GRAHAM & DODD FARMLAND FUNDSM LLC A VALUE ADDED …€¦ · The Fund targets 13% -17% non-levered annual IRRs and strong repetitive annual cash yields and will leverage up to 50%

GRAHAM & DODD FUNDSM LLC IS A CERTIFIED MINORITY BUSINESS ENTERPRISE (“MWBE”) IN NEW YORK (BOTH THE STATE AND CITY)

MEMBER OF THE ILLINOIS CORN GROWERS ASSOCIATION MEMBER OF THE ILLINOIS FARM BUREAU

MEMBER OF THE IOWA FARM BUREAU

GRAHAM & DODD FARMLAND FUNDSM LLC

A VALUE ADDED FARMLAND ROLL-UP STRATEGY

Confidential

MISSION STATEMENT

To Improve, Manage and Deliver Attractive Value Add,

Double Digit Returns (Before Leverage), by Improving a

Diversified Sustainable Core of Underperforming Farmland

Assets in the U.S. Heartland and Increasing Rents and Values

of Those Underperforming Farm Properties in What Is a

Non-Correlated Asset Class.

2 Graham & Dodd Farmland FundSM

LLC

Confidential

OUR VALUE ADDED ROLL-UP STRATEGY HIGHER RETURNS THOUGH ECONOMIES OF SCALE AND PROVEN AG TECHNOLOGY IMPROVE FARM RETURNS AND VALUES

1. The most successful roll-ups target large and highly fragmented industries with no dominant player.

Row Crop Farming (corn and soybean) in the Midwestern US is one such industry. It is highly fragmented

with each farmer only owning on average less than 600 acres1 in a $2.4 Trillion US farmland market1.

With 250 million acres of farmland, there are no million acre Corn or Soybeans farms2 in the US Midwest.

2. Our General Partnership (including Commercial Family Farmers3) and our Farm Manager Busey Ag are

well positioned and have a proven4 operational formula that can be applied to acquire Under

Performing Farms with Grade A soils and improve those farms to Grade A yields and value through

drainage, irrigation, fertility, controlling pH factors and technologically modern farming equipment.

3. The Graham & Dodd Farmland FundSM

platform has a disciplined , systematic, and proven approach to

finding, evaluating and integrating Farm Targets into the Farm Improvement and Management program

developed by Busey Ag (which manages $1 Billion in Corn and Soy Farms) and the General Partners.

4. The Fund targets 13% -17% non-levered annual IRRs and strong repetitive annual cash yields and will

leverage up to 50% to achieve higher IRRs.


LLC

1. Corn and Soybean farms in IL, IN, IA Source: USDA Agricultural Resource Management Survey (ARMS), Farm Financial and Crop Production Practices Report or the year of 2015. 2. A few owners in Argentina do have close to half million acre soy farms, though these plots of land are not contiguous to one another. 3. We define commercial family farmers as farming families whose scale has put them in the top 10% of farm operations at well over $1 million in revenues from their farms. 4. Both Busey Ag, and Commercial Farmer Members of our Board have successfully implemented the strategy. One hard example owned by a member of the GP in the Fund is included in the Appendix of this presentation. Others can be provided upon request.

Confidential

EXECUTIVE SUMMARY


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FARMLAND IS A PROVEN INVESTMENT

Confidential

EXECUTIVE SUMMARY

Midwest Row Crop Farmland has on average, over the past 25 Years1, outperformed the S&P 500 by 200 bps annually

NCREIF Farmland Index average annual return vs S&P 500

+13.84% vs. +4.06% from 2000 to 20152

+11.84% vs. +9.81% from 1991 to 20151

Farmland3 has a low or negative correlation to most other asset classes

S&P 500 -0.013; 10 year US Treasury -0.133

Farmland is a recession resistant asset

In 2008, the S&P 500 returned -37.0% while the NCREIF Farmland Index returned +15.8%

¹ Data for 12/31/1990 to 12/31/2015 2 Data for 12/31/1999 to 12/31/2015 3 Data for 12/31/1990 to 12/31/2015 Farmland = NCREIF Farmland Index Sources: Data –NCREIF: National Council of Real Estate Investment Fiduciaries, S&P Dow Jones Indices, U.S. Federal Reserve Bank; Calculations of Returns & Correlations – Graham & Dodd Farmland Fund

SM LLC

SOLID RETURNS AND RECESSION RESISTANT WITH LIMITED CORRELATION


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OUR STRATEGY GENERATES INCOME AND HELPS LIMIT RISK

Confidential

OUR TEAM ADDS VALUE AND DRIVES RETURNS

EXECUTIVE SUMMARY

Focus on higher quality soil in Midwest US

Concentrate on annual row crops vs. permanent crops to lower risk profile

Utilize cash and flex leases to shift crop risk from farmland owner to farmer

Acquire underperforming properties that can be improved with professional management and disciplined capital investment

Graham & Dodd Farmland FundSM

team combines farming, farm acquisition, operations and investment expertise

Experienced team can access and quickly assess acquisition opportunities

Consistent and disciplined investment process drives efficient capital allocation

Significant opportunity to acquire undermanaged properties, apply latest technology and improve yields

$1 billion AUM farm manager Busey Ag Services attracts highly productive tenants and optimizes farm operations

Institutional-quality vehicle and oversight of high quality farmland portfolio


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THE GRAHAM & DODD FARMLAND FUNDSM LLC

DOES NOT ENDORSE THE USE OF GMOS

Confidential

ENVIRONMENTALLY SOUND INVESTMENT

According to the USDA, one acre of corn removes about 8 tons of carbon dioxide from the air in a growing season.

