Offering Size-$8,875,247

Oak Ridge Pistachio Orchard

  • 9.8%

    Target Net IRR

  • 7.6%

    Net Cash Yield

  • 2.5x

    Net Equity Multiple

  • 11 years

    Target Hold

  • 30.0%

    LTV Ratio

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$15,000

Your Investment

$37,770

Total Target Net Returns

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Oak Ridge Pistachio Orchard is an excellent opportunity to invest in a peak-production, turn-key orchard producing a crop with surging domestic and global demand. All orchard development has already been completed, including irrigation system installation, land prep, planting, and years’ worth of pruning and maintenance of the trees. As a result, investors will gain exposure to the cash flows from this mature orchard without any additional investment in development, at a point in time when the trees on this orchard are entering the most productive phase of their lifespan.

All 152 of Oak Ridge Pistachio Orchard’s plantable acres were planted to Kerman variety pistachios in 2005, and will reach their peak level of production within 2 to 3 years. Given pistachio trees’ extremely long productive lifespan, which can often exceed 60 years, FarmTogether expects this orchard to remain at peak production throughout the 11-year hold period and beyond.

Oak Ridge is located in the Cawelo Water District, which is historically a well-managed and strong water district. The property has ample water sources via the District’s surface water, and groundwater access via two on-site agricultural wells. 

Cawelo Water District has delivered an average of 75,000 acre feet to its roughly 33,000 irrigated acres (2-2.25 acre feet per acre annually); it sits entirely within Kern County Subbasin. The Cawelo Groundwater Sustainability Agency (GSA) governs groundwater use in the district and administers its Groundwater Sustainability Plan (GSP). The Kern County Subbasin GSP prescribes a set of supply management and aquifer recharge projects, which the Cawelo GSA has implemented in order to sustain the basin’s groundwater resources over the long run without implementing pumping restrictions.

Pistachios have become one of the world’s favorite snack foods, with global consumption nearly doubling since 2010. The US supplies almost half of the global pistachio crop, and 99% of US pistachio production comes from California. With such a strong market backdrop, water-secure, mature pistachio orchards like this one are likely to appreciate in value significantly as demand for pistachios around the world continues to strengthen. Oak Ridge will be the fifth pistachio orchard added to FarmTogether’s managed portfolio over the last 12 months.

Given the closing timeline for this deal and the seller’s continued involvement in farm management during the escrow period over the course of the 2022 growing season, FarmTogether has determined that it was in our investors' best interest for the seller to retain responsibility for the 2022 crop. Our management of this farm will begin after the conclusion of the 2022 harvest, and investors will begin earning distributions from the farm’s net operating income as of the 2023 crop year. The first distribution is planned for 2024 once progress payments for the 2023 crop have been made.

Oak Ridge will be the fifth pistachio orchard added to FarmTogether’s managed portfolio over the last 12 months.

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