FarmTogether Review 2023
|By: Jeremy Biberdorf||Mar 15, 2023|
In a nutshell: FarmTogether is an online platform that offers crowdfunded real estate investing. With FarmTogether, however, as you might have guessed from the name, that real estate is US farmland.
FarmTogether allows investors to take a page out of the ultra-wealthy playbook and invest in agriculture. This alternative investment allows you to diversify your portfolio and sit back and collect slow and steady returns.
Keep reading for our comprehensive FarmTogether review, which will cover what it is, how it works, and its top features.
|Admin Fees | 1-2%||Annual Management Fees | 1-2%||Acquisition Fee | 2%||Net Operating Income | 5%|
Note: Fees vary per investment, and not all of the above fees apply to each investment
- A relatively simple way to invest in farmland
- Multiple investment opportunities
- Portfolio diversification
- For accredited investors only
- Variable fees make calculating costs somewhat difficult
- Not necessarily better than investing in a publicly traded farmland REIT
FarmTogether Review 2023 | Is FarmTogether Right for Me?
Bill Gates has made waves in recent years for his acquisition of huge quantities of US farmland. Whether or not you’re a fan of Gates, it’s likely a smart move. After all, farmland has long been a sound alternative investment. It has historically provided stable returns, and it’s not correlated with the stock market. This makes it a great way to diversify your portfolio while also collecting passive income.
The average investor, however, does not have Bill Gates’ wallet. So buying property outright is likely out of the question. This is where a platform like FarmTogether comes in. (That said, they are currently only open to accredited investors, somewhat defeating the purpose.) FarmTogether owns farmland that investors can add to their portfolio in three different ways, which we’ll cover below.
Keep reading to learn more about how FarmTogether works and whether it might be right for your portfolio.
How Does FarmTogether Work?
FarmTogether offers three unique ways for people to invest in farmland.
- Crowdfunded offerings – Under this model, investors purchase fractional shares of farmland.
- Bespoke offerings – This entails investors becoming sole owners of a given farmland property.
- Sustainable Farmland Fund – This is FarmTogether’s own fund, which allows investors to acquire a diversified farmland portfolio through a single allocation.
Regardless of the option (or options) you pick, FarmTogether is all about allowing people to invest directly in real estate. The crowdfunding platform entails investing in LLCs managed by FarmTogether. The way this works is much the same as a crowdfunding real estate platform (such as Fundrise, to name one popular one).
Investors using Farmland will make money both through cash distributions (i.e. dividends) and through appreciation of the land. Dividends are paid out either quarterly or annually (it varies based on the property). Land appreciation is only factored in at the time of a sale.FarmTogether claims that farmland historically has less volatility and better returns than stocks, bonds, or real estate. All in all, the platform enables you to reap the benefits of farmland investing without any of the hassles of purchasing or managing properties yourself.
Of course, FarmTogether has to make money itself, which is why it uses a fee structure. We’ll cover that more down below.
Silver Gold Bull provides various notable features that help set it apart from other online precious metals dealers, including the following:
- Multiple ways to invest – With three ways to invest, FarmTogether offers a degree of versatility that’s not often seen with crowdfunded real estate investment platforms. There are crowdfunded investments (fractional ownership), outright ownership possibilities, as well as the ability to invest in a diversified fund.
- Investment calculator – When you browse investment opportunities on FarmTogether, you can use an investment calculator to estimate your returns based on different investment amounts. This is a great tool that saves you from opening up your own calculator and doing the math yourself.
- Easy signup process – Some sites make it a pain to sign up, but not FarmTogether. You can open an account and invest in a matter of minutes.
- Intuitive platform – FarmTogether offers a large number of investment opportunities. Fortunately, they make it a breeze to browse them, with a range of filters, such as crop, investment size, and more.
- Learning center – FarmTogether recently launched its own Learning Center, which provides helpful resources for understanding farmland investing, including investment overviews, whitepapers, blog posts, webinars, a podcast, and more.
FarmTogether Fees & Plans
First off, you should know that FarmTogether is currently limited to accredited investors. This is a bit disappointing since the idea of crowdfunding is to make investing more accessible.
FarmTogether’s fees are complicated, to be perfectly honest. They vary widely based on the type of investment (crowdfunded, sole ownership, or the Sustainable Farmland Fund).
Their website notes that fees are “dependent on product offering,” but that there’s a 1-2% one-time admin fee, a 1-2% annual management fee, and a 5% net operating income fee.
You’ll have to read carefully before investing to ensure you understand the fee structure of the investment in question.
Is FarmTogether Worth It?
FarmTogether is a solid option for accredited investors looking for an easy way to invest directly in U.S. farmland. For non-accredited investors, it’s not currently accessible.
To check out FarmTogether for yourself, click here to see how it aligns with what you’re looking for in a crowdfunded investment platform.