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Broker Price Opinion OWNER: ACRES: LOCATION: SHIMOTA FAMILY 257.36 Acres, m/l Sibley County, MN LLP Geoff Mead, ALC 507-345-5263 Licensed in MN 151 St. Andrews Ct #1310 [email protected] Mankato, MN 56001 www.Hertz.ag

Broker Price Opinion OWNER: ACRES: LOCATION: SHIMOTA FAMILY 257.36 Acres, m/l Sibley County, MN LLP Shimota Family Farms LLP Located in: Washington Lake Township Sibley County, MN Prepared for: Shimota Family LLP. 36258 200 St. Green Isle, MN 55338 Prepared by: Geoff Mead, ALC Licensed in MN 151 St. Andrews Ct #1310 Mankato MN 56001 Geoff Mead, ALC 507-345-5263 Licensed in MN 151 St. Andrews Ct #1310 [email protected] Mankato, MN 56001 www.Hertz.ag

Summation of Opinion 257.36 Acres, m/l, Sibley County, MN May 11, 2022 Shimota Family LLP. 36258 200 St. Green Isle, MN 55338 RE: 257 Acres, +/-, Sibley County, Minnesota Dear Shimota Family LLP. Thank you for the opportunity to evaluate and share our thoughts on your farms in Sibley County, MN which, contain approximately 257 acres, +/- in four tax parcels. The farms consist of an estimated 185.83 effective crop acres, +/-, and 51.75 CRP acres, +/-, with a Crop Productivity Index (CPI) of 91-94 per AgriData, Inc. measurements. Based on FSA records, there is a Farmable Wetland (FW) present within one of the CRP tracts and the wetland determination does not appear to be certified at this time. We can discuss the potential relevance of these factors at a later date. Based upon comparable sales, and our experience in agricultural land sales, we believe a reasonable range of Market Value on the farms as of May 11, 2022 is: Range of Market Value 185.83 Tillable Acres: $10,500 - $12,000 + per acre 51.75 CRP acre: $7,500-$8,500 per acre 20 Non-Tillable Acres: $1,000 per acre Total Estimated Price Range: $2,404,340 to $2,689,835 **Please Note: The CRP acres were implemented because those acres are struggling with drainage issues which are not easily resolved. In this case, you have an open ditch which is overloaded after frequent heavy rains. Adding tile will have minimal effect because the ditch is backed up for multiple reasons. Adding a lift station is one possible solution, however it adds a lot of expense and some complication to farming. The drainage issues combined with the need to buy the CRP contract back are why these acres could carry lower value. While we could certainly tell you the CRP acres are worth slightly less than the rest of your tillable acres, most farmers and wise investors will have done their homework. Our goal is to explain what we see based on our extensive knowledge in farmland sales across Southern Minnesota. In fact, we have sold over 975 acres in very close proximity to your farms within the last 9 months. We believe the CRP contract is only one year into existence, in which case it could be bought out for minimal expense as compared to being years into the contract. For this reason, we valued the CRP acres slightly below where we would value acres which are struggling with drainage yet have quality soils such as yours. We would appreciate the ability to discuss this with you in further detail if there are questions or concerns. The good news is that our auction process will allow the market to pay the absolute maximum for every acre of your farm. Geoff Mead, ALC 507-345-5263 Licensed in MN 151 St. Andrews Ct #1310 [email protected] Mankato, MN 56001 www.Hertz.ag

