Clubb Farm: A Prime Acquisition for the Sower Farmland Fund
By Ethan Branscum, Senior Director of Portfolio Acquisitions, Sower Farmland | July 2024
In the second quarter 2024, Sower Farmland made a significant addition to its portfolio with the acquisition of a 1,639-acre farm in Avoyelles Parish, Louisiana. This farm offers diverse crop production capabilities, including sugarcane, rice, soybeans, and crawfish. Situated in a mature market for these crops, the farm presents a highly appealing investment opportunity within the agricultural sector.
Strategic Location and Market Appeal
The farm’s location is ideal, with several large sugarcane mills nearby, which are essential for processing the sugarcane crop. The presence of skilled sugarcane farmers in the area, equipped with the necessary tools and expertise, underscores the maturity of this market. These factors make the farm a valuable addition to the Sower Farmland Fund.
Unique Contiguous Tract
One of the standout features of the Clubb Farm is its configuration as a single, large contiguous block. Such large, unified tracts of land are rare, simplifying farm management and increasing its attractiveness to high-quality farming tenants. This enhances the farm’s marketability and operational efficiency, making it a strategic acquisition for the fund.
Crop Breakdown and Demand
The farm’s crop distribution is balanced, with 50% dedicated to sugarcane and the remaining 50% to rice, soybeans, and crawfish. The high demand for sugarcane, given the limited acreage suitable for its production, makes this farm particularly valuable. Louisiana’s optimal climate and developed market infrastructure for sugarcane, compared to Texas and Florida, further bolster the farm’s appeal.
Renewable Energy Potential
Clubb Farm also holds considerable potential for future renewable energy leases, particularly for solar energy. With a transmission line on the property and a substation just four miles away, the farm is well-positioned for solar development. Solar leases typically offer returns three times higher than traditional farmland leases, significantly boosting the farm’s potential profitability. Sower Farmland’s proven track record in extracting renewable energy value for its investors enhances the attractiveness of this acquisition.
Excellent Irrigation and Water Quality
The farm consists of 1,504 acres of irrigated tillable farmland and 135 acres of woods, roads, or ditches. It features three irrigation wells that use furrow row irrigation methods, with a static water level at 18 feet and the capability to pump up to 2,800 gallons per minute. Water quality tests have reported no salinity issues, ensuring the farm’s long-term irrigation capacity and crop productivity.
Soil and Crop Production
The north half of the farm, primarily dedicated to sugarcane production, boasts optimal soil types such as Coushatta silt loam and Coushatta silty clay loam. These lighter soils, combined with Louisiana’s 61 inches of annual rainfall, provide excellent conditions for sugarcane. The southern half of the farm, dedicated to rice, soybeans, and crawfish, consists of heavier soils like Moreland clay, suitable for rice production. Rice production requires heavier soil types in order to hold the flooded water on the rice crop during certain periods of the growing season. The crawfish are produced in conjunction with the rice production and are an excellent revenue stream for the farmer.
Summary
The Clubb Farm is a prime acquisition for the Sower Farmland Fund. Its high productivity, strategic location, and potential for renewable energy leases make it a highly attractive investment. The farm’s excellent water sources, irrigation capacity, and partnership with a top-tier sugarcane producer further enhance its value. This acquisition not only strengthens the Sower Farmland Fund’s portfolio but also aids in delivering robust and sustained returns for its investors.
