7 Best Farmland Investing Platforms: REITs & Crowdfunding Platforms

Farmland investing is a great way to diversify your portfolio, with the potential for long-term appreciation.

There are a few different ways to find farmland investments. You can buy shares of a farmland REIT, a real estate investment trust that owns farmland properties. REITs are a good option if you want to invest in farmland but don’t want to worry about the farm’s day-to-day operations.

You can also invest in farmland through a crowdfunding platform. These platforms allow you to invest in small parcels of farmland, often for as little as $100. This is a good option if you want to diversify your portfolio and don’t have much money to invest.

Farmland investing is a good way to invest in a simple business model that will make money over time. The farmland investment can be used to produce crops or livestock. You can buy a share of farmland from a company that owns the land.

This option is good if you don’t want to worry about the farm’s day-to-day operations.

Best Farmland Investing Platforms

Let’s get into several options for you to find great farm investments to diversify your portfolio.

1. FarmTogether

Another popular farmland investing platform is FarmTogether. This crowdfunding site, like AcreTrader, is focused on agricultural land. You must be certified as an investor to use the platform. You’re buying shares in LLCs through a platform if you do so.

FarmTogether is a great platform to find farmland values and trends. The site also offers due diligence resources and a forum to connect with other investors.

Some of the most well-known features include:

• Acreage size: Minimum of 10 acres
• Types of investments: LLC shares
• Location: Open to all 50 states
• Investment minimum: $5,000
• Returns: Varies depending on location, quality, and other factors

You may also buy smaller bits of independent farming. You may diversify even further by investing in farms across the United States. It allows for geographical distinction, especially due to agricultural weather conditions. This is one of the most well-known farmland crowdfunding platforms out there.

Like what you are hearing? Read more in our full FarmTogether review.

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2. AcreTrader

AcreTrader is a new farmland investment platform. The website was launched for a limited number of projects, enabling the crowdfunding platform users to combine their funds to make bigger investments. Since launching these products, the company has seen considerable traction in the marketplace.

The company has seen considerable traction in the marketplace since launching these products. This is an important consideration for investors as it shows interest in this type of investment. In addition, AcreTrader offers a variety of features that make it an attractive option for investors. These features include:

• Access to deals for accredited investors
• Direct investments in farmland with no middleman
• Holding periods for properties are usually 5-10 years
• Ability to invest starting at $8,000

These features make AcreTrader an attractive option for investors. The company offers access to deals for accredited investors and the ability to invest in farms without a middleman.

This allows investors to have a direct investment in the agricultural industry. In addition, the company offers flexible investment terms that allow investors to invest generally between five and ten years.

This flexibility allows investors to find an investment that meets their needs. Finally, AcreTrader allows investors to invest from $8,000. This makes it possible for people with all levels of investment to get involved in this type of investment.

Want to learn more? Read our full AcreTrader review for more information about the platform.

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3. Groundfloor

Groundfloor is important farmland investing platform because it offers opportunities for smaller investors to get into the market.

Groundfloor allows you to invest in specific real estate projects, giving you much control over your investment. They also have a very low minimum investment requirement, which makes it accessible for a lot of people.

Groundfloor is more known for its real estate crowdfunding investments but occasionally offers farmland investments.

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4. Farmland LP

Farmland LP is important to investors because it offers diversification. The company has a portfolio of properties in different states, which helps to minimize the risk that anyone state’s economy would have on the returns of the investment.

Farmland LP invests in two different funds, providing even more diversification. In addition to diversification, Farmland LP offers investors liquidity.

The company has a 1031 exchange program, which allows investors to sell their shares and reinvest the proceeds into other qualifying properties. This program is important because it allows investors to cash out of their investments without selling their property at a loss.

See Related: Best States for Real Estate Investing

5. FarmFundr

Another online property crowdfunding platform that specializes in farmland is FarmersFundr. FarmFundr, unlike AcreTrader and FarmTogether, manages the land you invest in.

FarmFundraising is an important investment platform for a number of reasons. Firstly, it offers investors a way to invest in farmland without managing the property themselves.

Secondly, it offers investment opportunities in larger projects that yield higher returns. Finally, it allows investors to diversify their investment portfolio by including farmland investments.

The two investment programs are available in two different versions: one with lower minimum investments of $10,000 and the other for investors with balances above $500,000. This is compared to a significant investment that pays 6% per year, but larger projects pay up to 2%.

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6. Stewardship

Stewardship is important to investors because it offers a low minimum investment. This makes it easier for people to invest in farmland, which can often produce special crops.

Unlike other platforms, Steward does not require a large investment. It is also easier for customers to contact the company. In contrast to other crowdfunding sites, Steward does not invest in farmland equity. This makes it a safer investment for customers.

7. Landfund

Landfund is a great option for people who want to invest in the farming section. The company has a low minimum investment, which makes it easier for people to invest.

In addition, the company offers a variety of services that can be helpful for investors. These services include due diligence, farm management, and consulting. Landfund is a great option for people who want to invest in farmland.

Consider the farmland investment opportunities offered by Landfund, which has an easy signup process and low minimum investment requirement.

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What is Farmland?

Farmland can be defined as land that is used to produce crops or pasture livestock and includes some forested areas. Investing in farmland has shown to be an asset class that delivers steady returns over time. Still, it also comes with risks, such as the fluctuating prices of agricultural commodities and weather conditions.

