Nashville, Tennessee-based LandFund Partners announced the launch of its second private equity fund, LandFund Partners II LP. LandFund Partners II will focus on row cropland in Arkansas and Mississippi in the Mississippi River Valley, and has begun with over $5 million in preliminary commitments.
Focusing on value per acre, LandFund Partners founder and president John Farris states that compared to other regions of the country such as the Midwest, farmland in the Mississippi River Valley offers a premium in regard to costs and yields per acre.
“Mississippi River Valley farmland is very attractive when compared to other regions. If you look at acreage costs and yields per acre in the Midwest and compare those prices to acreage costs and yields per acre in Arkansas and Mississippi, you will find that row crop farmland in our target region offers you much more value per acre,”
LandFund Partners acquires and holds high quality farmland with identified long-term water sources that is then rented to farm operators under the supervision of a professional management team.
LandFund Partners I closed in October 2013 on 2,400 acres of cropland in Mississippi after receiving capital commitments of $7 million, and LandFund Partners II has recently contracted to purchase its first tract of 2,500 acres of 95% irrigated cropland in Arkansas.
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