Welcome Kohl Farm – to the Legacy Farmland Fund!

Located in central Iowa, the Kohl Farm is a highly productive 192-acre corn and soybean farm.

Located in Linn County, IA, the Kohl Farm is the first farm contributed into the Legacy Farmland Fund. The farm is a piece of a larger portfolio of farmland holdings that have been owned and operated by the Kohl family for multiple generations. Primary soils for this property are silty clay loam which are optimal for corn and bean rotations. In addition to their row crop operations, the Kohls also have a robust cattle operation.

The transaction marks the successful execution of the 721 exchange model, which allows the property’s owners to defer capital gains taxes while transitioning their farmland into the Fund. In turn, the Fund will provide the Kohl family shareholders with a new avenue for access to capital, equitable property division and portfolio diversification.

“We are excited to announce our first farm contribution into the Legacy Farmland Fund,” said Eric Mueller, Founder and Managing Partner of the Legacy Farmland Fund. “The innovative 721 exchange model provides landowners with a unique opportunity to unlock the value of their farmland while deferring taxes. With the volume of farmland transitions expected in the coming decades, it’s crucial that landowners have more options. By enabling the seamless transfer of farmland into the Fund, we are creating a win-win scenario for landowners.”

It’s estimated that 370 million acres of U.S. farmland will transition from one generation to the next which provides complex challenges for farmland families with multiple heirs and differing interests and goals. Sower’s Legacy Farmland Fund is an excellent solution to this challenge. Farmland families can contribute their farmland through Section 721 of the Internal Revenue Code in exchange for an ownership interest in LFF.

For the Kohls, they now own partnership units of LFF rather than directly owning the farmland. The family can now equitably divide their ownership without selling the farm, breaking it up, or risking losing the right to operate the farm in the future.

Legacy Farmland Fund targets high-quality row crop farmland to the Fund and aims to provide shareholders with consistent returns, while also supporting the economic stability of farming communities and ensuring continued production on prime agricultural land. The Fund is actively seeking additional farmland investments through the 721 exchange process, and is welcoming new contributors to join the Fund.

For more information about how the 721 exchange works or to inquire about participation, please contact our team.