Review of the farmfolio farmland investing site

Farmfolio Review 2021: Best Farmland Investing Platform?

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Farmfolio
  • Investment Options
  • Minimum Investment
  • Liquidity
  • Website Transparency
3.3

Summary

Farmfolio is a company dedicated to farmland and bringing strong opportunities to investors.

With a focus on South America and high demand products, Farmfolio seeks to provide investors are safe and consistent return.

Investments fill quickly as they are limited to few investors, so you need to check the site regularly. Buying shares with Farmfolio can also be quite expensive.

Pros

  • Everything from identifying profitable farms to cultivating and exporting crops is handled by the company
  • By having its own packhouses, Farmfolio does not need to rely on outside help that could have downturns if the workforce changes
  • Passive investing opportunity
  • Its farms are growing in-demand produce

Cons

  • Prices per LOT can be expensive
  • Opportunities are limited to a few investors
  • Limited number of agricultural products means if demand dips, they would need to scramble to find other viable products for global export.

Investing in farmland has been a top investment class for many years. With low correlation to the stock market and consistent returns, many investors love adding farmland to their portfolio.

How you actually invest in farmland can take many forms. Most traditionally, you could purchase a farm. However, that can be incredibly time intensive and require a specific set of skills and knowledge. Another way to invest is through a platform, such as Farmfolio.

In this article, we provide a Farmfolio review and cover the benefits of farmland investing.

What Is Farmfolio?

Farmfolio Review

Farmfolio is a company committed to farm development that has a unique perspective in the space.

Its team of experts locates the land with the highest quality products. Then they oversee farmers in the planting, harvesting, and maintaining of the land and trees. Finally, they sell the produce and wood to its integrated network of packhouses for distribution around the world.

This is a unique model if you are an investor interested in farmland. Farmfolio gives you a way to become part of a diverse selection of high-demand agricultural products, all in emerging markets. In other words, ag products that are hot commodities.

Founded in 2015, the company focuses its efforts in Central and South America, where all its farms are located. These areas are known for their rich soil, plentiful rain and long growing seasons.

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Why Invest In Farmland?

There are so many reasons that investing in farmland is a solid choice for diversifying your portfolio.

Over time, farmland has proven itself to be a smart investment, faring far better than any other real estate asset. In fact, the USDA says that farmland brings an average annual return of 11.5%. Simply put, farmland does not lose its value.

Investors will have other benefits along with this well-above average return. Farmland returns have been found to have low volatility when compared to other assets such as U.S. Treasury Bonds.

Farms are a tangible asset that tend to not gain or lose value with roller coaster ups and downs frequently seen in the stock market.

Owning shares of farmland is a prime option for earning income. This could be from renting out the land or from your share of the annual crop harvesting and sales.

When you invest in farmland, you have the satisfaction of knowing that, as an investor, you are helping preserve open spaces that might otherwise be slated for deforestation and land development. This happens when trees are cut down and natural pastures are leveled to build office complexes and housing developments

There are also significant tax benefits to farmland investors.

How Does Farmfolio Work?

The company is set up to offer a unique LOTs program.

LOTs stands for Land Ownership Titles. FarmFolio experts research and identify what they refer to as alpha farms that produce the highest quality export fruit. The farms are also nearing peak  production. Then, they negotiate with the farm owners to buy their property and break it into LOTs. After this, they put out offerings to investors. The LOTs program gives investors a way to directly own the farmland.

All of the farms are established and flourishing historically. They give the farmers on the land and the local communities stability and opportunities for work.

Farmfolio experts manage each project from start to finish. The company even has its distribution process down to a science. FarmFolio is quickly becoming one of the largest exporters in all of Columbia.

Experts at Farmfolio believe agricultural space, particularly in emerging markets, carries a huge amount of potential. Through the LOTs structure, they have worked to make farmland ownership easy for investors looking for passive investing.

Click here to view current offerings on Farmfolio!

What Is Passive Investing?

This term means as an investor, you will not be making decisions on an ongoing basis for how to run the farm, including buying equipment, sowing seeds, harvesting crops and preparing them for shipment.

Thus, all of the work is done by farmers who’ve successfully utilized the land profitably and efficiently for decades.

How Much Do I Need To Invest?

Each Farmfolio project carries its own price tag per LOT. Recently, shares in a lime farm in Caldas were offered at $32,000 each. At the other end of the spectrum, shares in a coconut farm in Columbia carried a price tag of $65,000 per LOT.

How Much Is Raised Per LOT?

Right now, if you go to the Farmfolio site, you will see several projects are already sold out. The amount invested caps out at more than $2.5 million. In fact, most projects raise around $2 million.

The number of investors allowed in each offering is limited. Some offer only around 100 investors per project. This means you have to jump on new projects when they are listed.

Click here to view current offerings on Farmfolio!

What Products Are Cultivated On Farmfolio’s Selected Farms?

Farmfolio limits its agricultural products to 4 specific products: Limes, coconuts, avocado and teak.

  • Limes: The U.S. imports this fruit on a massive scale. Over 97% of limes are imported, with more than 600 shipping containers filled with limes entering the country weekly. European countries think of Columbian limes as one of the most appealing forms of the fruit. Both India and China are showing a sharp spike in the demand for limes.
  • Coconuts: When you think of coconuts, you no doubt picture sunny beaches in tropical areas, and their reputation for giving an island experience is unparalleled. Coconuts have been called a superfood because they are rich in minerals necessary for good health. Like limes, demand for coconuts is skyrocketing
  • Avocado. There’s been a rapid uptick in people seeking health-conscious foods such as the nutritious avocado. The Asian market also has a growing appetite for avocados, especially Japan and South Korea, where imports have grown 10 percent and 32 percent respectively.
  • Teak. There is a rise in global demand for this product, and by the year 2050, estimations indicate there will be a supply shortage for this high-quality hardwood. Substantial investments in the wood will be necessary to meet this demand and fill the supply gap. As a financial asset, teak has seen an annual growth of around 5% over the last ten years.

Farmfolio Pros

  • Everything from identifying profitable farms to cultivating and exporting crops is handled by the company, which leaves no guesswork.
  • By having its own packhouses, Farmfolio does not need to rely on outside help that could have downturns if the workforce changes.
  • Passive investing means property LOT owners do not need to think about day-to-day operations.
  • Its farms are growing in-demand produce that, based on their research, will continue to expand globally.

Farmfolio Cons

  • Prices per LOT run as high as $65,000 and sell out quickly. Therefore, you need to make decisions on whether or not to buy quickly.
  • Limited number of agricultural products means if demand dips, they would need to scramble to find other viable products for global export.

Farmfolio Review: Conclusion

Wise investors should give serious thought to adding farmland to diversify their portfolio, and Farmfolio is a solid option.

They’ve done the homework and settled on working with farms in an area known for peak growing environments. They’ve also identified key products with rising demand and potential future scarcity: limes, coconuts, avocado and teak wood. They are continuously on the lookout for new ways to capitalize on the growing demand for the products cultivated on their farms.

The company’s hands-on approach means they identify, develop, manage, and provide ongoing oversight for every piece of land in investor portfolios.

Farmfolio’s innovative system helps deliver value and profits back to LOT owners.

Click here to view current offerings on Farmfolio!

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