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Investing in Sustainable Agriculture with FarmTogether

Farmland Investment with FarmTogether: Making an Impactful Investment in Sustainable Agriculture

As the world grapples with climate change and the impact of human activities on the environment, there is an increasing interest in sustainable investments. One area that has gained traction in recent years is farmland investment.

A farmland investment offers a unique opportunity to invest in a tangible asset that is essential to our society’s food supply while helping to promote sustainable agricultural practices. FarmTogether is a farmland investment manager that has embraced the use of technology to provide investors with access to farmland opportunities that were previously reserved for institutional investors.

In this article, we will explore what FarmTogether is, how it works, the fees charged, account management, and educational resources. We will also delve into the farmland investment process, including investment amounts, valuation, and liquidity.

Finally, well conclude with a comprehensive list of the pros and cons of farmland investment with FarmTogether. What is FarmTogether?

FarmTogether is a fintech platform that provides farmland investments to accredited investors. The platform allows investors to purchase fractional shares of farmland assets such as permanent crops or row crops as part of a Limited Liability Company (LLC) or a Real Estate Investment Trust (REIT).

How FarmTogether Works

FarmTogether gives investors the chance to crowdfund ownership of farms and receive a share of the income generated by the farm’s crops. Investors can invest in LLC or REIT structures, with minimum investment amounts typically starting from $10,000.

On average, the hold period of the investment is around seven to ten years, which allows the investor to receive capital gains when the property is sold.

Fee Structure

Fees charged by FarmTogether include a one-time fee and an annual management fee of 1%-2% of the investable assets. There is also a percentage of annual profits charged by the platform, which ranges from 10%-20%.

Account Management

FarmTogether provides investors with an online portal and mobile app, making it easy to manage your investment portfolio. The platform also provides important legal documents and allows investors to track the performance of their investment.

Educational Resources

FarmTogether offers a learning center on its website, which offers educational resources and guidance on farmland investment and alternative assets. The resource center includes information on sustainable farming practices, market trends, and other related topics.

Sustainable Farming Investment

FarmTogether focuses on sustainable farming practices that preserve natural resources, promote soil health, and improve yields. The platform has adopted the Leading Harvest Farmland Management Standard, which is a set of best practices developed by leading agricultural organizations.

Investment Amount

The minimum investment amount typically ranges from $10,000 to $50,000, depending on the farm and asset type. Investors also have the option to invest in an entire farm, which is priced at millions of dollars.

Valuation and Liquidity

Farmland is an illiquid asset and typically challenging to value. Prices may fluctuate based on supply and demand, environmental factors, and other macro-level factors.

Property Selection Process

FarmTogether uses data-driven decision-making to select the farms it invests in, looking at factors such as climate suitability, soil type, water availability, infrastructure, proximity to markets, and more. The platform follows a rigorous due diligence checklist to help identify farms that have the potential for sustainable farming opportunities, with various farmland management approaches.

Pros and Cons

Farmland investment with FarmTogether offers several benefits, including diversification, passive income, and the opportunity to support sustainable agriculture practices. However, it is restricted mainly to accredited investors, and the liquidity of the investment can be limited.

Tracking the value of real estate investments may also prove challenging for individual investors. In conclusion, farmland investment with FarmTogether offers investors an opportunity to make impactful investments in sustainable agriculture, helping to preserve natural resources while generating returns on investment.

By partnering with FarmTogether, investors can gain access to a range of farms that uphold best practices in sustainable farming, helping to make the world a better place.

Eligibility and

Investment Returns with FarmTogether

Farmland investment is an appealing alternative investment option that is ideal for investors interested in diversifying their portfolios and allocating capital toward sustainable agriculture practices. Although farmland investment was previously only accessible to institutional investors, FarmTogether now offers accredited investors the opportunity to invest in farmland with contributions as low as $10,000.

This article will explore the eligibility requirements for investing in FarmTogether and the potential investment returns.

