Property Info

Description

mAgma is excited to announce the investment offering of the Hamburg Delta Farm. The Hamburg Delta Farm will be a Tenancy in Common (TIC) structure. Use of the TIC structure enables individual owners to transact their ownership interest independent of remaining owners, allowing investors to complete Section 1031 exchanges both into and out of the ownership structure. The TIC will assign ownership interest directly proportional to each owner’s contributions at closing. All beneficial interests and capital requirements will be assigned based on TIC ownership interests for each member. The TIC is governed by a Tenancy Agreement defining the operating structure for ownership group.

The Farm consists of 761.96 acres m/l located in the Mississippi River Delta region of southeast Arkansas, just 7 miles northeast of Hamburg (population 21,853). The property includes approximately 683.95 tillable acres m/l suitable for conventional row crop production, with Grenada Silt Loam, Henry Silt Loam, and Calloway Silt Loam as the primary soil types. The tillable acres have been precision leveled. Irrigation is provided by six electric submersible wells. The property’s open fields and multiple access points provide for above average farming efficiency.

The Farm receives, on average, fifty-seven inches of rain per year with the majority of the rainfall occurring in the winter months. This rainfall pattern coupled with warmer temperatures through the growing season results in the requirement for irrigation infrastructure to maximize crop productivity. Critically, all tillable acres on the Farm are irrigated with water sourced from electric submersible wells.

The three most typical power sources for operating the engines that pump and distribute irrigation to crops are diesel fuel, propane, and electricity. Of these, only electricity provides no emission power. Accordingly, local power companies have been contracted to bring electricity to the property for lower cost and environmentally friendly irrigation. Typically, irrigated properties with electric power sources have lower annual irrigation operating cost and more automation for operations, all without the environmental risk of having diesel or propane fuel tanks built or stored on the property.

Sponsor

mAgma aims to increase access to high-quality U.S. farmland by allowing investors to easily buy and sell units with low investment amounts and competitive, diversified returns through a digital platform, while simultaneously creating an alternative equity source for landowners.

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