Peoples Company is pleased to present an unprecedented opportunity to own farmland in the desirable driftless region of southwest Wisconsin, located just two miles northwest of Spring Green and 37 miles east of Madison. The Farm will be offered in four tracts ranging from 61.30 acres m/l to 214.62 acres m/l via the multi-parcel auction method. The tracts can be purchased individually or in any combination.
The Farm is comprised of 514.37 acres m/l of certified organic farmland of which FSA certifies 488.94 acres m/l as tillable and 240.37 acres m/l as irrigated. Primary soil types include the highly productive Sparta loamy sand and Gotham loamy sand. The Clark Organics Farm is certified organic by Midwest Organic Services Association (MOSA), the second-largest organic certifier in the United States.
The Farm is equipped with five Valley pivots serviced by three high-capacity wells. The Farm has a long history of producing high-value crops such as seed corn, potatoes, green beans, alfalfa, and hemp. This Farm has been well managed by utilizing sustainable rotations to optimize organic production and maintain soil health. The area has numerous organic fertility sources from local poultry and hog producers, which provide an imperative, stable supply of high-quality fertilizer needed for an organic production system.
The Farm includes an operating sand quarry with deep frac sands providing monthly royalty payments to the landowner. The sand quarry is permitted for 71 acres and has a current lease in place with a local operator.
The Farm is currently pursuing approval for a wetland mitigation bank, providing significant long-term upside for the new owner to develop the bank and sell wetland mitigation credits. The draft mitigation banking instrument has been submitted and reviewed by the interagency review team. Approval of the bank is anticipated in 2022, yielding up to 150 wetland credits.
Contiguous parcels of farmland of this size and quality rarely become available to the public in this area. Take advantage of this limited opportunity to strengthen an existing operating with the Farm’s unique characterizes or leverage the diverse components of this Farm as an investment property.
Tract 1 consists of 169.30 surveyed acres of which 148.44 acres m/l are FSA tillable acres and 138.14 acres m/l are irrigated. The productive soil types on this farm include Sparta loamy sand and Gotham loamy sand, carrying an average NCCPI of 44.3. Tract 1 features a 125’ by 78’ dry storage facility which is conveniently located on the north side of County Road G. The storage shed has a cemented floor with seven individual bays, which provides the ability to store multiple organics crops such as potatoes, alfalfa, and green beans. Each bay measures 17’ 4” in width and has 14’ sidewalls. This tract has been managed with sustainable rotations to optimize organic production. Tract 1 is positioned to go into a high-value crop such as seed corn or potatoes for the 2022 growing season. The tract has three strategically placed Valley pivots that are serviced by one high-capacity well.
In addition, Tract 1 includes an operating sand quarry with deep frac sands suitable for uses such as livestock bedding, fill, and construction material. An engineering report indicates volumes of over 1.65 million cubic yards of sand on approximately 71 acres of Tract 1 with depths of approximately 30 feet. The owner is currently mining small areas of approximately 1 to 4 acres at a time. This sand mining operation was designed, marketed, and permitted as a long-term field leveling activity. The reclamation plan will result in a more farmable field with the replacement of all original topsoil.
The sand quarry is permitted for the mining of the entirety of the 71 acres. The current permit expires on September 27, 2023, and is transferable to new ownership. An application for renewal can be submitted six months prior to expiration. A copy of the permit is in the data room.
The quarry is under a 3-year lease agreement with a local operator and encumbers 16 acres of land. The owner receives $1.50 per cubic yard of sand that is extracted from the leased property. Total volume extracted in 2021 was 31,319 cubic yards with an average monthly income of $2,610 providing $46,979 in annual revenue. The quarry lease expires in 2023 at the same time as the mining permit. Both the active mining permit and the lease will be assigned to the buyer of Tract 1 at closing.
The leased property is defined as the corner of the Southeast ¼ of the Southeast ¼ of Section 35, Township 9 North, Range 3 East, in the Township of Spring Green in Sauk County, Wisconsin. The Lessee is responsible for all expenses associated with mining the sand. A copy of the lease is available in the data room.
The optionality of Tract 2 is unique in that it is a great piece of certified organic farmland but perhaps more important is the opportunity to develop this site into a wetland mitigation bank. The site is exceptional in that the landscape position, hydrology, and soils are uniquely positioned for the development of a wetland bank. The land is located in the lower Wisconsin Bank Service Area that has demand for wetland credits. The need for wetland credits continues to expand as the transportation, energy, and commercial development sectors demand credits to offset the development of wetlands in other areas.
