Farmland has long been a popular investment among the wealthy, including prominent figures like Bill Gates, who reportedly owns over 240,000 acres of farmland in the United States. As an asset class, farmland has shown potential for strong returns and lower volatility compared to the stock market. But how can individual investors tap into this lucrative market?
Enter FarmTogether, a platform that aims to democratize access to farmland investments. But is FarmTogether legit, and is it worth your time and money? This article will explore the company’s background, features, and offerings to help you make an informed decision.
Learn More About FarmTogether
FarmTogether is a real estate crowdfunding platform that specializes in farmland investment opportunities. Founded in 2017 by Artem Milinchuk, the company’s mission is to provide individual investors with the ability to invest in farmland, an asset class that was previously only accessible to institutional investors and high-net-worth individuals. With a focus on sustainability, FarmTogether offers investors the chance to diversify their investment portfolios while supporting responsible and sustainable agriculture practices.
The platform provides investors with access to a variety of farmland offerings, including row crops and permanent crops, such as tree nuts and fruit trees. FarmTogether performs extensive due diligence on each investment opportunity, ensuring that investors have access to high-quality farmland investments with strong returns potential.
FarmTogether’s Value Proposition
One of the key benefits of investing in farmland through FarmTogether is the potential for stable, long-term returns. Historically, farmland has delivered average annual returns of around 10-12%, making it an attractive option for investors looking to diversify their portfolios and generate passive income. Additionally, farmland investments often provide a hedge against inflation and economic downturns, as the demand for food remains relatively stable even in challenging market conditions.
FarmTogether offers both accredited and non-accredited investors the opportunity to invest in farmland through a variety of investment structures. These include:
- Sole Ownership Bespoke: This offering allows investors with a high minimum investment to acquire full ownership of a specific farmland property. Investors can work with a farmland investment manager to customize their investment based on factors such as crop type, location, and management structure.
- Sustainable Farmland Fund: This fund provides investors with a more diversified farmland investment, spreading their investment across multiple properties and crop types. The focus of the fund is on sustainable agriculture practices, making it an appealing option for environmentally-conscious investors.
- Crowdfunding Product: For those with lower investment minimums, FarmTogether offers crowdfunding investment opportunities in specific farmland properties. Investors pool their funds to acquire a stake in a single property, benefiting from economies of scale and shared ownership.
Fees and Minimum Investment
FarmTogether’s fee structure varies depending on the type of investment. For bespoke offerings, investors typically pay a one-time fee for the acquisition and an annual management fee based on the property’s operating income. Crowdfunding investments may include a one-time fee and an annual management fee, as well as a potential performance-based fee.
Minimum investment amounts for FarmTogether offerings can range from as low as $10,000 for crowdfunding investments to significantly higher amounts for bespoke offerings. This flexibility allows investors with varying levels of capital to participate in farmland investments through the platform.
FarmTogether’s Platform Features
FarmTogether’s platform provides investors with a user-friendly experience, offering a wealth of information and resources to help them make informed decisions about their farmland investments. Some notable features include:
- Diligence Materials: Investors have access to extensive diligence materials for each investment opportunity, including legal documents, financial projections, and white papers on agricultural practices and market trends.
- Investment Size Calculator: This tool helps investors determine their ideal investment size based on factors such as risk tolerance, investment goals, and time horizon.
- Water Rights: FarmTogether recognizes the importance of water rights in farmland investments and provides detailed information on water access and usage for each property.
- Self-Directed IRAs: The platform allows investors to invest in farmland using self-directed IRAs, enabling them to potentially benefit from tax advantages while diversifying their retirement portfolios.
- Transparent Management Structure: FarmTogether provides clear information on the management structure for each investment, helping investors understand the roles and responsibilities of all parties involved, including lease agreements and the relationship between the platform, farmers, and property managers.
Final Thoughts – Is FarmTogether Legit?
For investors seeking to diversify their portfolios and tap into the stable, long-term returns potential of farmland investments, FarmTogether is worth considering. The platform’s focus on sustainability and its thorough due diligence process helps ensure that investors have access to high-quality farmland investment opportunities.
The range of investment structures available, from sole ownership bespoke offerings to crowdfunding investments, allows investors of varying capital levels to participate in this historically lucrative asset class. The user-friendly platform and comprehensive resources provided by FarmTogether enable investors to make informed decisions about their farmland investments and monitor their performance over time.
FarmTogether is a legit and valuable platform for those looking to invest in farmland. With its focus on sustainability, transparency, and providing a wide range of investment options, FarmTogether is worth exploring for investors seeking to diversify their portfolios and potentially benefit from the strong returns historically associated with farmland investments. Click here to get started today!