Promised Land Opportunity Zone Acquires Sixth Illinois Farm
Promised Land Opportunity Zone Farms I, LLC (“Promised Land”), an opportunity zone investment vehicle, is thrilled to announce the completion of its farmland portfolio with the acquisition of 597 acres in Henderson County Illinois. This purchase brings total acreage owned in Illinois to 1,450 acres; 1,367 tillable acres. The new farm, Honey Creek Farm, is located along the Mississippi River in western Illinois and will be farmed by Jenks Family Farms, a sixth generation Illinois farming operation.
“This seemed like a perfect fit,” says Andy Jenks, the farm’s tenant partner. “We were already farming these three parcels and the landowner gave us a heads up they were looking to sell. We knew the parcels were all located in the local Opportunity Zone and we were familiar with Promised Land’s rural development and community impact focus. So we reached out and are glad it worked out.”
It was important to both partners that the joint venture be a good long-term strategic fit. After a sit down breakfast, it became quickly apparent that Jenks Family Farm shared a lot of the same impact-driven values as Promised Land and its investors and partners. Jenks Family Farm is a family-oriented grain operation founded on hard work, honesty, integrity, and a dedication to agriculture. They are committed to sustainable farming practices, integrating new technology to improve productivity and profitability, maintaining and improving the land, developing lasting relationships with landowners, and providing employment opportunities to strengthen their local community.
“Like many of our other farmer partners, Jenks Family Farm is a high quality, efficient farming operation,” shares John Heneghan, Manager of Promised Land. “Andy knows the Honey Creek Farm really well, having farmed it for a number of years. It’s an excellent foundation for a long-term collaborative farming partnership. Case in point, the Jenks family are very active in their local community and have provided valuable input on how to best improve the productive capacity of Honey Creek Farm and the community.”
Honey Creek Farm is split into three tracts and is high quality farmland with rich soils, complimentary weather patterns for multiple crop types, and provides secure access to ground and well water. The location near the Mississippi River also makes it highly competitive logistically, with lots of nearby transportation routes by road and river. Although the farm is already highly productive, a few potential improvements are being considered for future implementation including: a new grain storage facility, tiling for drainage purposes, and land contouring.
In addition to producing rental income, the farm should continue to grow in value. According to the United States Department of Agriculture (USDA), average farm real estate values in Illinois appreciated 12.7% in 2022 compared to the year prior. According to the TIAA Center for Farmland Research, Illinois cropland has had an average appreciation rate of 6.7% per year ranking 7th in the nation over the last 20 years.
Promised Land was created to acquire, improve, and stimulate economic development associated with farmland located in qualified opportunity zones in the United States (“QOZs”). QOZs are communities designated by the IRS as “economically distressed”, in which improved farmland investments may be eligible for tax-exempt appreciation. New capital investment, such as a new grain system or drainage tile, is expected to spur economic activity, community revitalization, and job creation.
About Promised Land OZ: Promised Land is the leading rural development partner for Opportunity Zones located in American farming communities. Promised Land Opportunity Zone Farms I, LLC is a Qualified Opportunity Zone Business, as described by the Tax Cuts and Jobs Act of 2017. Promised Land currently owns approximately 9,009 acres in North Carolina, Illinois, South Carolina, and Mississippi. Launched in 2020, Promised Land partners with investors and farmers. Promised Land offers investors a compelling risk-reward profile of durable cash flows and tax-exempt appreciation potential through investing in U.S. farmland; while providing farmers a way to expand acres under management. Making it a win-win for both parties. With the completion of Farms I portfolio, Promised Land anticipates launching a second farmland focused opportunity zone vehicle in early 2023.
Accredited investors looking to buy dirt can contact Promised Land at firstname.lastname@example.org
Farmers looking to grow acres and owners and brokers with farmland for sale in Opportunity Zones are encouraged to contact Farmland Partners at email@example.com
Media contact: Delaney Howell, Delaney@AgCultureMarketing.com
SOURCE Servant Financial
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