A consortium of professional athletes is investing in Iowa farmland.
Quarterback Joe Burrow of the Cincinnati Bengals, forward Blake Griffin of the Boston Celtics and pitcher Kevin Gausman of the Toronto Blue Jays are among those making the investment, according to KCCI.
According to FrontOfficeSports, the consortium, which includes about 20 other pro athletes, has created a pool of about $5 million that will be used to invest in agricultural projects.
Joe Burrow, Blake Griffin, and roughly 20 other athletes are purchasing a 104-acre farm in Iowa for roughly $5 million.
The group will eventually buy 4 more properties — leasing the land to farmers and seeking a single-digit-percentage annual return on the total investment.
— Front Office Sports (@FOS) January 10, 2023
The 104-acre property in northern Iowa will be leased to farmers, who will actually work the land.
The athletes investing in the project are looking for “a single-digit-percentage annual return on the total investment,” the report by Front Office Sports said.
Front Office Sports reported that other farms will be purchased in the coming years.
The projects could include more Iowa farmland, as well as watermelon farms in Oregon.
The current deal was conducted by Patricof Co., which seeks investment opportunities for athletes.
Founder Mark Patricof said economic factors limited agriculture investments in 2022.
“We did three investments last year after doing six the year before. The market changed. The world changed. Prices didn’t necessarily go down, but valuations should have, so we held back. It was the right time in the cycle to put money into this asset class,” he said.
According to the Des Moines Register, Patricof said the investment is the “first capital call in what will be a pool of capital to acquire multiple farms.”
New York Islanders left wing Anders Lee, Dallas Mavericks guard Kemba Walker, Milwaukee Bucks forward Khris Middleton, Arizona Cardinals tight end Zach Ertz and Bengals defensive end Sam Hubbard are among the other athletes who have invested in the project.
Iowa State University has said that the average value of Iowa farmland rose 17 percent in 2022, reaching $11,400 an acre, according to an annual survey.
KCCI reported the land would be used to grow corn and soybeans.
The Register said Iowa leads the nation in corn production and is second in soybean production.
The Register said Burrow has an Iowa connection. He was born in Ames, Iowa, and lived there until he was 4 years old. His father coached for Iowa State University.
This article appeared originally on The Western Journal.