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Delta Organic Ag Properties DST is bringing the farmland asset class to the Delaware Statutory Trust marketplace through its sponsor entity, DST Farms. U.S. farmland delivers above market long-term returns with historically strong long-term capital appreciation when compared to other equity and fixed income investments. The U.S. farmland asset class also carries low long-term risk and provides unique, low correlation to primary economic drivers.

The Delta Organic Ag Properties DST offering includes 1,102 USDA certified organic acres located in the Mississippi River Delta region of southeast Arkansas. The offering is currently operated through a longterm lease with a single farm operator tenant. The organic production system on the farm will produce rice, wheat, soybeans and corn. The farm includes a highly efficient irrigation system that captures and recycles natural rainwater to irrigate the crops. The farm management practices focus on soil health and long-term sustainability to maintain and enhance the capital appreciation of the farm. Professional farm management services from Peoples Company are commissioned to ensure that farm operations will maximize annual revenue and long-term asset value. The organic production system provides significant investor value with organic crop prices typically 2-3 times conventional prices. A comprehensive asset management plan is being implemented to maximize the asset investment value.

THE PRUESS FARM

  • Located in Chicot County, Arkansas
  • 1,102 USDA certified organic acres – completed 3-year certification and entitlement process
  • 870 total tillable acres
  • Crops: corn, rice, soybeans and wheat
  • Efficient and redundant irrigation system
    • Tailwater recovery system
    • Two freshwater storage reservoirs
    • Six ground water wells
    • Use of electric power

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Partners

Sponsor | DST Farms

DST Farms, LLC provides Section 1031 exchange investors with unique opportunities to directly engage the farmland asset class through Delaware Statutory Trust (DST) investment vehicles. As a sponsor entity, DST Farms specializes in identifying high quality, sustainable farmland, including organic and regenerative systems, that has the potential to deliver above market returns and long-term capital appreciation, while mitigating investment risk.

ASSET MANAGER | PEOPLES COMPANY

Peoples Company is one of the few land transaction platforms in the country to have a true national presence in twenty-two states.

FARMLAND INVESTMENT PLATFORM

  • Comprehensive Asset Business Planning
    • Financial and operation modeling
    • Tenant network engagement
    • Annual asset business plan
    • Revenue protection strategies
  • Active Asset Management
    • Technology strategy development
    • Data reporting processes & infrastructure
    • Market development
    • Conservation & sustainability practice development

ASSET MANAGEMENT PLAN

FARM ENHANCEMENT ACTIVITIES

To establish optimal fertility and soil function as well as optimal water management
Soil health and management program

Soil samples scientifically analyzed by agronomist prior to acquisition to determine soil health improvement and optimization plan.

Clean, electric power sources for irrigation

Contracting with local power companies to bring electricity to property for lower cost and more environmentally friendly irrigation.

Reusable water reclamation systems and practices

Recently installed tailwater recovery (TWR) system provides state-of-the-art, environmentally friendly irrigation and drainage capabilities.

YIELD OPTIMIZATION

To increase annual net income and return to investors
Weed control practices and timing

Organic farming requires the use of mechanical and agronomic methods for managing weed control. During this phase of the asset management, the most effective methods and timing of weed control practices will be measured and identified.

Irrigation system optimization

Each crop will have unique needs for irrigation management. The timing and quantity of water delivered through irrigation will be tested and optimized for each crop.

Organic fertility

Multiple sources of organic crop fertility are available in the area. This phase will include testing and quantification of fertility sources and application methods on crop productivity and profitability.

ACTIVE MARKETING

To maximize the value of organic crops produced on the Farm
Marketing relationships

A continuous, dedicated effort will be engaged to build relationships in the marketplace, with the goal of delivering additional value to the crops produced.

Branding

Consumers’ preference for sustainably produced food products will be leveraged through a dedicated branding effort to deliver a sustainable production message associated with the crops being produced on the Pruess Farm.

Traceability

Leading-edge data tools will be used in the farming operations deployed on the Pruess Farm. These tools will provide the ability to deliver comprehensive data on the production practices for transparency in the supply chain, creating additional crop value.

BUSINESS STRATEGIES

Delta Organic Ag Properties DST is implementing five primary strategies to create positive and consistent investment outcomes from the Pruess Farm:

Business Strategies 1
Business Strategies 2
Business Strategies 3
Business Strategies 4
Business Strategies 5

U.S. Farmland

U.S. FARMLAND ASSET CLASS

$2.47 trillion worth of farm real estate in the U.S. as of 2017.1

U.S. Farmland generates over $370 billion annually in revenue from commodity cash receipts.1

Asset class in transition:

  • Shifting consumer preferences
  • Technology deployment
  • Ownership demographics
  • Financialization

Unique asset class that delivers high long-term returns, carries low longterm risk profiles, and maintains low correlation with primary economic factors.

1 USDA - Economic Research Service.

HISTORICAL PERFORMANCE OF U.S. FARMLAND

  • Farmland returns have been shown to be positively correlated with inflation
  • Farmland provides good diversification benefits due to the low or negative correlation of returns with equities and fixed income investments.

Appreciated value of a $1000 dollar investment placed in 1991, without consideration for taxes, dividends, or other distributions.

Data provided from the TIAA Center for Farmland Research, University of Illinois; and National Council of Real Estate Investment Fiduciaries, Total Farmland Returns

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Disclosure Statement

This document does not constitute an offer to sell a security, or a solicitation of an offer to purchase a security. No money or commitment is being requested at this time. No offer to sell or solicitation of an offer to buy may be made prior to the delivery by the sponsor of definitive documentation relating to a proposed investment (collectively, the “Offering Materials”), including without limitation (1) a Confidential Private Placement Memorandum describing the opportunity and the rights, preferences and obligations attached to the offered securities, (2) a Trust Agreement governing operation of the DST, and (3) a Purchaser Questionnaire and Purchase Agreement governing any formal offer to subscribe for interests in the DST. Offers, commitments and sales will only be made or accepted pursuant to the Offering Materials. The sponsor may accept or reject a prospective investor after review of the signed Offering Materials in its sole and absolute discretion. The Offering Materials shall supersede the information in this document in its entirety.

The Offering Materials will only be available to “accredited investors” as defined in the United States Securities Act of 1933, as amended. The Offering Materials will require each prospective investor to represent that it is sophisticated, meets any relevant regulatory requirements and has conducted such investigations as the investor and its advisors deem necessary. Each prospective investor is therefore urged to carefully review all of the Offering Materials and consult with its own tax, legal, financial and other advisers before making any investment decision.

This document is only a summary and does not purport to be complete. Accordingly, the information contained may be incomplete, inaccurate or condensed, is subject to change without notice and must not be relied upon by any prospective investor.

Neither the Offering Materials nor any offers of the securities thereunder have been registered under the United States Securities Act of 1933, as amended, or registered or qualified under any applicable state securities laws. Neither the Securities and Exchange Commission nor any state regulatory authority has reviewed or approved the terms or accuracy of the Offering Materials. It is illegal for any person to tell you otherwise. The opportunity mentioned in this document will not be registered in any jurisdiction and to the fullest extent possible any such offer will be made only pursuant to private placement exemptions available. It may therefore not be eligible for sale or investment in every state or country and may not be suitable for certain types of investors.