Brodeur Family Farms: proposal to acquire approximately 200 acres of agriculture land

Diversify your investment portfolio with an Agriculture investment. Long-term 66 year-over-year increase in land price average is 4.75%. Time to invest in our farming operations.

Executive Summary

This proposal is for Brodeur Family Farms, located in Springville Iowa, to acquire approximately 200 acres of agriculture land. The land will be acquired by Q4 2016 and diversified based on the profile between hay, alfalfa, corn, beans, or free-range livestock. Brodeur Family Farms is seeking investors who wish to diversify their portfolio(s) with an agriculture land holding (yield the returns on the year-over-year market value increase in value of the land) but do not want the hassle of managing the land itself.

Investors will be allotted Redeemable Preferred Stock that will be tied to the Market Value of the rounds portfolio land acquisition. Land acquisition will be within a 15 mile radius of Springville Iowa. This land acquisition will take place in 2016 once minimum investor backing is achieved.

Background

Brodeur Family Farms is a farmer owned company. Our focus is on the long-term preservation of agriculture land and the environment to ensure long term viability and profitability for future generations and our shareholders. Our advisers and owners have over 100 years of experience in the agriculture industry. Our experience enables us to have a diversified portfolio of both agriculture, livestock, and renewable energy production to mitigate commodity risk.

Problem Statement

Corporate farms dominate the agriculture market making it harder for farmers to acquire land using loans. Loans thin the margin of the farmer making it more difficult to weather down years in production. Land agriculture loans are one of the primary reasons farms default during down years. Lowering the Loan to Value lowers the overall risk to the farmer and investors.

Corporate farms typically do not have as much long term investment in the land as a local farmer. As a local farmer we invest for the long term gains for both production and the environment. Without the pressure of thinning margins due to the pressures of being over leveraged we can improve the land and make it better for future farmers and find better alternatives (non-herbicide, non-pesticide methods) to managing our crop production.

Investor Benefits

• Stock will be backed by average land assessed value.
• Investment diversity; structured as inflation hedge not tied directly to stock market.
• 1950-2015 land price value increased 4.75% year-over-year in the market.
• Stock buyback plan; equity investment wind down structure after 10 years.
• Investors have no liability or responsibility for land management; not accountable for taxes, regulations, planning, financially (above investment).
• Annual financial report including land value perspective, management plans, and market perspective.

Farmer Benefits

• Lowers overall Loan To Value (LTV) of land by using higher ratio of investor equity.
• Lower LTV lowers overall operational risks and reduces liabilities.
• Wind down structure to take full ownership of the land.
• Investors have no liability or responsibility for land management; not accountable for taxes, regulations, management, financially (above investment).
• Annual financial report including land value perspective, management plans, and market perspective.

Vision

To build a diversified portfolio of agriculture land. Hedging short term crop and livestock commodities while capitalizing on long term land value holdings.

Increase the Market Value of the land portfolio by Investing in the land and infrastructure / operations which in turn improves production, minimizes environmental impact, improves future longevity and ultimately profitability.

Initiate multiple land backed equity investment rounds to minimize shareholder risks (risks including: geographical, agriculture, livestock) while stabilizing revenue and profitability.

Long term vision to develop a model for other farmers who want to enter the market but can not due to financial pressures from corporate farms.

Source: icnw