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DST Farmland Launches Washington DST Offering

DST Farmland Launches Washington DST Offering.alternative investment, Delaware statutory trust, DST, DST Farmland, farm, farmland, investment.

DST Farmland, a Delaware statutory trust sponsor focused on investment in U.S. farmland, has formally launched Central Washington Farms DST through the AcreTrader platform.

The company is targeting an equity raise of $6.1 million.

The property is located in Grant and Adams Counties, Washington. Central Washington Farms DST includes 2,207 acres located in the Columbia River Basin of Washington State. The company says the farms have approximately 2,115 tillable acres that are subleased on a cash rent basis to experienced local row crop farm operators.

The portfolio offers diversification between dryland and irrigated cropland as well as crop production systems.

The company says farmland DSTs can take advantage of federal crop insurance that provides a minimum annual revenue guarantee, tenant rent for the year is paid in advance, and limited additional capital investment is needed to maintain the investment. In addition, the opportunity for grain prices and yields to increase over time allows for investors’ return potential to increase.

“In examining the Delaware statutory trust marketplace, DST Farmland saw a gaping hole in the lack of farmland assets for investors to consider. The reality is that farmland investments have traditionally outperformed the stock market and their value has exceeded other property types over the past eighty years,” Dave Muth, managing director of DST Farmland said. “With DST Farmland, Section 1031 investors will find something quite rare in the DST marketplace: an asset with historically consistent long-term appreciation, high potential upside for annual return with crop price and yield increases, limited downside risk with crop insurance revenue guarantees, low to negative correlation with public equities and high correlation with inflation.”

DST Farmland provides Section 1031 exchange investors with opportunities to directly engage the farmland asset class through Delaware statutory trust investment vehicles. As a sponsor entity, DST Farms specializes in identifying farmland that has the potential to deliver market returns and capital appreciation.

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