land Trust (SILT) www.SILT.org

Organic Farmers Association (OFA) www.organicfarmersassociation.org