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Bottom Line: Diversify your portfolio by investing in U.S. farmland with FarmTogether. It allows you to increase your passive income, while owning an asset.
AT A GLANCE
- Average returns up to 13%
- Only takes several minutes to invest
- Earn passive income
- Platform offers lots of investing options
Best Farmland Investment Platform
Pros & Cons
David Perez, one of FarmTogether’s investment associates, suggests investing in farmland because farmland “is a real asset, it’s tangible … it’s the oldest type of asset there is.”
Owning farmland is one of the oldest ways to make money. After all, eating will never go out of style.
FarmTogether is a crowdfunded farmland investment platform that helps connect farm operators with farmland investors.
Are you wondering what owning farmland might be like? I didn’t need to know anything about farming, trade in my day clothes for overalls, or switch out my sports car for a tractor to become a farmland investor.
All farms need is your monetary investment.
Why invest in farmland? This FarmTogether review will help you understand what FarmTogether does, farmland investment pros and cons, what they offer, fee breakdowns, and how to open an account with them.
Investment Minimum: $15,000
Average Returns: 7% up to 13%
Promotion: No current promos
What Is FarmTogether?
FarmTogether is a crowdfunding platform that specializes in farmland real estate. FarmTogether does all the legwork to find sound farmlands for investment, and you won’t have to worry about farm management either.
FarmTogether’s online platform allows you to browse fully-vetted farmland investment opportunities, review all related due diligence materials, and sign legal documents related to your investment property.
Investing in farmland feels much more personal than other investments because you have full control over selecting the farmland, location, and type of crops. You might already recognize some of the farm brands your money could support.FarmTogether only works with experienced operators. For example, FarmTogether helped Galaxy Organic Apple Orchard secure $14.1 million in investments to create a sustainable and mature property so you can enjoy more of their Cosmic Crisp® and SweeTango® apples.
What Do They Offer?
You can either share farmland ownership or invest enough to buy the whole farm as a sole owner.
- $10,000 is enough to make a farmland investment if you’re an accredited investor
- Improved returns may occur from Farm Together leverage
- 5-year minimum hold periods
- 1031 Exchange ineligible
- Simple and low fees throughout your investment
- Annual liquidity windows allow for earlier investment exits
Sole Ownership Bespoke
- A $1 million+ investment can allow you sole ownership of a farmland property.
- Fully customizable capital, tax, and legal structures are available.
- Investor discretion applies to hold periods, risk-return profile, and cash-yield profile.
- 1031 Exchange eligible
- Custom fees correspond to the deal structure.
FarmTogether’s fees vary for every deal and are listed on each specific farmland investment page. However, you can typically expect to pay a 1% upfront fee and a 1% ongoing annual management fee.
I’m sure you still have a few questions.
FarmTogether is a legitimate company with numerous partners. The founder and CEO, Artem Milinchuk, has been a Forbes Finance Council member since 2019. He has 10+ years of experience with farmland and agriculture and has had various investment-related positions.
Farmland is a good investment because it steadily generates a reliable income.Farmland investment yields higher returns than most traditional investment portfolios. According to FarmTogether research, farmland has averaged 10% in returns to investors between 1992 and 2018.
The NCREIF farmland index has only had one negative year since 1991.
After you make a farmland investment, you will receive returns from your farmland’s price appreciation at the end of the hold period.
You will get a lease payout on a quarterly, semi-annual, or annual basis directly into your bank account. This amount is based on the yearly negotiated lease amount, and you can track the amounts and date on the online platformIf FarmTogether decides to sell the property down the line, you will get a share of capital gains from the sale.
FarmTogether vs. AcreTrader
How Do I Open an Account?
1. To invest, you must be accredited investor. You can be a credited investor if you earned more than $200,000 (or $300,000 with a spouse) in the previous two years with expectations for the same in the current year.
Alternatively, you’re eligible to be a credited investor if you have a net worth of over $1 million (alone or with a spouse and excluding your primary residence).
If you’re a non-credited investor, keep FarmTogether in mind for future investment, as they’re working on ways to open up investments in the future for you.
2. Set up a FarmTogether account to make your first investment. You can do this by clicking the “Sign Up” button on FarmTogether’s home page.
3. Complete your investor profile.
4. Make your first investment.
In this FarmTogether review, I’ve explained why investing in farmland through FarmTogether is a good idea and some of the drawbacks, along with explaining what choices you have, what fees to expect, and how to open up an account.
I like that FarmTogether finds the best farmland and manages it for me, so all I have to do is draw paychecks. I feel safe with my investment, knowing that food and farmland are in demand and that farmland is scarce and protected from inflation.
If you’re ready to start seeing those 10% returns, set up a FarmTogether account today and look around for a farm that needs investment.
Take control, diversify your portfolio, and increase your passive income by investing in farmland with FarmTogether’s all-in-one investment platform.
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