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Gaining exposure to farmland as an asset class is a challenging feat.
While many farmland investing platforms have emerged, most require you to be an accredited investor.
What Is An Accredited Investor?
If you don't know what an accredited investor is, here are the requirements to be accredited:
- Your earned income exceeds $200,000 if single or $300,000 if married in both of the last two years.
- $1 Million net worth, excluding your primary residence.
- You hold a Series 7, 65, or 82 license.
Meeting any of the above requirements deems you to be an accredited investor.
If you do not meet these requirements, you can still invest in farmland with a few avenues. Here's how!
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|Commercial Real Estate Properties
|US 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.
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.
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.
Many small farmers need help with securing financing via traditional means. Steward aims to solve this by allowing lenders to loan money to farmers.
This exposes lenders to the farmland debt asset class and helps farmers grow or expand operations.
With a debt investment, you don't own the land or the farm. Instead, you are the bank providing financing to farmers.
Debt investments tend to have lower returns than equity investments but also carry lower risk.
2. Farmland REITs
One more option for non-accredited investors looking to gain access to farmland is a real estate investment trust.
This is real estate that trades on the stock market. However, the underlying real estate, in this case, would be farmland.
The minimum cost to get started is the price of a single share. However, with fractional share brokerages, that minimum could be as little as $1.
Currently, there are two farmland REITs available to investors in the US: