Offering Details

SPV Lindmark Farm, LLLP

Lindmark Farm

Boone County, Iowa

CROPS / Organic Soybeans + Corn

MINIMUM INVESTMENT / $5,000

LEVERAGED TARGET IRR / 6.95%

SYNDICATED PRICE/ACRE / $9,822

OFFERING SIZE / $446,354

TARGET HOLD PERIOD / 7 Years

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Asset Summary

THE FARM IS ELIGIBLE TO GROW organically certified CORN, SOYBEANS, OATS, and EDIBLE BEANS.

Seeking to bring a premium, organic-ready Midwestern farm to the public, SPV Lindmark Farm, LLLP (“SPV Lindmark Farm” or the ‘’Farm”) took advantage of the opportunity to acquire a 74.39-acre property located in Central Iowa just outside the town of Ogden. The asset includes 73.95 acres of land suitable for transition to organic tillable farmland. The Farm is immediately eligible to receive USDA organic certification after spending the last 14 years enrolled in the Conservation Reserve Program (CRP) through the Farm Service Agency. During its enrollment period, there was no application of synthetic chemicals or fertilizers on the Farm. The Farm will receive USDA organic certification in the spring of 2021 after application approval from International Certification Services.

Located in Boone County, Iowa, the Farm is eligible to grow organically certified soybeans, corn, oats, as well as edible beans. SPV Lindmark Farm will plant and grow crops primarily for the production of organic feed grain products. The Farm will be professionally managed by Peoples Company, a nationally recognized firm that offers land management, appraisal, brokerage, and investment services in 26 states across the country.

Based in the heart of the Corn Belt, the Farm is highly sought after by farm operators. This location is associated with strong agricultural production and therefore experiences consistent tenant occupancy.

For the Farm to reach its maximum organic potential and to transition the ground to tillable farmland, SPV Lindmark Farm will undergo a ground preparation process that involves controlled burning, clearing trees and brush, as well as discing of the soil to prepare it for planting, while simultaneously improving soil health. Opportunities exist for yield optimization through soil drainage improvements that can improve crop health and provide better conditions for completing field operations. Pending a successful wetland determination from the USDA, soil drainage projects will be completed in the fall of 2021.

Organic production and sustainable farm management practices aim to optimize annual income as well as optimize capital appreciation on the farm.

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Investment Highlights

  • + The minimum purchase is 5,000 Limited Units, or a $5,000 minimum investment. Additional purchases can be made in 1 Limited Unit increments ($1.00 increments).
  • + 7-year target hold period, with stable annual cash flows and potential for material long-term appreciation.
  • + The $280,000 non-recourse loan is subject to a 25-year amortization and 7-year fixed rate of 3.50% with annual payments due to the lender.
  • + SPV Lindmark Farm will receive rental income based on $315 per acre for 74 tillable acres in the first year of operation. Pending a successful USDA wetland determination in Year 1, drainage tile will be installed, and annual rental income will increase to $350 per acre for 74 tillable acres.
  • + The property will be managed by Peoples Company, a partner of mAgma, LLC, for an annual management fee set as 5% of Year 1 rental income.
  • + Any income not used to pay annual operating expenses will be held in SPV Lindmark Farm’s cash reserves. Upon the end of the target hold period, or otherwise at the general partner’s discretion, total cash reserves, including any cash remaining from initial cash reserve contribution and/or annual rental income, will be distributed to investors in an amount proportional to their ownership interest in SPV Lindmark Farm. When the SPV Lindmark Farm asset is sold, net proceeds from the sale of the asset will also be distributed to investors on a pro rata basis.

Risk Factors + Disclosures

mAgma, LLC and its affiliates, including its members, managers, employees, and authorized agents, are not Registered Investment Advisors, Broker/Dealers, Financial Analysts, Financial Banks, Securities Brokers or Financial Planners. Information and services are provided for information purposes only and are not intended to be and do not constitute financial advice, nor a recommendation to purchase, sell or hold any security, or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice.

Private Placement Offerings are being made pursuant to an exemption from registration pursuant to Rule 506 of Regulation D promulgated pursuant to the Securities Act of 1933 (the “Act”) and various state exemptions from registration. The Limited Partnership Units (“Limited Units”) will be offered to accredited investors who meet certain qualifications, as defined by the Securities and Exchange Commission (“SEC”) in Rule 501 of Regulation D of the Act. These qualifications are defined as an individual with either $1 million in net worth (all assets, excluding primary residence, less all liabilities); or net income for the last two years of $200,000 or greater ($300,000 if spouse has income) with a reasonable expectation of such earnings in the current year.

Neither the SEC nor any state securities commission has passed upon the accuracy or adequacy of the information contained in the Private Place Memorandum (the “PPM”). These securities have not been approved or disapproved by the Securities and Exchange Commission or any State securities commission. Any representation to the contrary is a criminal offense.

The Limited Units have not been registered under the Securities Act or any state securities laws, and may not be offered or sold, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. Further, a transferor of Limited Units must comply with the transfer restrictions set forth in Section 10.1 of the Partnership Agreement, which include but are not limited to the following restrictions: (a) the transferee of the Units cannot be: (i) a shareholder in an authorized farm corporation as described in Iowa Code Chapter 9H; (ii) a beneficiary of an authorized trust as described in Iowa Code Chapter 9H; or (iii) a limited partner in another limited partnership owning or leasing Iowa farm land; (b) the transfer cannot cause the Company to be in violation of Iowa Code Chapter 9I; (c) the transfer cannot cause the Partnership to be treated as a “publicly traded partnership”; and (d) the transfer cannot cause the Company to be an “Investment Company” under the Investment Company Act of 1940.

Investors should carefully read the PPM, the Subscription Agreement, and the Partnership Agreement before purchasing units.

Investors should fully read all risks related to the business and real estate investments as detailed in the Subscription Agreement and PPM. The risks of the investment include the risk of loss of the Investor’s entire investment and the lack of liquidity of the Limited Units. Investors should understand that the transfer of the Limited Units is restricted by federal and state law, that there will be no public market for the Limited Units, and that it may not be possible to sell or dispose of the Limited Units. Investors should be prepared to hold the Limited Units until the earlier of the sale of all or the vast majority of the Company's assets or dissolution of the Company. Investors should further understand that transfer of the Limited Units is restricted by the Partnership Agreement and that the transfer of the Limited Units must comply with the transfer restrictions set forth in Section 10.1 of the Partnership Agreement.

Each investor should consult his/her personal legal, investment and tax advisors with respect to the risks associated with an investment in the Company. Each investor must warrant that the subscriber meets various investment requirements as set forth in the Subscription Agreement and PPM and must follow the certification process incorporated into the mAgma platform.