At 180 bushels per acre, corn produces enough oxygen to supply a year’s needs for 131 people.

At 240 bushels per acre, corn produces enough oxygen to supply a year’s needs for approximately 175 people.

Almost 20% of Food Calories in the World comes from Corn1.

BY GROWING CORN, OUR IMPROVING FARM YIELDS, IMPROVES THE LEVEL OF OXYGEN ONE ACRE AT A TIME


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CORN BASED ETHANOL HELPS KEEP THE ENVIRONMENT CLEAN

According to the EPA, burning corn based ethanol instead of gasoline (from petroleum) reduces greenhouse gas emissions by 23%.

Ethanol is produced from a renewable resource and represents about one-third of commercial corn use.

MODERN FARMING METHODS HELP PREVENT SOIL EROSION AND HELP PRESERVE WATER RESOURCES

1United States Department of Agriculture & Illinois Corn Growers Association

Confidential

THE FUND AND THE MANAGEMENT TEAM


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Fund Management Graham & Dodd Farmland FundSM LLC (Member of the Illinois Corn Growers Associations, Member of the Iowa Farm

Bureau, Member of the Illinois Farm Bureau)

Vehicle Graham & Dodd Farmland Fund I, LP (the “Fund”)

Farm Manager Busey Ag Services, Division of First Busey Corporation (NASDAQ Symbol: BUSE)

Target Raise US $250 Million

Strategy Focus on Investment in Farmland in the Midwestern US, with an emphasis on improving yield and values.

Term and Distributions 8 Years Term

Semi-Annual Income Distribution from Farm Cash Leases: Initial Distribution from Property Sales expected in 3 to 4

Years. Total Investment Time to full harvest expected to be no more than 6 years despite 8 year term.

1.75% Management Fee for first years, then dropping down to 1.25%, + 10% Incentive Allocation on Income and

Realized/Unrealized Gains, Investors fully paid back on investment prior to Incentive allocation on Gains.

Structure 3c1 Limited Partnership - Accredited Investors only as defined in Reg. D of the SEC Act of 1933.

Service Providers Fund Documentation: Foley & Lardner LLP & Arnold Porter Kaye Scholer LLP.

General Legal Counsel : Arnold Porter Kaye Scholer LLP

Fund Accounting & Audit: RSM US LLP. (fka RSM McGladrey)

Administrator: US Bancorp Fund Services, LLC

Status Graham & Dodd Fund® LLC is a Certified Minority Business Enterprise (“MBE”) in both the State and City of New York.

Confidential

KEY FUND TERMS


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FUND MANAGEMENT + FARM MANAGEMENT A UNIQUE COMBINATION OF FARMLAND OWNERSHIP, FARM MANAGEMENT AND INVESTMENT EXPERTISE

10

GRAHAM & DODD FARMLAND FUNDSM LLC

BUSEY AG SERVICES1

FARM MANAGEMENT FOR THE FUND

• 12 year history of U.S. equity portfolio management for institutional

plan sponsors (municipalities & states), corporate and union pension

plans and family offices. Combined Commercial Farming Partners

with decades of Commercial Soybean and Corn Farming on their and

others farmland.

• General Partner Members and the Advisory board combined have 100

years of Commercial Farming and farm investment experience as

purchasers, owners and operators of U.S. Midwestern Corn and

Soybean Farms and operate and manage approximately $200 million

of farmland.

• General Partner Members have an average of 32 years of finance and

investment experience as portfolio managers at major institutional

investment funds and managing directors of investment banking and

research departments at top tier investment banks.

• Parent - First Busey Corp (NASDAQ: BUSE)

• Busey Ag Manages over $1 billion in farmland for clients.

• An industry leader in farm management in the Midwest since 1926.

Designs farming improvement plans and executes with owners.

• Average industry tenure of Senior Farm Manager team is 30 years.

• Busey Ag secures high quality farm investment opportunities and farm tenants, coordinates capital projects, and drive, farm operational efficiencies to increase crop yields and farm values as it has done for decades.

Confidential Graham & Dodd Farmland FundSM

LLC

1 Busey Ag Services , a division of Busey Bank, is not affiliated with the Fund, Graham & Dodd Farmland FundSM

LLC or Graham & Dodd Fund® LLC and is not offering interests in the Fund. Pursuant to a master services

agreement between Busey Ag Services and Graham & Dodd Farmland FundSM

LLC, Busey Ag Services will provide certain farm management services to the Fund and assist the Fund in locating farm properties. Busey Ag Services and its affiliates are not responsible for investment decisions regarding the Fund’s investments. (see full disclosures on the last page of this presentation)

FOCUSED INVESTMENT STRATEGY

Confidential

GEOGRAPHIC FOCUS

CASH LEASE & FLEX LEASE

TARGETED CAP EX

UTILIZE BUSEY AG NETWORK

PORTFOLIO DIVERSITY

Focus on row crop farmland (corn and soybeans) in the Midwestern US which has far less risk

than permanent crops (trees etc).

Focus on cash and cash flex leases – generates cash income with limited credit and no direct crop risk

Flex leases allow for crop upside without crop risk

Targeted capital improvements to increase overall return on crop yield and investments,

particularly in the areas of drainage, fertility improvement and pH

Use Busey Ag’s relationships and those of our commercial farmers to access property

transactions, as well as farmer organizations, auction houses and brokers known to our

Managing Member and GPs.

