GP Capital farmland agriculture fund review

GP Capital Review 2021: Best Farm Investment?

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GP Capital
  • Website Transparency
  • Investment Liquidity
  • Minimum Investment
  • Investment Option
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Summary

GP Capital is committed to revolutionizing the farming world. Rather than focus on limited farmland, GP Capital is creating farms that do not need traditional farmland.

By engineering Pods designed to enhance crop yields and avoid faulty weather, farmers can focus on what they love: farming.

Investors can get started with GP Capital by purchasing one of these pods. GP Capital will then do the rest of the heavy lifting!

Pros

  • Company literature states you will receive a 20% Return
  • Tax Deductible farm equipment purchases
  • Doing your part to support alternative farming that’s highly productive, grows organic crops and doesn’t rely on the rapid climate change the world is currently experiencing

Cons

  • Large Minimum investment of $100,000
  • If you decide you want to get out of your initial 5-year lease, you won’t get refunded your full investment.
  • Doesn’t provide a list and profile of its management team
  • New company without a proven track record

Farmland investing has been around longer than most would guess. While people typically think of the S&P 500 or other index funds as a safe and reliable investment, farmland can also meet this criteria.

Investing in farmland has long produced consistent and strong returns to investors. It is also typically a way to hedge against market volatility.

In this article, we will provide a deep-dive on a company focused on farming. Though unlike other farmland investing platforms, this company has a unique perspective. Keep reading for our full GP Capital review.

What is GP Capital?

Launched in 2018 and based in Corona, California, GP Capital is a company banking on the proliferation of the agricultural technology (AgTech) industry.

GP Capital distributes and leases advanced indoor medical-grade cultivation equipment. Specifically, they lease 40-foot cultivation rooms placed in highly advanced growing complexes.

It is not a brokerage company. GP Capital is a Land Management and Heavy Machinery Purchasing and Leasing Company supporting indoor farming.

Indoor farming is a rapidly growing sector in the nation. GP Capital provides a turnkey investment to immediately service this accelerating industry.

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What is AgTech?

AgTech relates to technology-focused businesses and improvements within agribusiness. The sector is substantial in both size and importance. Within the United States alone, agribusiness brings in US $3.0 trillion annually in revenue.

Businesses in this industry may produce agricultural commodities, purchase agricultural produce, or supply goods and services to farms.

Why Is AgTech Important?

Traditional farms exist on acres of land that’s likely been passed along through generations of family members.

But there are many challenges to growing crops outside, including:

  • Unpredictable and extreme weather
  • Fewer natural water sources
  • Farmers may lack the money to buy new equipment
  • Reduced immigration may drive up the cost of farm labor
  • Costs for packaging and distribution are rising

These and other factors have focused attention on AgTech recently.

How Does GP Capital Work?

Investors buy a Pod and lease it to GP Capital. Buying a Pod will cost you $100,000, plus applicable taxes.

New investors can immediately launch their own business in the AgTech field and produce what GE Capital says will be significant returns for years to come.

Through its partnerships, GE Capital will manage the entire cultivation, distribution and sales of everything grown in your Pod.

What Is The Return On My Investment?

According to the GP Capital site, your investment of $100,000 will deliver a return of 20% per year, accumulating year after year with your Pod ownership in 1 to 5 years. It will continue at this rate if you decide to keep your investment for another 5-year extension.

What Is A Grow Pod?

A Grow Pod is a modular, stackable and mobile vertical growing environment. It is engineered to maximize crop yield and rely on automation.

They are fully insulated shipping containers that have been modified to provide the optimal controlled environment for growing. This includes a wide range of horticultural and agricultural products in all environments and climates. According to GP Capital, Pods produce a higher yield that is faster, and more reliable than traditional land-based farming.

With a Grow Pod container, it is possible to cultivate crops in environments that were not usable for farming.

What’s more, growing in a secure, climate controlled environment means no need for pesticides, which produces better yield and healthier produce. There’s also the perk of not requiring heavy farming equipment that frequently needs updating. The smaller spaces don’t rely on large numbers of farm workers to harvest the crops.

Pod farms by GP Capital are in California and Oklahoma.

How Efficient Are Pods For Farming?

From the advanced filtration systems, to the proprietary software, and next level security; each GP Capital POD was designed with the mechanisms necessary to establish an ideal micro-climate.

The modular, self-contained Pods are fully automated with:

  • Water and feed control system
  • Full control over CO2, lighting, temperature, humidity, air conditioning and heat
  • Vent fans and high temperature shut-offs
  • Proprietary LED lighting systems

Grow Pods have their own patented Bipolar Ionization air purification technology designed to be effective against bacteria, spores, VOC compounds and particles.

CP Capital has designed a cloud-based system that lets you operate every aspect of your grow room from one intelligent and fully programmable controller.

GP Capital Review: Conclusion

There’s no doubt that solutions need to be found to address the population explosion and subsequent increased worldwide demand for food. The population simply continues climbing.

Vertical farming is one solution because this method doesn’t rely on natural water sources and optimal growing weather. Indoor farming reduces the need for pesticides and produces more organic crops.

GP Capital offers an interesting opportunity for investors to own a self-contained growing environment. With a price tag of $100,000 plus tax, it’s a hefty sum to put down without seeing tangible proof of performance. The company states there will be a 20% annual return on investment, but like all investing activities, this is by no means guaranteed.

Do your homework before making any decisions about this business model. If this interests you, be sure to check out their website for more information.

Cons

  • Minimum investment of $100,000 plus applicable taxes
  • Return on Investment isn’t carved in stone. This is still investing your hard-earned money, and the possibility of losing it is real
  • If you decide you want to get out of your initial 5-year lease, you won’t get refunded your full investment. GP Capital will buy back your Pod after a 5-year lease for $75,000 or $50,000 after a 10-year lease
  • Doesn’t provide a list and profile of its management team
  • New company without a proven track record

Pros

  • Company literature states you will receive a 20% Return
  • Tax Deductible farm equipment purchases
  • Doing your part to support alternative farming that’s highly productive, grows organic crops and doesn’t rely on the rapid climate change the world is currently experiencing

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