Summation of Opinion 257.36 Acres, m/l, Sibley County, MN It is our recommendation to sell your farms using a Multi-Parcel Auction process in which bidders will have the opportunity to bid on any or all of the parcels offered. Given the configuration of your farms, we would like to discuss with you a few different options to be considered in order to maximize the price received per acre. In some scenarios, your LLP would need to survey the properties which could result in higher prices paid per parcel. However, if this is not an attractive offer, we can provide other options that will not require a survey. Nonetheless, you should fully understand all options before moving ahead. Our fees in an auction setting such as this would be as follows: Seller’s Fee 1% & Buyer’s Fee 2% . Buyers are well accustomed to paying Buyer’s Fees in farmland auctions. We believe charging a minimal fee to Buyers such as our 2% fee results in minimal to no effect on the price Buyers are willing to pay. We have been using this method successfully in this specific market for decades and achieving top of the market results. We are happy to discuss this further if there are questions. We cannot overstate the importance of choosing a Broker with the knowledge, experience, and capability to effectively organize and implement an auction designed specifically for your property. In addition, your sale must be effectively marketed through every possible channel. The combination of these factors can have a profound effect on the outcome of your auction. We believe we are unmatched in our ability to provide you this service and do so with no additional fees. Please see an explanation of marketing at the end of this proposal. Finally, we realize we could inflate our valuation in this fast-moving market. However, we trust our knowledge and experience based on consistent results in your market and across southern and central Minnesota. Our valuation doesn't guarantee a price and our goal is to exceed expectations, if at all possible. We will give your farms every chance to achieve the highest price the market will bear. We are simply stating reasonable expectations at this time. We invite you to call a few local references if you feel you’d like to discuss their experience with our brokerage. Please see their contact information. Sibley County References: Pete Buckentine 612-723-2938 and Bill Mathwig 612-532-5762 Thank you for your interest in Hertz Farm Management MN. Sincerely, Geoff Mead Licensed MN Real Estate Salesperson, Accredited Land Consultant (ALC) Email: [email protected] Direct: 218-232-2561/ Office: 507-246-0905 Geoff Mead, ALC 507-345-5263 Licensed in MN 151 St. Andrews Ct #1310 [email protected] Mankato, MN 56001 www.Hertz.ag

Plat Map 257.36 Acres, m/l, Sibley County, MN 16 61 61 11 SUBJECT 16 5 64 Map reproduced with permission of Farm & Home Publishers, Ltd. Geoff Mead, ALC 507-345-5263 Licensed in MN 151 St. Andrews Ct #1310 [email protected] Mankato, MN 56001 www.Hertz.ag

FSA Map 237.58 Acres, m/l Geoff Mead, ALC 507-345-5263 Licensed in MN 151 St. Andrews Ct #1310 [email protected] Mankato, MN 56001 www.Hertz.ag

Aerial Photo 257.36 Acres FSA/Eff. Crop Acres: 237.58 Corn Base: 92.91 Bean Base: 92.92 CRP Acres: 51.75 Soil Productivity: 91.60 CPI *FSA/Eff. Crop Acres are Estimated Property Information Lease Status Land Description 257.36 Acres, m/l Leased through 2022 Crop Year Level to rolling. Legal Description FSA Data Drainage N½ of NE¼ exc. 0.77ac Surv. 1375 & S½ Farm Number #8220, Tract #10172 Private Tile with outlet to CD-39 and CD- of SE¼ exc. 9.51ac & exc. 0.58ac Surv. FSA/Eff. Crop Acres: 237.58 1. The two watersheds split the farms. 1612 & S½ of SW¼ exc. 46.42ac Surv. Corn Base: 92.91 1612 & N½ of NW¼ exc. E 2.00ac & exc. Corn PLC Yield: 153.00 Bu. Buildings/Improvements 3.36ac Surv. 1375 in Section 19,20,29,30 Bean Base: 92.92 None. Township 114 North, Range 26 West of Bean PLC Yield: 43.00 Bu. the 5th P.M., Sibley County, MN. NRCS Classification Soil Types/Productivity NHEL: Non-Highly Erodible Land. Real Estate Tax Main soil types are Cordova clay loam, Le Tract contains a wetland or farmable 2022 Taxes Sueur loam, and Le Sueur-Reedslake- wetland. Ag Non-Hmstd Taxes: $12,606.00 Cordova complex. Crop Productivity Comments Special Assessments: $1,784.50 Index (CPI) on the FSA/Eff. Crop acres is High quality soils across entire farm. Net Taxable Acres: 257.36 91.60. See soil map for details. Some drainage issues have been addressed Tax per Net Taxable Acre: $48.98 with CRP implementation. Drainage will CRP Contracts be difficult to improve but land drains 51.75 acres are currently enrolled in CRP. well apart from the CRP acres. Geoff Mead, ALC 507-345-5263 Licensed in MN 151 St. Andrews Ct #1310 [email protected] Mankato, MN 56001 www.Hertz.ag