Diversify risk across multiple tenants, locations, crops

LIMITED LEVERAGE Moderate leverage at property level


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Confidential

FARMLAND AS AN INVESTMENT


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Farms with $1 million or more in annual sales—only 4% of the total—now produce two-thirds of the country’s agricultural output, the largest portion since the U.S. Agriculture Department’s (USDA) census began tracking the statistic in the ’80s. WSJ Oct. 23, 2017

Confidential

Source: USDA Economic Research Service 2014 TOTAL Survey

39% OF U.S. FARMLAND IS CURRENTLY LEASED BY THE LANDOWNER TO A FARMER IN A WELL-ESTABLISHED RENTAL MARKET

TRADITIONAL INSTITUTIONS HAVE ONLY RECENTLY BEGUN TO PENETRATE THE FARMLAND MARKET

THE AVERAGE FARMER OWNS ABOUT 600 ACRES REQUIRING THEM TO LEASE MORE LAND TO BE EFFICIENT AND OFTEN PROFITABLE

OWNED AND OPERATED

BY THE FARMER

LEASED TO A

FARMER

PROFILE OF FARM OWNERSHIP

13

Farmland Owner Operated vs. Leased 2014

Corporate, Institutional

Trusts & Other 10%

Individuals & Partnerships

29%

Farmer-Owner Operator

61%


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The 61% Farmer-Owner Operators Compete to Lease the other 39% of Farmland. This to achieve profitability and efficiencies of scale in the use of new technology and modern farming equipment.

Confidential

MIDWEST CROPLAND1 AND NCREIF FARMLAND INDEX HAVE OUTPERFORMED SEVERAL TRADITIONAL ASSET CLASSES (1991 – 2015) 2

WORST AND BEST 10-YEAR AVERAGE ANNUAL RETURNS FOR MIDWEST CROPLAND1 WAS +4.60%3 AND +26.63%3 (YRS. ENDING 1980 – 2015)

ATTRACTIVE RISK ADJUSTED RETURNS

1 Midwest Cropland Returns for IA IL IN MN NE SD 2DATA FOR 12/31/1990 TO 12/31/2015 3 DATA FOR RETURNS COVERING 12/31/1970 TO 12/31/2015 Sources – Data: 1. TIAA-CREF Center for Farmland Research 2. NCREIF Farmland Index & NCREIF Property Index from www.NCREIF.org 3. Producer Price Index: PPI Seasonally adjusted Final Demand – Finished Goods from US dept. of Labor - Bureau of Labor Statistics 4. 10-Year Treasuries: 10 year Constant Maturity Treasury Total Return calculated from yield (Federal Reserve of St. Louis FRED) 5. S&P500 Index: S&P 500 Total Return: S&P Indices website 6. BofA Merrill Lynch US High Yield Master II Total Return Index© from FACTSET 7. Barclays Agg: Barclays U.S. Aggregate Bond Index Total Return from FACTSET. Sources – Calculations & Graph: Graham & Dodd Farmland Fund

SM LLC


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0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

11.0%

12.0%

13.0%

14.0%

15.0%

Co

mp

ou

nd

ed A

nn

ual

Gro

wth

Rat

e

Standard Deviation

Asset Class Returns vs. Standard Deviation 1991 - 20152

PPI

Barclays US Agg.

Midwest Cropland1

NCREIF Farmland Index

NCREIF Property Index

10 Yr Treasury

Merrill Lynch US HY

S&P 500

http://www.ncreif.org/

TARGETING UNDERPERFORMING FARMS IN

WHAT IS A CAPITAL INTENSIVE BUSINESS

Confidential

Source: Data – FINBIN, The Center for Farm Financial Management, University of Minnesota; Graphs - Graham & Dodd Farmland FundSM

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FARM INCOME DISTRIBUTION HIGHLIGHTS OPPORTUNITY SET

15

Bottom 20% 20-40% 40-60% 60-80% Top 20% $(150,000)

$(100,000)

$(50,000)

$-

$50,000

$100,000

$150,000

$200,000

$250,000

Med

ian

Net

Far

m In

com

e

Quintile

2014 Median Net Farm Income Distribution


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Target Underperforming Farms with high quality soils that need Capital Improvement and better farming technology and management to optimize yields.

Confidential

HISTORIC RETURNS ON FARMLAND VALUES

Sources: Data - Center for Agriculture and Rural Development, Iowa State University Extension and Outreach file C2-70 December 2016; Graph - Graham & Dodd Farmland FundSM

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THERE HAS BEEN AN IMPRESSIVE CREATION OF VALUE IN FARMLAND OVER TIME

WE VIEW RECENT RETRENCHMENT AS AN OPPORTUNITY TO ACQUIRE AN ATTRACTIVE PORTFOLIO OF UNDERPERFORMING ASSETS


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$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

19

91

19

92

19

93

19

94

19

95

19

96

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

Val

ue

per

Acr

e

Average Farmland Value In Iowa 1991 - 2016

Confidential

Sources – Data: 1. NCREIF Farmland and Property Index from www.NCREIF.org 2. Producer Price Index: PPI Seasonally adjusted Final Demand – Finished Goods from US dept. of Labor - Bureau of Labor Statistics 3. S&P500 Index: S&P 500 Total Return from S&P Indices website 4. 10 Year Treasuries: 10 year Constant Maturity Treasury Total Return calculated from yield (Federal Reserve of St. Louis FRED) 5. Merrill Lynch HY Bond Index: BofA Merrill Lynch US High Yield Master ll Total Return Index© from FACTSET 6. Moody's Aaa Bonds: Moody's Seasoned Aaa Corporate Bond Yield© Total Return calculated from yield (Federal Reserve of St. Louis FRED) 7. Barclays Agg: Barclays U.S. Aggregate Bond Index Total Return© from FACTSET Sources – Correlation Calculations: Graham & Dodd Farmland Fund

