What Asset Class Is Farmland Considered To Be?

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During times of uncertainty, boring is good.

Perhaps that's why interest in farmland investing has skyrocketed in recent years.

Billionaires like Bill Gates are buying up land left and right.

Farmland is a unique asset to invest in due to the consistency of returns and lower volatility compared to the stock market. But what asset class does farmland fit into?

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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.

Asset Classes

There are 5 major asset classes out there:

  1. Stocks or Equities
  2. Fixed Income Investments
  3. Cash and Equivalents
  4. Futures and Derivatives 
  5. Alternative Assets

Most investors out there have exposure to just a few of these major asset classes.

Farmland isn't the same as your traditional real estate investment either.

When you invest in farmland, you are putting your money into the major asset class known as alternative assets or investments.

Alternative Investments

Many different types of assets fall under this category, including:

  • Artwork
  • Farmland 
  • Wine
  • Antiques
  • Real Estate
  • Private Equity 
  • Venture Capital
  • Commodities
  • Collectibles 

Many experts recommend investing around 15 to 20% of your total portfolio into alternatives. However, most average investors have almost no exposure, aside from their home which most do not consider to even be an investment.

Farmland is truly one of the best ways to get exposure to alternatives.

Over the last few years, it has become easier than ever before to invest. You don't have to go out and buy land yourself or even put on a pair of boots. There are numerous online platforms that allow you to invest in farmland as well as a few farmland REITs.

Farmland historically performs well in inflationary environments, as there is limited farmland to invest in, and food products will always be a vital commodity – especially during periods of high inflation.

With the various drivers of the current global economy being post-pandemic inflation and shifting supply chains, food production and farmland have only become more crucial as an asset.

This might be the perfect time to diversify into alternative investments through farmland!

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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