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
  • Operating History
3.1

Summary

Farmfolio allows both accredited and non-accredited investors to purchase Land Ownership Titles (LOTs) in South America. Right now, the focus is on lime farms in Columbia. Instead of just owning land that is leased to a farmer, Farmfolio investors own a share of the entire farming operation.

For example, if they owned 1 out of 100 shares of a farm they would earn 1/100th of the profits and pay 1/100th of the expenses. All management duties are handled by the Farmfolio team, making this a passive investment for those who are potentially interested.

However, the farms are still able to benefit from large scale operations. That is because the farm is operated as one singular unit.

Pros

  • Everything from identifying profitable farms to cultivating and exporting crops is handled by the company
  • By having its own pack houses, Farmfolio does not need to rely on outside help that could have downturns if the workforce changes
  • Passive investing opportunity
  • Own a piece of a real farm in South America
  • Farms can be purchased with major Cryptocurrencies like Bitcoin

Cons

  • Minimum investments per LOT can be high, over $15,000 in most cases
  • Owning shares of a single farm does not give you diversification
  • CEO had past troubles with the SEC in 2009 working for a completely separate company

Investing in farmland has been growing in popularity for many years, although it is an investment that has been around for thousands of years. With low correlation to the stock market and consistent returns, many investors are considering adding farmland to their portfolio.

In the past, investing in farmland yourself usually meant purchasing a farm. However, that can be incredibly time intensive and require a specific set of skills and knowledge. Another way to invest is through online farmland investment platforms.

One of these platforms is Farmfolio, offering investors access to farmland in South America.

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 traditional real estate assets. On average, farmland brings an average annual return of 11.5%.

Farmland returns have been found to have low volatility when compared to other assets such as stocks. Simply put, 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.

What Is Farmfolio?

Farmfolio Review

Farmfolio is a platform that lists farmland investments in South America. However, instead of simply leasing the land to the farmer, investors own a piece of the entire farming operation.

However, none of the farm management responsibilities fall on your shoulders. The team at Farmfolio handles all of the growing operations, produce preparation, shipping, distribution etc.

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.

The current focus of Farmfolio is lime farms in Columbia. This year, they have sold out of 2 lime farms with another on the way in the near future.

PlatformMinimumLink
AcreTrader farmland investing platform$15,000 To $25,000View Investments
FarmTogether farmland investing platform$15,000View Investments
Robinhood Table$100 (REITs)View Investments

How Does Farmfolio Work?

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

LOTs stands for Land Ownership Titles.

  1. 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.
  2. Then, they negotiate with the farm owners to buy their property and break it into LOTs.
  3. 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 doing well 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!

Farmfolio Investment Minimum

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.

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.
  • Walmart, Costco, Trader Joes, Albertsons all sell the limes grown on Farmfolio farms.

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.
  • CEO of the company had past troubles with the SEC in 2009.

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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