Soil Map FSA/Eff. Crop Acres - 237.58 The information gathered for this brochure is from sources deemed reliable, but cannot be guaranteed by Hertz Real Estate Services or its staff. All acres are considered more or less, unless otherwise stated. All property boundaries are approximate. Soil productivity ratings are based on the information currently available in the USDA/NRCS soil survey database. Those numbers are subject to change on an annual basis. Geoff Mead, ALC 507-345-5263 Licensed in MN 151 St. Andrews Ct #1310 [email protected] Mankato, MN 56001 www.Hertz.ag

Auction Marketing Plan Preparation for Market Market Exposure Plan Auction Day • We will compile property • Our staff in offices across • Our staff will set up the auction information including, but not Iowa, Illinois, Minnesota and site the day of the auction with limited to, aerials, location Nebraska will personally brochures, flyers and property maps, past production history, contact prospects and investors. information. soil maps, improvements, etc. • A direct mail campaign will be • We will have several Hertz • We’ll select a site that provides sent via first class mail to representatives available, an environment conducive to an neighbors and ag-businesses including the auctioneer, to auction and is easily accessible. within a 20-30 mile radius of help conduct the sale and • Our staff will develop property the farm. answer questions about the brochure(s) for distribution to • Advertising will be scheduled property prior to identified prospects and for a minimum of three issues commencement of the auction. marketing websites. in local area shoppers and • Real Estate Sales Agreements • We will identify potential newspapers. Advertising in the will be prepared prior to prospects & develop mailing regional newspaper and/or farm auction day to be reviewed by lists for direct mailings. publication advertising will Seller, and final Sales • We’ll develop advertising/ take place as appropriate. Agreements will be available marketing copy and schedules. • Local Establishment Flyers for use upon conclusion of the • The farm may be flown with a • Our staff will place and auction. UAV (Unmanned Aerial maintain “AUCTION” signs on Closing Vehicle) for high resolution the property. We will supervise closing photos and videos. • Radio Advertising on Linder activities, including: Communication Media—36 Radio Stations! • Handling receipt and • We will communicate regularly • 24 Different Land Sale disbursement of funds through with you regarding progress Websites our real estate brokerage trust toward sale, ongoing • Property and auction account. advertising efforts and current information will be uploaded to • Helping resolve any title market status. the Hertz website objections raised by the Advantages of Auctions (www.Hertz.ag) as well as six Buyer’s attorney. • No ceiling price national Multiple Listing • Working with your attorney, or • Create excitement and Service websites: a local attorney, to prepare the competitive bidding www.RLIFarmandRanch.com title transfer documents. • Intense marketing and www.LandsofAmerica.com advertising spotlight your farm www.LandandFarm.com • Seller sets the terms of the sale, www.LandBlueBook.com auction date and time www.LandWatch.com • Buyer must follow Seller’s www.AuctionZip.com terms • Auctions are fair to all parties involved (Buyer & Seller) • Cash sale Geoff Mead, ALC 507-345-5263 Licensed in MN 151 St. Andrews Ct #1310 [email protected] Mankato, MN 56001 www.Hertz.ag