Farmland investments can provide stability and consistent returns for investors, and they can also be a way to diversify your portfolio.

Most other asset classes, like the stock market and bonds, can be volatile, but farmland tends to be much more stable. This is because the demand for food will always be there, regardless of economic conditions.

Why invest in farmland?

One of the reasons why I believe investment should occur is due to investing in agricultural real estate. Return. As shown in the graph above, farmlands have outperformed other asset classes by substantial margins in conventional investments.

For more than 30 years, agricultural real estate has done extremely well in a variety of economic and financial situations. It won’t produce massive returns right now, but it demonstrates the impact of farming land over time.

What drives farmland returns?

The three main factors that drive farmland financial returns are crop yields, commodity prices, and rents. Yields are determined by a number of factors, such as climate, soil quality, seed type, and farming practices.

Commodity prices are the second and most important factor. The costs that farmers receive for their goods are the first consideration. Rental rates are the second significant element; landlords may charge tenants whatever they want. When landowners sell property, they can earn capital gains as well.

Farmland also offers a hedge against inflation since the purchase price of farmland usually rises with inflation. Consequently, it is reasonable to expect that the value of farmland will continue to increase as it has for many years.

While new technology has come to market – such as electric motors – some factors, such as water availability, remain a concern. Farmland has appreciated faster than other real estate types over the past few years, and that trend will likely continue.

This includes increasing demand from investors and a finite supply of quality farmland. Investors are looking for assets that offer stability and protection from inflation, and farmland meets those needs.

The amount of farmland available for sale is decreasing, and the land cost is increasing. This means investors must be more proactive in finding and purchasing quality farmland.

See Related: What is the Current Greatest Threat to Agricultural Sustainability?

Ways to Find Farmland Investment Opportunities

REITs and crowdfunding platforms are two methods investors can use to gain exposure to farmland.

REITs

Real Estate Investment Trusts (REITs) allow investors to own a piece of a property or farmland. REITs own and operate properties, and as a result, they offer investors a way to invest in property without having to go through the hassle of buying and managing it themselves.

The main benefit of REITs is that they offer investors liquidity. This means that investors can sell their shares in a REIT anytime, which is not always true with real estate investments.

REITs also offer a way to invest in different property types, such as office buildings, shopping malls, and farmland. Farmland REITs are a relatively new type of REIT, and as a result, few are available.

Crowdfunding platforms

Another way to invest in farmland is through crowdfunding platforms. These platforms allow investors to pool their money and invest in a project or property.

Crowdfunding platforms have become popular, and many different types are now available. One of the benefits of crowdfunding platforms is that they offer investors access to deals they may not be able to find elsewhere.

However, it is important to research before investing through a crowdfunding platform, as some are better than others. Each option has its advantages and disadvantages, so it’s important to weigh the pros and cons before making a decision.

Here are a few things to consider when choosing between a REIT and a crowdfunding platform:

• Cost: REITs typically have higher upfront costs than crowdfunding platforms. Crowdfunding may be the better choice if you’re looking for a lower-cost option.
• Liquidity: REITs are much more liquid than crowdfunding platforms. A REIT may be better if you need to sell your investment quickly.
• Returns: Crowdfunding platforms typically offer higher returns than REITs. If you’re looking for a high return on your investment, crowdfunding may be the better choice.

Accredited vs Non-Accredited Investors

Some investors are having trouble becoming accredited for a variety of reasons. The first stage requires certain income levels to be considered for accreditation. Only accredited investors can use certain platforms via private placements.

The Securities and Exchange Commission (SEC) is concerned about the ability of smaller investors to invest. A married individual making less than $150,000 can qualify as a net-income-producing investment investor.

How can non-accredited investors invest in farmland?

A farm-land reinsurance company. Finally, another option is obtaining farmland access using real estate investment trusts. It’s basically as though the real estate trade is in stocks. However, there will be farm property.

See Related: Solar Farm Income Per Acre

Consider What Makes a Good Investment in Farms

Farmland investment is a decent asset class, but only if you do your due diligence and consider all investment opportunities before you begin investing, such as the farmland acreage, do you want to focus on equity deals only, and what type of farmland partners you want to work with.

You will also want to consider the risks of farmland investments, such as weather, pests, and commodity prices.

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Buy land directly

You may purchase productive property and then lease it to farmers and ranchers. Because investors will most likely want a large piece of land, this method of investing in agriculture may be pricey.

In 2018, the typical agricultural land price was $4140, with pasture at $1390. Investor-owned croplands are generally leased for $128 per hectare, whereas pasturelands are leased for $12 per hectare, resulting in a 3% return on investment and 0.9% return for investors investing in agricultural land.

In the Midwest, prices were considerably lower with an average of $2700 per acre for agricultural land, $1090 for pastureland, and $97/acre for crop ground.

The study also found that the rental rate for cropland was considerably higher in the Midwest at $179/acre. In comparison, pastureland was only leased for $11/acre, resulting in a 2% return on investment and 1.1% cashback for investors.

Choose Your Crop Wisely.

When it comes to investing in farmland, it’s important to choose your crop wisely. You want to make sure that you’re investing in a crop that will be profitable and that you have a good understanding of the risks involved. There are a number of different crops you can choose from, so do your research and make the best decision for your investment.

The average annual return for pistachios is 10%, while almonds have an average annual return of 12%.

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