SM LLC

FARMLAND PROVIDES LOW CORRELATION AND DIVERSIFICATION


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12/31/1990-12/31/2015

versus NC RE IF

F armland Index

NC RE IF F armland 1.00

NC RE IF Property Index 0.42

Producer Price Index 0.34

S&P 500 TR -0.01

10 Year C MT TR -0.13

Merrill L ynch HY B ond Index -0.20

Moody's Aaa B onds -0.21

B arclays Agg. B ond Index -0.35

C orrelation of Returns

http://www.ncreif.org/

POPULATION DEMAND & FARMLAND SUPPLY CHALLENGES

Confidential 18 Graham & Dodd Farmland FundSM

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FOOD AS A SCARCE RESOURCE

Confidential

Source: Data – OECD.Stat; Graph - Graham & Dodd Farmland FundSM

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PROJECTED GROWTH IN GLOBAL POPULATION

ESTABLISHED AND VISIBLE AGRICULTURE DEMAND DRIVER IN PLACE

PROJECTED EMERGING POPULATION GROWTH DRIVING +38% INCREASE IN GLOBAL POPULATION 2010 – 2050E

3,500

4,500

5,500

6,500

7,500

8,500

9,500

1970 1975 1980 1985 1990 1995 2000 2005 2010 2015E 2020E 2025E 2030E 2035E 2040E 2045E 2050E

Glo

bal

Po

pu

lati

on

in m

illio

ns

Historical and Projected Global Population 1970 - 2050E


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Confidential

Source: Data – U.N. FAO (2015, 2030 and 2050 data are estimates); Graphs - Graham & Dodd Farmland FundSM

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PROJECTED GROWTH IN FOOD CONSUMPTION

World

Developing Countries

Developed Countries

2000

2200

2400

2600

2800

3000

3200

3400

3600

1970 1980 1990 2000 2010 2020 2030 2040 2050

kcal

/per

per

son

/per

day

Per Capita Food Consumption

DEVELOPING WORLD POPULATION GROWTH OUTPACING GLOBAL POPULATION INCREASE

RISING EMERGING WORLD INCOMES DRIVE CALORIC CONSUMPTION AND GRAIN DEMAND


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Confidential

Source: Data – The World Bank: World Development Indicators; Graph & Calculations – Graham & Dodd Farmland FundSM

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U.S.

World

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

2.2

2.4

1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012

Acr

es o

f A

rab

le L

and

per

Cap

ita

Arable Land per Capita in Acres

U.S. ARABLE LAND PER CAPITA HAS DECLINED 48% SINCE 1970 FROM 2.3 ACRES TO 1.2 ACRES IN 2013

CONTINUED LAND DEVELOPMENT AND URBANIZATION WILL PRESSURE SUPPLY OF U.S. AND GLOBAL FARMLAND

FARMLAND SUPPLY CHALLENGES


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Confidential

WATER STRESS AND LAND DEVELOPMENT LIMIT SUPPLY OF FARMABLE LAND

Sources: U.S. Geological Survey Scientific Investigations Report 2013−5079

DEPLETION OF AQUIFERS WILL PRESSURE FARMLAND WATER RESOURCES AND CHANGE ECONOMICS OF FARMING

WATER STRESS SHOULD SUPPORT VALUATION OF ACQUIRED FARMLAND WITH SUSTAINABLE RESOURCES

FARMLAND SUPPLY CHALLENGES


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Confidential

Source: Foreign Agricultural Service/USDA - Office of Global Analysis Report “Grain: World Markets and Trade - February 2018”


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1.4%

1.6%

2.4%

2.6%

2.6%

3.8%

5.7%

9.2%

9.4%

20.4%

35.8%

Russia

South Africa

India

Mexico

Ukraine

Argentina

European Union

Brazil

Others

China

United States

Percentage of the Worldwide Production 2016/17

WORLDWIDE LARGEST CORN PRODUCERS BY COUNTRY 2016/17


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1.9%

3.0%

3.3%

3.7%

16.5%

32.5%

33.3%

Canada

Paraguay

India

China

Argentina

Brazil

United States

Percentage of the Worldwide Production 2016/17

WORLDWIDE LARGEST SOYBEAN PRODUCERS BY COUNTRY 2016/17

Source: Foreign Agricultural Service/USDA, Office of Global Analysis - Table 11 Soybean Area Yield and Production - January 2018


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PROFESSIONAL FARM MANAGEMENT & FARMING TECHNOLOGY

INCREASE BOTH FARM YIELDS AND PROFITS

Confidential

Source: Schnitkey, G. “Decreasing 2016 Cash Rents on Professionally Managed Farmland and Lags in Cash Rent Changes” farmdoc daily (5):174, Dept. of Agriculture and Consumer Economics, University of Illinois at Urbana-Champaign, Sept. 22 2015

PROFESSIONAL FARM MANAGEMENT ADDS VALUE

FARM MANAGERS HIRE TOP GROWERS, APPLY BEST PRACTICES, ENHANCE PERFORMANCE

BETTER PERFORMANCE HELPS ACHIEVE HIGHER RENTS


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Confidential

Source: Data - USDA National Agricultural Statistics Service ; Graphs - Graham & Dodd Farmland FundSM

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FARMING TECHNOLOGY IMPROVES CROP YIELDS

60

80

100

120

140

160

20

25

30

35

40

45

50

19

70

1

97

1

19

72

1

97

3

19

74

1

97

5

19

76

1

97

7

19

78

1

97

9

19

80

1

98

1

19

82

1

98

3

19

84

1

98

5

19

86

1

98

7

19

88

1

98

9

19

90

1

99

1

19

92

1

99

3

19

94

1

99

5

19

96

1

99

7

19

98

1

99

9

20

00

2

00

1

20

02

2

00

3

20

04

2

00

5

20

06

2

00

7

20

08

2

00

9

20

10

2

01

1

20

12

2

01

3

20

14

Co

rn B

ush

els

per

acr

e

Soyb

ean

Bu

shel

s p

er a

cre

Corn and Soybean Crop Yields Avg. Corn Yield 1970 = 72 bu/acre Avg. Corn Yield 2014 = 171 bu/acre