Tract 2 consists of 214.62 surveyed acres with an estimated 175.69 acres m/l of irritated soils and 18.35 acres m/l of dryland acres. The productive soils types on this farm include Watseka loamy and Sparta variant loamy sand, carrying an average NCCPI of 56.2.
The current owner has been working with Jeff Kraemer of Heartland Ecological to gain approval of the wetland mitigation bank via a submittal of a Draft Mitigation Banking Instrument (MBI) that has been reviewed by the Interagency Review Team (IRT) for the proposed Big Hollow Mitigation Bank (MVP-2016-00537-KJH). The process of addressing IRT comments and editing the MBI is being completed with the expectation that the bank will be approved in 2022. Current estimates indicate the site could yield over 150 wetland credits. Acres that possess wetland credits are trading at values of $74,800 per acre and above.
Tract 2 represents an unprecedented opportunity for new ownership to complete the MBI process, develop the wetland, and reap the monetary benefits upon sale. Copies of the draft MBI are included in the data room. A webinar will be scheduled with Jeff Kraemer prior to the auction to discuss the proposed mitigation bank, current status, and timeline. Should a buyer wish to keep the land in production, the current owner has obtained a certified wetlands determination allowing for the installation of drainage tile.
*See Tract 4 irrigation comments regarding the pivot and well located on Tract 2.
Tract 3 consists of 69.15 surveyed acres of which 66.97 acres m/l are deemed FSA tillable and 62.6 acres m/l are irrigated. The productive soil types on this farm include Sparta loamy sand and Plainfield loamy sand, carrying an average NCCPI of 46.2. An engineering report estimates 120,900 cubic yards of sand are present. Tract 3 was seeded to Alfalfa seven years ago and has been producing average yields of 7 tons per acre with current protein levels of 21%. Tract 3 also has certified wetlands determination allowing for the installation of drainage tile.
Access to Tract 3 is provided by a 66-foot access easement for ingress and egress across part of the Northwest Quarter of the Northeast Quarter (NW¼-NE¼) and across part of the Southwest Quarter of the Northeast Quarter (SW¼-NE¼) of Section 2, Township 8 North, Range 3 East, Township of Spring Green, Sauk County, Wisconsin. A copy of this easement is available in the data room.
The neighboring landowner has allowed additional access for Tract 3 off Pearl Road. New ownership should seek approval to continue using this undocumented access for Tract 3.
*The pivot on Tract 3 encroaches on the neighbor’s land providing irrigation for a small portion of their property. New ownership should seek approval to continue the pivot’s encroachment on the neighbor’s property. *
Tract 4 consists of 61.30 surveyed acres of which approximately 39.63 acres m/l are tillable. The productive soil types on this farm include Sparta loamy sand and Pillot silt loam, carrying an average NCCPI of 57. This tract was seeded to alfalfa in the Spring of 2020 and is now positioned to produce high-value organic corn for the 2022 growing season. Recently harvested organic corn crops on this farm have produced 160 bushels per acre. Organic fertility from local poultry and hog production facilities provides fertilizer to support soil health.
Tract 4 is currently irrigated with the well and pivot located on Tract 2. In anticipation of pending approval of the wetland mitigation bank on Tract 2 and the upcoming sale, the seller has started the process to obtain approval for a new high capacity well on Tract 4. The seller has applied for a permit for a new high capacity well. Once the well is permitted and drilled this parcel will be positioned to provide water for approximately 39.63 irrigated acres. A copy of the Valley Irrigation Map Summary Report showing the proposed irrigation design is in the data room. Should the buyer of Tract 2 and 4 wish to work together post-closing, the seller has obtained quotes from North Central Irrigation, Inc. to pour a new pad, move the irrigation system from Tract 2 to Tract 4, re-nozzle the sprinkler, install a new well, and pump, and bury an electric line to reconnect the irrigation system on Tract 4. Tract 4 could potentially work with the buyer of Tract 2 to obtain water from the owner of Tract 2 for the 2022 growing season while a permit is pending for Tract 4.
If you are interested in this property and would like access to privileged documents, please contact:Jaxon Goedken