Eligibility

Investment opportunities with FarmTogether are only available to accredited investors. To meet the criteria for accreditation, an investor must have an annual income of at least $200,000, $300,000 in combined annual income with a spouse, or a net worth of over $1 million, excluding primary residence.

Additionally, investors may become accredited by earning a professional certification, such as the Series 7 or CPA. However, earning a professional certification does not apply to all investment deals, and investors must verify certification eligibility.

FarmTogether verifies investors’ eligibility by verifying their documents and checking their credentials to prevent fraudulent and unauthorized accounts. In line with securities laws, the platform uses third-party verification services, such as Nasdaq, to perform anti-fraud scans.

Investment Returns

One of the most compelling reasons for investing in farmland is the opportunity for passive income generated from harvests or rental payments and potential capital gains upon sale. With FarmTogether, investors may participate in farmland investments that produce income from the paddocks, rental payments, and management contracts.

Returns may come from permanent crops like timber, almonds, and grapes, which typically produce returns on a regular basis, or from row crops such as corn and soybeans that earn a higher share of profit when sold. FarmTogether provides investors with an estimate of the potential cash flow returns and appreciation of their investments for up to ten years in the future.

The projected returns factor in expected crop prices and income from rent, among other variables, to offer a realistic view of potential income. While projections are not guaranteed, they offer investors the information necessary to make informed decisions.

Apart from cash flow returns, farmland investment also carries opportunities for maximizing capital gains. The capital gains are realized when an investor liquidates their investment.

Capitally gains can be realized through an increased valuation of the property or when a buyer purchases the property at a higher price than the investor’s purchase price. FarmTogether also provides investors with an estimate of the net internal rate of return (IRR), which determines the rate at which the investment will grow over time.

The IRR considers the expected timeline of cash flows and incorporates the reinvestment of earnings back into the investment over time, providing a holistic perspective on potential investment outcomes.

Similar Investment Platforms

Several investment platforms offer comparable investment opportunities to FarmTogether. Here are two examples:

Fundrise

Fundrise is an online real estate investment platform that enables investors to purchase institutional-grade commercial real estate properties with minimum investments and fractional shares. The platform uses electronic registration to validate investors’ accreditation status, allowing non-accredited investors in some of the deals.

Fundrise’s low fees on crowdfunding investments offers investors access to a more significant share of investment returns by reducing management fees and providing investment options typically available to institutional investors only.

Public

Public is an investment platform that takes a more social approach to investing. The platform offers commission-free trading that provides fractional shares of individual securities, including company stocks and ETFs.

Public also offers collectibles and alternative investments in areas such as art, real estate, start-ups, and more.

The community aspect of

Public lets users engage in social trading, allowing them to discuss market trends, investments, and ideas with other users of the platform, amplifying the information available to users. In conclusion, farmland investment with FarmTogether offers accredited investors a chance to invest in a tangible asset that promotes sustainable practices while providing potential investment returns.

Eligibility standards require that investors meet accreditation criteria such as net worth and annual income, and the platform offers projected returns and net IRR estimates to assist investors in making informed decisions. While there are alternative investment platforms offering similar opportunities, FarmTogether provides a unique take on farmland investment while creating an impact on the agricultural sector.

Farmland investment with FarmTogether offers investors an opportunity to make a significant impact on sustainable agriculture while diversifying their portfolio and generating potential investment returns. With minimum investment amounts starting at $10,000 and projected returns over an estimated ten-year period, the platform uses data-driven decision-making to select farms that pursue sustainable farming practices.

Although farmland investment is mainly available to accredited investors, alternative investment platforms such as

Fundrise and

Public offer fractional investments and sustainable alternatives for investors looking for opportunities beyond conventional real estate and stock investments. With FarmTogether, investors can support sustainable agricultural practices while generating potential investment returns with a long-term horizon, making it a favorable investment option for those looking to impact the world positively.

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