Soybeans Corn


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Confidential

TOP FARMERS AND TARGETED CAPITAL EXPENDITURE CAN IMPROVE YIELDS

INCREASES IN YIELDS TRANSLATE INTO INCREASES IN RENT

CROP YIELDS DRIVE RENTS

28

Source: Data - U.S.D.A. National Agricultural Statistics Service; Graph – Professor Nicholas Paulson, Dept .of Agricultural and Consumer Economics, University of Illinois Urbana-Champaign


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Confidential

Target farms with potential for capital improvements to increase farm productivity and land value

Measure and maximize return on invested capital (ROIC) of every dollar of capital expenditure

A disciplined and systematic approach to acquiring farmland

Weigh productivity, potential capital projects, water security, potential rent and price

Look for farmland that has ample access to water resources

Engage top tier growers using best practices via Busey Ag Services and the Fund’s Advisory Board

Experienced commercial farmers applying advanced equipment, technology, water & soil management and sustainability techniques

Set operating standards to be monitored and maintained by Busey Ag

High performance tenants drive higher yields, higher rents, higher farmland values and Fund returns

Apply risk management policy across portfolio

Disciplined acquisition and sales process, conservative financing, operational excellence

Diversify holdings across multiple tenants, locations and crops


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DISCIPLINED AND CONSISTENT STRATEGY

Confidential

Our focus on row crops lowers risk profile vs. permanent crop exposure

Row crops mature annually vs. multiple year maturity curve for permanent crops

Risk of disease, fire and extreme weather limited to one season

Insurance will be required of all Graham & Dodd Farmland FundSM tenants

Federally subsidized crop insurance lowers farmer return volatility

Insured tenants protected from crop disaster

Programs enhance the long term stability of farmers

Utilize cash and cash flex lease structure to limit crop risk

Contractual payments fixed and portions paid in advance of season

Crop exposure only at the landowner’s option

Long term fund structure reduces the exposure to any single crop season



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Confidential

A+ to B+ farms under-producing relative to soil quality

Fixable productivity problems

Too much Water collecting on Farm with Poor

Drainage,

Low Fertility or

Soil pH below or above optimal pH levels for corn and

soybean

Dated Farming Methods or Technology that can be

improved to increase yields

Underperforming farmers/tenants

Potential for removal of trees and structures

WHAT WE LOOK FOR IN FARMLAND

31

Secure water resources and outlets

Ability to maintain top soils and avoid erosion problems

Availability of Top Technologically Advanced Commercial Farmer

talent to lease to in the vicinity

Proximity to critical infrastructure (roads, bridges, grain

elevators, silos, and markets)

Additional revenue sources such as electric, wind and natural

resource rights

A preference for Privately marketed properties


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Confidential

Vulnerable water access

High risk aquifers and poor rainfall patterns

Limited quality commercial farmer talent pool

Long term High crop risk leases

History of highly variable acreage returns

Highly visible and competitive farm sales process

WHAT WE AVOID IN FARMLAND

32

Low quality soils

Intractable problems

Poor topography

Permanent erosion of top soil

Permanent drainage issues

Limited proximity to infrastructure

Physical access challenges


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Confidential

Review Basic Info

and Materials

Input Data for Stringent Criteria Screen

With Busey Ag and General

Partners that are

Commercial Farmers

Prioritize Properties That Meet

Criteria Tests

Info Package to Commercial Farmers on

Advisory Board and get Input

Due Diligence Approval

Retain Farmland Appraiser

Detailed Due

Diligence

Formal Investment

Memo

Advisory Board

Review

Investment Decision

Engage Counsel

Negotiate Price and

Terms

Close Purchase

Agreement

P r o p e r t y A c q u i s i t i o n P o r t f o l i o M a n a g e m e n t

Ongoing

Monitor Investment Portfolio

Update Status on Upgrade Projects

Quarterly

Market and Portfolio Reviews for the Advisory

Board

Valuation Appraisals

Seasonal

Planting and Input Strategy

Harvest and Market Plan

Annual

Review Tenant Performance

Set and Approve Contracts

CONSISTENT AND COMPREHENSIVE INVESTMENT PROCESS EXPERIENCED BOARD ACTIVELY ENGAGED IN PROPERTY ACQUISITION


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Confidential

GENERAL PARTNERS OF GRAHAM & DODD FARMLAND FUNDSM LLC

34

COMBINING COMMERCIAL FARMING, FINANCE, AG COMMODITIES AND PORTFOLIO MANAGEMENT EXPERIENCE

•35 years in Finance Industry

•PM, Co-Head, Alcentra US (BNY Mellon) Fixed Income

•PM and Head of Group Credit Committee, Rabobank Intl.

•MD, High Yield PM, Carlyle Group

•Sr. PM, HY Head, FFTW

•Univ. of California, Berkeley, BA Economics

•Columbia Business School, MBA

Ronald M. Grobeck, CFA

General Partner & Portfolio Manager

David Montero-Rosen

General Partner, CEO & Chief Investment Officer


•MD, Global High Yield Research,

Head of Fixed Income, EM Research Bear Stearns & Co. Inc.

•SVP, Head of Emerging Markets & International Equity Research, Kidder Peabody & Co. Inc.

