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FarmTogether Summary
FarmTogether is a farmland investment manager providing accredited and institutional investors unparalleled access to institutional-quality farmland offerings at the click of a button. Their all-in-one platform facilitates access to this asset class through a variety of products, including crowdfunded farmland offerings, 1031 exchanges, sole ownership bespoke offerings, and the Sustainable Farmland Fund.
Each deal is structured as its own LLC, so this is not a REIT investment. Investors become owners of the LLC associated with their land purchase.
Farmland has historically proven itself as a strong investment for many years, but the only problem was that it wasn't widely accessible to individual investors. With FarmTogether, investors can participate in an asset class that has historically outperformed average annual returns from the S&P 500 – and with much lower volatility. Farmland has experienced net positive growth each year over the last three decades.
The platform is reserved for accredited and institutional investors and requires a minimum investment of $15,000. The team targets opportunities in prime growing regions across the US that typically yield between 6-13% returns with 2-9% cash yields – all net of fees.
As is the case with most other real estate investments, farmland investments are designed to be an illiquid, non-traded asset, which can provide the asset more time to increase in value. Investors should be ready to commit to the entire duration of the investment and should expect longer holds with permanent crops, which may take several years before reaching productivity.
Pros
- Management team has tremendous experience
- Range of offerings across both row crops and permanent crops to fit a broad spectrum of risk/reward appetites
- Access to an asset with historically stable returns
- Hassle-free investment process
- You can specify a set dollar amount to invest
- Sole purchase deals available for larger investors ($3M+)
- Fund option for those looking for diversified exposure through a single allocation.
Cons
- Accredited Investors Only
- $15,000 Minimum Investment
- Fees can be a little confusing at first
Key Points
- Farmland has been a historically stable investment with consistent returns.
- Farmland's low volatility and correlation with other assets make it an attractive investment for portfolio stability.
- Reasons for the recent increased interest in farmland investment include billionaire investors, stock market valuations, growing population, declining arable land, and high food prices.
- FarmTogether is a farmland investment manager specializing in providing access to institutional-quality farmland offerings in prime growing regions across the US.
- FarmTogether offers several investment avenues, including crowdfunded farmland offerings, 1031 exchange, sole ownership bespoke offerings, and a Sustainable Farmland Fund, and targets returns of 6-13% with cash yields of 2-9%.
Farmland is an investment opportunity that has been around for thousands of years and, historically, has consistently delivered average annual returns above the stock market.
Farmland’s returns are particularly impressive on a risk-adjusted basis. Driven by low volatility and low correlation with most other assets, farmland can help provide overall stability, even in today’s adverse market conditions.
The reason for the increased interest in farmland investing today is vast, but to name a few:
- Billionaires like Bill Gates are buying farmland left and right
- Valuations for equities (stocks) have plummeted in 2022 and 2023
- Demand for quality farmland is expected to increase with a growing global population
- The amount of arable farmland is steadily declining, driving up land values
- Inflation is driving food prices to record-highs
FarmTogether is one investment platform that enables you to access the asset class of farmland. However, this isn't your “run-of-the-mill” farmland investment.
Invest In Farmland Today!
| Platform | Minimum | Link | Accredited Only | Investments |
|---|---|---|---|---|
 | $8,000+ | View Investments | Yes | US Farmland, Timberland, Vineyards |
 | $15,000+ | View Investments | Yes | US Farmland |
FarmTogether Review: Summary
- FarmTogether is a farmland investment manager specializing in an institutional-quality row and permanent crops in prime growing regions across the US
- They are capitalizing on making the $2.9 trillion US farmland market more accessible to accredited and institutional investors
- FarmTogether offers a variety of investment avenues, such as crowdfunded farmland offerings, 1031 exchange, sole ownership bespoke offerings, and a Sustainable Farmland Fund
- FarmTogether targets overall average returns of 6-13% and cash yields of 2-9%
Click here to view current offerings on FarmTogether!
What Is FarmTogether?
FarmTogether is a farmland investment manager providing accredited and institutional investors unparalleled access to institutional-quality farmland offerings in prime growing regions across the US. Their all-in-one platform facilitates access to this asset class through various products, including crowdfunded farmland offerings, 1031 exchanges, sole ownership bespoke offerings, and the Sustainable Farmland Fund.
The company was founded in 2017 and has since raised over $14 million in venture capital funding.
The FarmTogether management team and partners are cross-industry professionals with extensive experience in farmland investing, investment management, agriculture, and ag-tech, demonstrated by $1.2B+ of collective deployed capital. Their firm leverages technology and data science to identify deals and crop types, from almonds and apples to corn and citrus, to fit a broad spectrum of risk/reward appetites.