Take Advantage of Complete Real Estate Services Will your real estate listing agent represent you in a Direct Mail targeted to neighborhood farm opera- way that serves your best interests? It’s important to tors, absentee landowners, area ag-businesses and remember that not all agents are equally able to advise banks, as well as other prospect lists we develop to you when your farmland is at stake. market our exclusive listings and auctions. Farmland property sales, auctions, acquisitions and Tax Deferred Exchanges, working with clients to exchanges are a team effort. Hertz Real Estate Ser- complete IRS 1031 Tax Free Exchanges. We can as- vices/ Hertz Farm Management offers the expertise of sist your attorney or accountant in putting together real estate agents licensed in every state we serve. the exchange and coordinate the process. These agents specialize in the sale, acquisition, ap- praisal and management of farmland and provide the Auction Services including multiple parcel auctions to kind of advice and assistance essential to a successful provide superior results. We help owners analyze their transaction. situation and property when making this marketing deci- sion. A Hertz agent is your partner, representing you and working with you to realize the greatest net return on Farmland Real Estate Professional to determine the your property. Your agent will customize the selling value of your property. Hertz agents understand the ag approach to your property, using a variety of tools, real estate market and farming. They have the ag real including: estate experience necessary to help you receive the fair market value from your farm property. Brochures with a location map, real estate tax infor- mation, FSA aerial photo and farm payment data, de- Closing, helping you meet title requirements and com- tailed soil map and other pertinent information. plete all standard forms, such as the Declaration of Value and Groundwater Hazard Statement. We routinely close For Sale Sign so interested parties can confirm the our sales as part of our services at no extra cost. location of the property and to reinforce its availability for sale. Hertz agents understand that your farmland holds not only financial but also personal value. Because they Advertising in local, regional and state newspapers for recognize the importance of your relationship with your the greatest exposure to potential buyers. land, they are in a unique position to offer the objective guidance you need to make the best decisions for you Online Listing Services to give the public access to and your family. your listing and allow cooperation with other brokers. We are members of the REALTORS® Land Institute’s Our agents combine a personal approach with exceptional Farm and Ranch Multiple Listing Service, which pro- expertise and have become trusted advisors to our cus- vides information on farm listings to cooperating bro- tomers since 1946. We invite you to become another satis- ker members nationwide. All of our listings also ap- fied Hertz customer. Visit our Web site or call us today to pear on our Hertz web site at www.Hertz.ag. learn how we can work with you 507.345.5263 www.Hertz.ag 5/22/2020

Understanding the 1031 Tax Free Exchange and Capital Gains Deferral Did you know that Internal Revenue Code Section 1031 Non-Safe-Harbor Strawman or Build-to-Suit: At allows you to defer capital gains taxes on the sale of times, improvement exchanges cannot be completed property held for investment or productive use in a trade within 180 days. For such occasions, a 1031 exchange or business? can be structured outside the safe-harbor provisions of To take advantage of the 1031 Tax Free Exchange, you 1031 and still qualify for 1031 treatment. A third party need an independent third-party qualified intermediary. must take actual title to the property and have a beneficial You may select your intermediary from among several and significant interest in the transaction. options, as long as you don’t choose yourself, a relative, What Kind of Property Qualifies for a 1031 your agent or your attorney, accountant or real estate Exchange? broker. We suggest selecting your intermediary based Real Almost all kinds of real estate are on security, service, experience and price. classified as like-kind to each other. As long as a piece of Several kinds of exchanges are available, including: real prop- erty is used for investment or in a business, it Delayed: Using the services of a qualified intermediary, will qualify for 1031 treatment. Rental properties, farms, you first sell relinquished property and subsequently ranches are examples of real properties that can be acquire replacement property. Subject to certain rules, exchanged for one another and properties leased for 30 you have up to 180 days from the transfer of the years or more. relinquished property to acquire replacement property. Personal Property: Personal property can be exchanged Reverse: Using the services of a qualified intermediary using 1031 as long as it is used for investment or in a and an exchange accommodation titleholder (EAT), you trade or business and is traded for like-kind property. This acquire replacement property before disposing of may become an issue when businesses or apartment relinquished property. The EAT must take title to the complexes are traded and items of personal property replacement property until the relinquished property is (stoves, washers, dryers, refrigerators, etc.) exceed 15 sold. You benefit from a reverse exchange when you percent of the underlying real estate’s value. must purchase the re- placement property before selling Why Choose a 1031 Exchange? the relinquished property. The transaction must be The principal advantage of a 1031 exchange is the ability completed within 180 days. to use the entire equity of your property to acquire Improvement: To construct improvements on replacement property. The tax consequences of selling replacement property, using relinquished property property are taken out of the equation and you are free to proceeds on deposit with a qualified intermediary, you move equity into more lucrative or appropriate can structure the transaction as an improvement investments. exchange. Improvement exchanges are similar to reverse Specific reasons for using 1031 include: Consolidation exchanges in that an EAT must take actual title to the or You might want to decrease the replacement property while it is under construction. number of properties you hold by exchanging out of Again, the transaction must be completed within 180- multiple relinquished properties into fewer or a days. single replacement property. This action could reduce managerial and maintenance burdens. Alternatively, you 507.345.5263 www.Hertz.ag 5/22/2020

