Promised Land Opportunity Zone Farms announced this week a $50 million debt financing facility with Conterra Agricultural Capital.
Promised Land was created to acquire farmland located in QOZs throughout the country. The fund currently owns approximately 3,800 across farms in Illinois, South Carolina, and Mississippi. The properties are managed by Farmland Partners, a publicly-traded agricultural REIT that owns 155,000 acres of farmland in 16 states.
Agricultural real estate investments could benefit from favorable supply and demand dynamics. A growing population translates to increased demand for agricultural commodities, while changing dietary habits worldwide are increasing demand for proteins in particular. On the supply side of the equation, the amount of land dedicated to farming has steadily declined over the last 20 years.
“Agricultural Opportunity Zones are a growing asset class in a fragmented sector ripe for consolidation,” commented John Heneghan, President of Servant Financial, which founded Promised Land. “This financing enables us to accelerate our pursuit of an active pipeline of potential investments and to continue expansion of partnerships with opportunity zone investors and agricultural lenders.”
The Promised Land OZ fund has a minimum investment of $100,000.