•London School of Economics, BSc Economics

•Stern School of Business NYU, MBA Finance


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Mark D. Fichtel, CFA

General Partner & Advisory Board


•Former President/CEO of The New York Board of Trade

•Office of the Chairman, American Stock Exchange

•MD, Kidder Peabody & Co.

•Independent Consultant for Global Research Settlement, SEC

•Principal, DF Group Consulting LLP

•Principal, Pegasus Growth Partners

•Member, New York Society of Security Analysts

•Princeton University, BA History

,

Peter Pistorius

Commercial Farmer

General Partner & Advisory Board

•Commercial Farmer – 20 years in Corn/Soybean/Organic Popcorn Farming in IL

•Family Farming Business Since 1884

•11,500 Acres Commercial Farming Operations

•Member, Illinois Agricultural Leadership Foundation Board

•Illinois Soybean Association Soy Leader

•Illinois State University, BS Agribusiness

Christopher Redpath

General Partner & COO


•Director of Operations

•Chief Compliance Officer

•Head of Interest Rate Risk Management, IBJ Schroder Bank & Trust Co.

•Founding Partner, BrightLine Partners LLC

•Dartmouth College, BA Economics

•Columbia Business School, MBA Finance

Confidential

FARMLAND MANAGER: BUSEY AG SERVICES, SENIOR MANAGEMENT TEAM

GRAHAM & DODD FARMLAND FUNDSM

LLC TEAM

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Steve Myers

SVP Director of Busey Ag Services

Farm Manager, and Broker

•28 years in Agriculture Industry

•25 years with Busey Ag Services

•Accredited Farm Manager

•Certified Crop Advisor

•Licensed Real Estate Broker and Auctioneer

•Member - Illinois Society of Professional Farm Managers and Rural Appraisers, American Society of Farm Managers and Rural Appraisers

•National Farm Manager of the Year - American Society of Farm Managers and Rural Appraisers and the McLean County Conservationist of the Year

•Current Farmland Owner

•Illinois State University, BS Agricultural Education

Dean Kyburz

SVP, Managing Real Estate Broker and Lead Appraiser



•Certified General Real Estate Appraiser

•Licensed Real Estate Managing Broker

•Member and Regional Chair - Illinois Society of Professional Farm Managers and Appraisers’ Yearly Illinois Farmland Values and Lease Trends Report

•Member of the Southern Illinois University College of Agriculture Ag Leadership Board

•Former Commercial Farmer, Crop Scout, Central IL

•Former Appraiser, Federal Land Bank of St. Louis

•Southern Illinois University, BS Vocational Agriculture, MS Agricultural Economics

Tom Courson

SVP, Senior Farm Manager, Real Estate Broker



•Licensed Real Estate Broker

•Former District Manager of Stine Seed Company

•Member - Illinois Society of Professional Farm Managers and Rural Appraisers, American Society of Farm Managers and Rural Appraisers

•ISPFMRA Committee Member – Illinois Farmland Values and Lease Trends Report

•Licensed Illinois Real Estate Appraiser - Trainee

•University of Illinois, BS Agriculture Economics


LLC

Confidential

Jane A. Hays

Attorney & Managing Director Insurance Co.

Kenneth Hendren

Commercial Farmer

•Commercial Farmer - 45 years in Corn/Soybean Farming in Illinois

•4,600 acre Commercial Farming Operation

•Owns Custom Spraying/Seed Corn Detasseling Business

•Seed Corn Grower under contract from Monsanto

•Board Member, Busey Bank since 1995

•U of IL, BS Agricultural Economics

•35 years in Insurance, Law Practice

•MD, The Downey Group

•Former Trustee, State Universities Retirement System of Illinois (SURS)

•Board Member, Illinois Board of Higher Education, Illinois Humanities Council

•Member, Dean’s Advisory Committee of U of IL College of Law

•U of IL, BA English

•U of IL College of Law, JD

GRAHAM & DODD FARMLAND FUNDSM LLC TEAM

36

FUND ADVISORY BOARD

COMBINING FARMLAND ACQUISITION, COMMERCIAL FARMING, ACADEMIC KNOWLEDGE AND INVESTMENT EXPERIENCE

Steve Wentworth

Commercial Farmer

•Commercial Farmer - 43 years in Corn/Soybean Farming in Illinois

•Former Agricultural Policy Advisor, IL Dept. of Agriculture

•Past President and Chairman, National Corn Growers Association

•Former VP, Macon County Farm Bureau

•Board Member, Evergreen FS Inc.

•U of IL, BS Agricultural Economics


LLC

•Associate Professor at University of Illinois, College of Agricultural, Consumer Environmental Sciences

•Commercial Farming background – grew up farming corn & soybeans on his family’s farm

•Contributor to “farmdoc”, a research source on farming finance, management and decision making, regularly publishing reports , case studies and other research

•Iowa State University, PhD Agricultural Economics, BS, MS

Dr. Nicholas Paulson, PhD

Professor College of Agriculture

University of Illinois

Confidential

FIRST BUSEY CORPORATION BUSEY SUBSIDIARY BUSEY AG SERVICES IS OUR FARMLAND MANAGER

37

First Busey Corporation: publicly traded financial holding company (NASDAQ symbol – BUSE)

First Busey Corporation is Bank Holding Company with approximately $7 Billion in assets

Busey Bank has offices in Illinois, Indiana, Missouri and Florida Founded 1868, Headquarters located in Champaign, Illinois Rated 5 star by Bauer Financial in 2014-2015 Recognized by Forbes magazine as one of America’s most trustworthy companies in 2014