FarmTogether generates returns through two forms: capital appreciation and income.
- Capital appreciation is generated if a property is sold for more than it was bought.
- Income is generated through rental payments via lease agreements (row crops) or direct management contracts (permanent crops) and the revenue generated by farming operations.
The team targets opportunities that typically yield 6-13% returns with 2-9% cash yields – all net of fees.
How Does FarmTogether Work?
FarmTogether uses a proprietary sourcing technology and strategic partnerships to review a mix of on-market and off-market opportunities across the United States.
- Their process starts with a global macro view and then dives deep into the end markets for their target farm products. Finally, they analyze the supply, demand, consumer preferences, and more for a long-term view of price and valuation trends.
- Their team then conducts a property analysis incorporating over 150 data sets from public, private, and proprietary data sources.
- Finally, they apply proprietary technology and investment expertise to zero in on the best investment opportunities in their target geographies and crops.
FarmTogether requires a low minimum investment of $15,000 for their crowdfunded offerings. The amount an investor chooses to invest will determine how many acres of the property they will own, and returns are paid out proportionately to the percent of the project they own.
The minimum investment for their other products is $100,000 for the Sustainable Farmland Fund LP and $3,000,000 for their bespoke channel.
After creating a free account, investors can browse carefully vetted farmland investments, review due diligence materials, and sign legal documents seamlessly online.
Each listing on the FarmTogether platform includes information on the deal's total equity, the project's target net IRR, the target net cash yield, and a different target holding period so investors know what to expect.
Click here to view current offerings on FarmTogether!
Minimum Investment
FarmTogether requires a low minimum investment of $15,000 for their crowdfunded offerings.
The amount you invest will determine how many acres of your property. They pay out returns proportionately to the percentage of the project that you own.
The minimum investment for their other products is $100,000 for the Sustainable Farmland Fund LP and $3,000,000 for their bespoke channel.
Holding Period
Each investment on the platform has a listed time horizon, at which point the firm plans to sell the deal. Most crowdfunded deals hold 8-12 years, while the Sustainable Farmland Fund requires a two-year lock-up period. The specific deal structure determines the hold period for their bespoke offerings.
FarmTogether currently needs a secondary market for investors to resell their interests to other investors. However, it is unlikely that a secondary resale market will develop, or if it does develop, it will provide investors with liquidity for their investment.
Click here to view current offerings on FarmTogether!
Investment Offerings
Perhaps one of the most unique aspects of FarmTogether is that they do not follow a “one size fits all” approach.
Instead, they have three different offerings:
- Crowdfunded Farmland Investments
- Sustainable Farmland Fund
- Bespoke Sole Ownership Deals
1. Crowdfunded Farmland Investments
Through these offerings, you can access fractional ownership in real farms with a $15,000 minimum.
Once again, all investment offerings from FarmTogether are accredited only.
Just to let you know, this is not a REIT investment. Instead, each deal has a separate LLC formation where you become a part owner.
2. FarmTogether Sustainable Farm Fund
In addition to offering individual deals to investors, FarmTogether also has a fund available to investors.
This is for those interested in a diversified portfolio of US farmland, including exposure to permanent and row crops in prime growing regions of the country, through a single allocation.
The fund comes with a $100,000 minimum investment, which may be out of reach for some.
This fund has an evergreen structure, meaning investors can enter and exit it as they deem fit.
3. FarmTogether Sole Ownership
An offering unique to FarmTogether is the ability to purchase bespoke deals where you are the sole owner.
This option allows investors to render sole ownership of a farm they choose; investors can think of this as a separately managed account.
There are several benefits to this route. Namely, the customization available to the investor regarding legal structure, capital structure, and holding period. Investors going down this route will also be able to participate in 1031 exchanges.
Click here to view current offerings on FarmTogether!
Pros of FarmTogether
- The management team has tremendous experience
- Range of offerings starting as low as $15,000 minimum
- Access to an asset with historically stable returns
- Hassle-free investment process
- You can specify a set dollar amount to invest
- Sole purchase deals available for more prominent investors ($3M+)
- Fund option for those looking for diversified exposure through a single allocation.
Cons of FarmTogether
- Accredited Investors Only
- Fees vary from offering to offering
FarmTogether Review: Final Thoughts
As far as crowdfunded farmland investing platforms go, FarmTogether has a lot of things going for it. First, with a middle-of-the-road minimum investment of $15,000, it is easy for investors to start by diversifying a small portion of their portfolio into farmland.
Additionally, the user-friendly interface and transparency provided by the platform make it easier for investors to feel confident. This includes their investment size calculator, a unique and valuable platform offering.