Frequently Asked Questions

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Why should I consider investment in a commercial ranch?

As an asset class, US Ranchland has delivered returns similar to S&P500 index over the last 26 years, but on a fraction of the volatility.  It’s historically offered defense during periods of inflation, recession, and market volatility. Ranchland is a hard asset alternative that deserves consideration within a balanced portfolio allocation. See For Advisors page for more financial info.
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Is this investment secure?

Yes.  We've designed a simple platform where investors purchase land shares directly.  Offering documents provide steps for investors and advisors to independently verify the following:  1) specified land title; 2) contribution bank accounts; and 3) contractual assurance of property ownership transfer upon closing.
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Is the property cut up into parcels?

No.  The land title is placed into its own legal entity (LLC) and divided into shares.  Accredited investors purchase shares directly. The physical land is not divided nor apportioned.
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What is the standard investment term?

We generally target a five-year time horizon.
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What distinguishes Agisle from other Ag crowdsourcing platforms?

Agisle specializes in native pastureland suitable to regenerative livestock grazing.  We avoid higher-priced crop farmland.  The result is not only a lower cost basis per acre, but a uniquely sustainable and profitable investment model. Ranching is a rare production system where profitability and sustainability align.  What’s best for healthy, grass-fed cattle is precisely what benefits the land and flows to the bottom line.
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What kind of agricultural risk do I incur?

Agisle’s property offerings clearly separate “the land” from the “the agribusiness.”  Investors own the land and structures only—not cattle and equipment.  As a result, agribusiness risk is minimal.  The risk is not zero, however, because of the dividend.  Annual dividends are paid by the rancher who leases the land.  It's conceivable that financial troubles might hinder the rancher’s ability to pay rent.  It’s our job to hire reliable, experienced livestock operators, provide quarterly reporting, and ensure timely dividend payments.  If the rancher fails to honor lease terms, a new tenant will be found.
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How do I know I’m getting fair ranch value?

Agisle properties are independently valued by reputable appraisal firms that are well-regarded within the trust & estate community (as opposed to mortgage lenders).  Source data are corroborated by Agisle’s internal pricing models to validate comps at the county, state, and regional levels.  Agisle's fee structure incentivizes us to source the best-quality properties at the best-possible price.
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What constitutes good value in commercial ranchland?

Properties are identified on the basis of productive value—not consumptive value.  These are not trophy ranches. While they offer beautiful landscapes, clean streams, abundant wildlife, and a high aesthetic, make no mistake, these are working cattle ranches, selected on the basis of agricultural production.  By pooling capital and identifying commercial-scale tracts that rank favorably on a price-per-acre and price-per-animal basis, it’s believed an optimal balance of appreciation, yield, and capital preservation can be achieved to the benefit of fractional landowners. See For Advisors page for more details.
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What kind of communication and reporting will I receive?

Investors will receive a quarterly shareholder letter with updates related to valuation, agricultural news, macro trends, grazing & stocking developments, shareholder meetings, community outreach, and education initiatives.  A ranch is an investment that’s more than just a number on a screen. It restores a connection to the land, and brings communities together in partnership.
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Will I receive an annual K-1?

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How will annual performance be monitored?

An appraisal firm is retained to make year-end adjustment to ranch value estimates based on annual trends and relevant comparisons.  In addition, Agisle closely monitors USDA state and regional pasture value indexes.  These measures will form the basis for potential tender offers to shareholders who might wish to redeem shares before end-term.
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What if I want to withdraw my capital before end term?

The investment terms are designed to safeguard the integrity of the LLC partnership.  Restrictions on fund withdrawals protect the interest of its members.  That said, the historic stability and low volatility of US ranchland help facilitate ownership transfers.  Agisle will make every effort to facilitate redemption requests via tender offers and secondary transfers.
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Why "accredited investors" only?

As it stands, SEC regulations restrict equity crowdsourcing platforms of this nature to investors who meet specified guidelines.  See SEC guidelines here.  Contact us or a financial advisor for more details.
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Can I invest IRA funds?

Yes.  We can help connect you to independent IRA custodians who can facilitate agricultural real estate investments.
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Is this a time share?

No. These are commercial cattle ranches selected on the basis of long-term capital appreciation and economic productivity.  They are not vacation properties.
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Do I get to visit the ranch?

Yes. Agisle seeks to build community between like-minded partners through annual shareholder meetings, work days, community outreach, and educational seminars.  Quarterly shareholder letters will notify investors of these events in advance.
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Do I get free access to the land?

No.  For the protection of the lessee and the cattle operation, property access is controlled.  Shareholders may visit and inspect the property with 60 days written notice. We are very happy to help accommodate ranch visits! In most cases, hunting and fishing access can also be arranged for shareholders.
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Do I get a vote in how the ranch is managed?

No.  While we welcome feedback, all decisions reside solely with the assigned management company as specified in the LLC offering documents per stated goals and objectives.  This is for the protection of the partnership and its members.
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Why the platform fee?

Agisle is a fiduciary, not a broker.  We provide investors an integrated, turnkey investment solution, where the right property is connected with the right cattle operator, with the right grazing and stocking plans, with diligent oversight and reporting.  We charge a one-time 7.5% platform fee which covers the time, cost, and risk involved in making ranch opportunities available, and for providing operational oversight during the investment term horizon. Once you buy the land, you own the land.  There are no management fees, capital calls, nor debt obligations.  Annual tax and insurance expenses are deducted from gross dividends.
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Why an incentive fee?

Our goal is to deliver to investors the best-value ranch opportunities.  A 20% incentive fee will be assessed at end-term if, and only if, the realized compound annual total return exceeds an +8% hurdle rate. No incentive fee is charged on returns below the +8% hurdle.

While US ranchland has traditionally been a slow-and-steady performer, we believe there are scenarios where land values could break-out to the upside.  For example, during the high-inflation era from 1970 to 1980, agricultural real estate appreciated at annualized rate of over +14% according to USDA data. Financial and monetary instability has the potential to drive portfolio rotation into commodity assets like precious metals, land, and agriculture.  Hard asset rotation could potentially drive above-trend returns on commercial ranchland.
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Can I invest in the cattle operation too?

Not at this time, but it may become an option in the future. Please stay tuned.
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How does this investment benefit the environment?

The USA loses 3% of its ranch and farmland to development every year.  Your investment helps change that trend. High-density, rotational livestock grazing improves the nutrient density, microbial diversity, and carbon-storing capacity of the soil. Healthier soils, in turn, preserve perennial grasses, plant diversity, and delicate wildlife ecosystems, while staving off desertification and dustbowls.
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How does this investment help local communities?

By investing in the land, you’re supporting a rancher.  It's is a partnership that strengthens rural economies by creating jobs, services, and ties within the community.