Busey Ag Services1: an industry leader in farm management, founded 1926

A leading farmland manager in Midwestern US with $1 billion of farmland under management Manages Farmland in Illinois as well as Indiana, Iowa, Montana, North Dakota and Louisiana Manages farmland for over 500 domestic and international individuals and institutions Busey Ag senior team has an average of 33 years of professional experience managing farms

1 Busey Ag Services, a division of Busey Bank, is not affiliated with the Fund, Graham & Dodd Farmland FundSM LLC or the Parent and is not offering interests in the Fund. Pursuant to a master services agreement between Busey Ag Services and Graham & Dodd Fund® LLC, Busey Ag Services will provide certain farm management services to the Fund and assist the Fund in locating farm properties. Busey Ag Services and its affiliates are not responsible for investment decisions regarding the Fund’s investments. (see full disclosure on the last page of this presentation)


LLC

Confidential

The Graham & Dodd Fund® LLC was founded in 2003 as a public equity asset manager in the US large cap value space. Its founder, Mr. David Montero-Rosen had previously been a

Managing Director at Bear Stearns and has over 30 years of senior Wall Street experience, having managed investment banking and research departments. The Graham & Dodd Farmland

FundSM LLC is a wholly-owned subsidiary of the Graham & Dodd Fund® LLC. The Graham & Dodd Fund® LLC has a noteworthy record of equity investments having returned 10.48%

gross annualized return and 9.88% net return since inception (Oct. 15, 2003 to Dec. 31, 2015) versus the S&P 500 annualized return of 7.81% for the same time frame. The Graham &

Dodd Fund® LLC equity management business has received high accolades from a number of institutional manager ranking sources, including:

Pensions & Investments Magazine

Ranked #1 for 2010 for all separate account large cap value managers

Ranked #1 from 2005 through 2010 for all large cap value managers

Ranked #4 for 5 years ending march 31, 2012 for all large cap value managers

PSN/Informa

Graham & Dodd Fund® listed as a PSN “Top Gun" manager

Top ten large cap value managers in 2010, 2009 and 2008

eVestment/Alliance

Ranked in the top 0.15% for all large cap value equity managers in 2008

Ranked in the top 1% between 2008 through 2004

Consistently in the top percentile brackets with eVestment/Alliance

Morningstar

5 star rating from Morningstar for 2010 and the prior 5 years

4 star rating for 2011 for performance amongst 1,400 funds including mutual funds and separate account managers

The Graham & Dodd Fund® LLC and its subsidiaries maintains its MBE (minority owned business enterprise) status with both the City of New York and the State of New York. The Firm

maintains GIPS standards (global investment performance standards, formerly AIMR) and is GIPS verified by Ashland Partners LLP.

GRAHAM & DODD FUND® LLC


LLC

Confidential

FARM EXAMPLE IN MCCLEAN COUNTY ILLINOIS


LLC

Farm: McLean County1

Location: McLean County, Central IL

Farm Size: 237 acres total

Farm 1: 101.08 acres acquired Oct. 2008 Farm 2: 135.73 acres acquired Nov. 2010

Tile installed post-2012 season

Farm 1

2008 Purchase Price: $657,000 unimproved

2008 Purchase Price: $6,500/acre

Farm 2

2010 Purchase Price: $1.02 million unimproved

2010 Purchase Price: $7,500/acre

Soil Quality: 139.5 Productivity Index2

Major Soil Types: Sable, Ipava, Harpster

1 The actual properties referenced above are not and were not owned by the Graham & Dodd Farmland FundSM 1, L.P. (the “Fund”) but are representative of the strategy and methodology that the Fund seeks to pursue. Fund investor results may differ materially from those presented in this case study. Please see important disclosures on the following pages of this presentation. 2 Productivity Index: Bulletin 811, Optimum Crop Productivity Ratings for Illinois Soils, Olson, K.R. and Lang, J.M., University of Illinois, College of Agricultural, Consumer and Environmental Sciences, Office of Research, August 2000. Table S2 revised Jan 2012.

40 40

www.grainews.ca Apr. 29, 2014: Photo from Northern Plains Drainage Systems Drainage tile installation on unrelated property


Project: System Tile Drainage Installed post-2012 season 237 acres Shared Common Outlet Installed System Tile Cost Per Acre Outlet $166 Tiling $734 Total $900 Total Cost: $213,000 1 The actual properties referenced above are not and were not owned by the Graham & Dodd Farmland Fund 1, L.P. (the “Fund”) but are representative of the strategy and methodology that the Fund seeks to pursue. Fund investor results may differ materially from those presented in this case study. Please see important disclosures on the following pages of this presentation.