Understanding the 1031 Tax Free Exchange and Capital Gains Deferral might exchange out of one high-value property into The 95% Rule: The Exchanger may identify any number multiple properties to limit investment exposure, of properties, without regard to their value, provided the diversify holdings or increase cash flow. Exchanger acquires 95percent of the fair market value of Relocation of Investment: If you relocate from one those properties. part of the country to another, you can use 1031 to Other points to remember: move real property investments to your new location • To avoid all taxable gain you must buy a property of and avoid payment of capital gains tax. Stepped-up Basis for Heirs: If you have used 1031 to equal or greater value than the property. If you purchase defer taxable gain, your heirs will acquire the property a property of lesser value, you will be taxed on the on a stepped-up basis. Your heirs’ basis equals the fair difference. market value (FMV) of the property at the time of your • You must also use all the cash proceeds from the sale on death and your heirs will pay no tax to the extent the your purchase to completely defer the applicable capital sale price does not exceed the value declared in the gains tax. If you do not use all your proceeds on the estate. purchase, you will be taxed on the difference. What Are the 1031 Timeframes (Deadlines)? • You must place an equal amount of debt on the Forty-Five Day Identification Rule: You have 45 days replacement property as was in place on the from the closing of the relinquished property(ies) to relinquished property. identify your potential replacement property(ies). You • The above information should be considered general can identify any property or properties, subject to the guidelines. It is very important that you work with a Rules of Identification. You must have the knowledgeable attorney and/or tax accountant and real documentation to your qualified intermediary on or estate professional when considering the sale of real before the 45th day. You do not have to have the estate and/or a 1031 Exchange. identified property(ies) under contract to identify them. Hertz Real Estate Services/Hertz Farm Management 180-day Exchange Period Rule: You have 180 days agents understand that your farmland holds not only from the closing of your relinquished property(ies) to financial but also personal value. Because they recognize close on the purchase of your replacement property the importance of your relationship with your land, they (ies). are in a unique position to offer the objective guidance What are the Rules of Identification? you need to make the best decisions for you and your The Three Property Rule: The Exchanger may family. identify up to three properties without regard to their Our agents combine a personal approach with exceptional value. expertise and have become trusted advisors to our clients The 200% Rule: The Exchanger may identify more since 1946. We invite you to become another satisfied than three properties, provided their combined fair Hertz client. Visit our Web site or call us today to learn market value does not exceed 200% of the value of the how we can assist you. property sold. 507.345.5263 www.Hertz.ag 5/22/2020

Make the Most of Your Farmland Investment • Real Estate Sales and Auctions • Professional Buyer Representation • Certified Farm Appraisals • Professional Farm Management Geoff Mead, ALC 507-345-5263 Licensed in MN 151 St. Andrews Ct #1310 [email protected] Mankato, MN 56001 www.Hertz.ag