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AcreTrader vs FarmTogether 2024: Best Farmland Investment?

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FarmTogether Review 2024: Best Farmland Investment Platform?

  • Minimum Investment
  • Accessibility
  • Transparency
  • Investment Fees
  • Offering Selection
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AcreTrader Review 2024: Best Farmland Investment?

  • Minimum Investment
  • Accessibility
  • Transparency
  • Investment Fees
  • Offering Selection
View Offerings

FarmTogether and AcreTrader are crowdfunding platforms offering access to farmland investments.

Both platforms cater to accredited investors, requiring a minimum investment ranging from $10,000 to $15,000.

Accredited investors must meet specific income and/or knowledge criteria.

While they share some similarities, they also have some differences.

Here's our full comparison and breakdown of AcreTrader vs FarmTogether.

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PlatformMinimumLinkAccredited OnlyInvestments
AcreTrader farmland investing platform$8,000+View InvestmentsYesUS Farmland, Timberland, Vineyards

Farmland Investing 101

Farmland has provided investors with consistent returns for decades, but gaining exposure to this alternative asset has been a challenge in the past.

Today, you can invest passively in farmland through crowdfunded real estate platforms like AcreTrader.

AcreTrader Investment

Instead of buying a farm yourself, investors pool their money together. And instead of managing the farmland yourself, AcreTrader takes care of that. They handle everything from the paperwork to finding a suitable farmland renter.

Click Here To View Current Farmland Investments On AcreTrader!

To date, the team over at AcreTrader has funded 149 properties, totaling over $365 Million in equity raised. This has been invested into over 50,000 acres of farmland.

Looking to learn more? Here's our full review of AcreTrader.

This is a sponsored promotion for the AcreTrader platform. Farmland Riches, LLC and it's members may have investments in companies represented on the AcreTrader platform. This informational post is by no means a promotion, solicitation, or recommendation of any specific investment.

Why Invest in Farmland?

If you're looking to invest and want something less volatile than the stock market, agricultural investing, specifically in farmland, may be a suitable option.

vineyard 2

Farmland has historically shown lower volatility than the stock market, providing stability during down market years. Farmland investments offer various returns, including capital appreciation over the long term due to limited supply.

Additionally, depending on the platform, investors may receive payments in the form of crop yields and cash, enhancing passive income.

Farmland has a low correlation with traditional assets, making it a solid addition to a diversified investment portfolio. Moreover, farmland investing can act as a hedge against inflation.

How to Invest in Farmland?

For investors who don't want to spend significant amounts on a single piece of farmland, crowdfunding platforms like AcreTrader and FarmTogether offer a solution.

These platforms pool small amounts of capital from a large number of investors, allowing them to collectively finance farmland ventures.

Accredited investors can participate in farmland crowdfunding, while farm REITs provide an alternative for those who don't meet the accredited investor criteria.

Liquidity and Diversification

Investing in agriculture typically involves leaving funds tied up in the farm for several years, with the expected investment term often being a minimum of 5 years.

Unlike public markets, farmland and other alternative investments tend to be illiquid.

  • FarmTogether plans to introduce a secondary market, potentially facilitating earlier redemption of investments.
  • AcreTrader has a marketplace for reselling farms, but no guarantees exist regarding finding a buyer.

Both platforms highlight the illiquid nature of farmland investments, advising against investing money needed within the next 5-10 years.

Acretrader Top Features

AcreTrader logo

AcreTrader is suitable for investors seeking passive income from U.S. farmland.

It employs a robust vetting process and charges a flat 0.75% annual servicing fee. Investors on AcreTrader can expect a solid 3% to 5% cash yield on investments, in addition to capital appreciation.

FarmTogether Top Features

farmtogether new logo

FarmTogether caters to long-term, high-income accredited investors.

It offers various investment options, including crowdfunded farmland, a Sustainable Farmland Fund with a $100,000 minimum investment, and bespoke opportunities for those seeking sole interest with a $3 million minimum.

The platform emphasizes user-friendliness, with a simple onboarding process.

Key Similarities

Here is what the two have in common:

  1. Professional Management Teams: Both platforms boast management teams with expertise in investment, finance, and farmland.
  2. Support for Farmland: Both platforms promote farmland as an investment with a high likelihood of good returns, offering capital appreciation and passive income.
  3. Vision and Mission Statements: FarmTogether focuses on buying and selling land, emphasizing global concepts like peace and sustainability. AcreTrader aims to make land buying and selling more accessible through technology, expertise, and data use.
  4. Free Signup: Both platforms allow free signups, enabling users to explore potential properties before making investment decisions.
  5. Investment Choice Opportunity: FarmTogether and AcreTrader offer investors the flexibility to choose the farm they want to fund from diverse investment options.
  6. Creative Technology: Both platforms utilize innovative technologies to educate investors about designated properties, offering smooth online investment processes and online learning centers.
  7. Different Account Types: Both platforms support various types of individual and entity investment accounts, including self-directed retirement accounts. AcreTrader also supports trust accounts.

AcreTrader

Click below to watch our interview with AcreTrader!

AcreTrader Pros

  1. Lower investment minimums and low asset management fees.
  2. Excellent user interface and educational materials.
  3. Handpicked farmland pieces, including timber, vineyards and farms.

AcreTrader Cons

  1. Fewer deals due to stringent farm vetting. (Hardly a con!)
  2. A newer company with a shorter track record.
  3. No guarantee of an early exit from investments.

FarmTogether

Click below to watch our interview with FarmTogether!

FarmTogether Pros

  1. Expert management team with a focus on suitable investments, particularly in citrus, grapes, and produce-bearing trees.
  2. Easy-to-use platform designed for first-time agricultural investors.
  3. Socially responsible investment platform, developing carbon-negative farms with 100% acreage enrolled in a Sustainable Farmland Management Standard.
  4. Offers a farmland fund with a short holding period (2 years).

FarmTogether Cons

  1. Limited to accredited investors. (So is AcreTrader.)
  2. Less liquid than traditional financial markets, lacking a secondary market.
  3. Investing in one farm is less diversified and riskier than owning a portfolio of agricultural investments.
  4. Greater variability in fees compared to AcreTrader.

Final Thoughts: FarmTogether vs AcreTrader

Farmland investments are poised for growth due to limited land availability.

Both FarmTogether and AcreTrader offer entry into the market with investments starting at approximately $10,000 to $15,000.

  • AcreTrader stands out for transparent and low fees, resulting in lower investment management fees.
  • FarmTogether emphasizes social consciousness, environmental friendliness, and a diverse staff.

Both AcreTrader and FarmTogether provide comprehensive features and a good user experience.

Regardless of choice, investors can diversify their portfolios with an alternative investment less correlated with typical stocks and bonds, making them suitable for a diversified investment strategy.

Click here to view current offerings on AcreTrader!

Click here to view current offerings on FarmTogether!

Don't Miss This Opportunity!

Invest In U.S. Farmland And Timberland Passively With AcreTrader!

 

Each parcel is divided into shares, and investors can purchase shares to earn cash distributions as well as benefit from the land value appreciation.

Farmland Riches is affiliated with AcreTrader, and we may earn a commission when you sign up for AcreTrader.

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