41

Returns Without Any GDFF Management Fee Or Incentive Fee

2009-2014 Unleveraged Leveraged

Internal Rates of Return (IRR%) 16.5% 25.4%

Management Fee on AUM = 0.00% 0.00%

Incentive Fee on Profits = 0.00% 0.00%

Brokerage Fee on Purchase = 2.00% 2.00%

Brokerage Fee on Sale = 2.00% 2.00%

Percent (%) Leverage = 0% 50%

Returns With GDFF 1.0% Management Fee And 10% Incentive Fee

2009-2014 Unleveraged Leveraged

Internal Rates of Return (IRR%) 14.1% 22.5%

Management Fee on AUM = 1.00% 1.00%

Incentive Fee on Profits = 10.00% 10.00%

Brokerage Fee on Purchase = 2.00% 2.00%

Brokerage Fee on Sale = 2.00% 2.00%

Percent (%) Leverage = 0% 50%


Annual Lease Assumptions – Farm Purchased at End of 2008 and Sold in 2014

Imputed Equivalent Crop Year Rent/acre Corn Yield2 Soybean Yield

2009 $240 196 bpa

2010 $254 150 bpa

2011 $290 185 bpa

2012 $315 63.6 bpa

2013 – post tile $400 268 bpa

2014 – post tile $380 77.0 bpa

Estimated Value Per Acre

2014 $12,200 net of applied brokerage fees

Calculated Annual IRR 3

2009 – 14 +16.5% Unleveraged

+25.4% Leveraged

Loan-To-Value 50%

bpa = bushels per acre. 1 The actual properties referenced above are not and were not owned by the Graham & Dodd Farmland FundSM 1, L.P. (the “Fund”) but are representative of the strategy and methodology that the Fund seeks to pursue. Fund investor results may differ materially from those presented in this case study. Please see important on the next page of this presentation. 2 2011 and 2013 figures represent the corn equivalent harvest in bushels per acre of seed corn. Seed corn is corn grown specifically for use by farmers as planting seed for subsequent corn crops. 3 Please see important disclosures on the following page. Past performance is not necessarily indicative of future results.

42

Farm: McLean County

Important Disclosures: The owner acquired each farm shown on pages 1-3 separately and installed drainage tile on the combined property after the 2012 crop season. The total cost of installing the common drainage outlet was shared by multiple neighboring property owners and the cost presented on page 2 is the actual cost allocated to the farm owner. The actual properties referenced above are not and were not owned by the Graham & Dodd Farmland FundSM 1, L.P. (the “Fund”) but are representative of the strategy and methodology that the Fund seeks to pursue. Fund investor results may differ materially from those presented in this case study. While the Fund may seek to invest in assets with similar characteristics to those described in this case study, prospective investors should not assume that the Fund will invest in comparable assets nor that its investments will be as profitable as those described in this case study or profitable at all. Purchase price, project cost data and crop yield information provided by property owner. Transaction data confirmed by Busey Ag Services. Current market value estimates, tax estimates, imputed farm management cost estimates and imputed rent estimates provided by Busey Ag Services. The Leveraged Results are modeled using the Unleveraged results and extrapolating from there assuming a 50% level of leverage utilized at a rate of 3.25%. Past performance is not necessarily indicative, and is no guarantee, of future results. Aerial photography and soil maps provided by Busey Ag Services. 2011 - 2014 interim market value estimates and 2009 – 2010 interim rent estimates calculated using current market values adjusted by the University of Illinois Farm Business Management Resources' Index of Illinois Farmland Values. 2014 estimated market value is net of an applied brokerage fee. IRR calculations use the combined annual cash flows from the 2008 and 2010 acquisitions as derived from the imputed rental income and associated costs, actual transaction and project data and estimated current property value, adjusted for leverage where described. Inter-period cash flows are assumed to occur on an annual basis. This is not an offer to sell any securities and is provided for informational purposes only. 43


LLC

Disclosures:

The information in this presentation is intended for information purposes only. Nothing in this presentation is intended to be, nor should it be construed or used as, financial, legal,

tax or investment advice, nor does this presentation opine as to the appropriateness or suitability of an investment in the Fund by any investor. This presentation is not, nor is intended

to be, an offer, or the solicitation of any offer, to buy or sell any security of the Fund. Such an offer or solicitation can only be made by way of the Fund’s offering documents and

otherwise in accordance with applicable securities laws.

This presentation is authorized for use when preceded or accompanied by appropriate offering documents. Please read the offering documents in their entirety before investing.

No warranty, express or implied, representation or guarantee is made as to the accuracy, validity, timeliness, completeness or suitability of the information in the presentation. Any

indexes and other financial benchmarks shown are provided for illustrative purposes only, are unmanaged, reflect reinvestment of income and dividends and do not reflect the impact

of advisory fees.

The S&P 500 Total Return index is a capitalization weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate

market value of these 500 stocks representing all major industries.

The NCREIF Farmland Index is a quarterly time series composite return measure of investment performance of a large pool of individual agricultural properties acquired in the

private market for investment purposes only.

Comparisons to indexes have limitations because indexes have volatility and other material characteristics that may differ from the portfolio of the Fund. The Fund’s performance may

differ substantially from the performance of an index, therefore indices should not be relied upon as an accurate measure of comparison.

This presentation is confidential and is intended solely for the information of the recipient to whom it has been delivered. Recipients may not reproduce these materials or deliver

them to third parties. These materials are not intended for distribution to or use by any person or entity in any jurisdiction or country where such distribution or use would be

contrary to applicable law or regulation.

Busey Ag, Services, a division of Busey Bank (parent company First Busey Corporation1) is a third party provider of farm management services to agricultural properties invested in

by the Graham & Dodd Farmland FundSM I, LP (referred to herein as the Fund). Busey Ag Services is not affiliated with the Fund, Graham & Dodd Farmland FundSM LLC or Graham

& Dodd Fund® LLC and is not offering interests in the Fund. Pursuant to a master services agreement between Busey Ag Services and Graham & Dodd Farmland FundSM LLC, Busey

Ag Services will provide certain farm management services to the Fund and assist the Fund in locating farm properties. Busey Ag Services has not contributed to or participated in the

organization, development or description of the Fund or its terms, other than its description of the services it provides to the Fund. Busey Ag Services and its affiliates will not be

responsible for any investment decisions made by the Fund.

1. First Busey Corporation is a publicly traded company listed on the NASDAQ under the symbol BUSE.

Confidential Graham & Dodd Farmland FundSM

LLC 45

Documents

GRAHAM & DODD FARMLAND FUNDSM LLC A VALUE ADDED …€¦ · The Fund targets 13% -17% non-levered annual IRRs and strong repetitive annual cash yields and will leverage up to 50%