FarmTogether is a one-of-a-kind online platform that focuses on crowdfunded real estate investing. But unlike traditional real estate investing platforms–which focus on residential and commercial opportunities–FarmTogether takes a different approach.
They invest in farmland.
This is quite genius when you think about it. Farmland, unlike stocks and Walmart, is finite–there will never be any more of it.
In this FarmTogether review, we will discuss what the platform is and why investing in farmland could turn out to be the best investment decision you’ll ever make.
Why Invest in Farmland?
It’s a good question, however, when confronted with other more attractive investment opportunities, farmland seems dull and boring. And not profitable.
But farmland is a sound investment. Ask billionaires Warren Buffett, Bill Gates, Michael Burry and Jeff Bezos about it.
Bill Gates is the largest private owner of farmland in America. Bezos owns about 420,000 acres. Michael Burry has stated that the little investing he does is focused on farmland and it accounts for a significant portion of his net worth. And Buffett compares farmland to gold and Bitcoin as a great investment.
But this doesn’t mean that much. Most of us aren’t Bill Gates or Warren Buffett. We can’t throw our money around and see what happens–we need to be smart with our money.
Let’s check the numbers.
A Look at the Numbers
Over the last few years, land appreciation has performed remarkably well. Farm real estate values went up 12.4% in 2021 and 20.3% in 2020. This is incredible given the uncertainty plaguing the US:
- COVID-19 pandemic
- High-interest rates
- Inflation rising
Despite this, farmland investors still had a solid 2022–outperforming the S&P 500 by 30-40%.
But it could be argued that this proves nothing. It’s just a couple of years, maybe farmland was hot then. So let’s widen our study.
Over the last 20 years, farmland has offered average returns of 12.24%. If you invested $10,000 in 2000, you would now have over $96,149.
Sure, farmland is a great way to diversify your portfolio. But with numbers like this? It may need to take up a larger chunk.
And FarmTogether is the place to do just that.
FarmTogether Review – Should I Invest in Farmland?
FarmTogether gives you the opportunity to add to your portfolio through three options: crowdfunded offerings, bespoke offerings (sole ownership) and a sustainable farmland fund. All of these are a passive investment for the long term.
“We think farmland as an investment is something that in 10 to 20 years will be a must in any professionally managed diversified portfolio,” said Artem Milinchuk, founder of FarmTogether. “We are excited to be at the forefront of the rapid change in this exciting new market.”
Costs and Fees
FarmTogether has a minimum investment of 15,000. Additionally, the platform has fees but they are usually below 2%. Here’s how they work:
- Crowdfunded farmland offerings – This option comes with a 1-2% one-time admin fee, 1-2% annual fee and a 5% net operating fee.
- Sole ownership – 2% one-time admin fee and a 1-2% annual management fee.
- Sustainable Farmland Fund – 2% acquisition fee, 1.25% annual management fee and a 15% incentive fee over a 6% cumulative hurdle rate.
How Does FarmTogether Compare?
A competitor of FarmTogether is AcreTrader. Naturally, the two opponents have many similarities but they differ in a few ways.
First, AcreTrader has a lower minimum investment ($10,000) and lower annual fees. AcreTrader also doesn’t just buy land hoping its value will increase. They actively employ new technology and advise farmers on how to maximize their profits.
But don’t decide against FarmTogether just yet.
One advantage of FarmTogether is that the platform does all the work for you. All you have to do is invest your money and sip on your drink of choice while the returns come in.
The Features of FarmTogether
To expand on how FarmTogether compares with its competitors, here are a few other features that make FarmTogether stand out:
- Learning center – FarmTogether provides educational resources including investment overviews, blogs, webinars and whitepapers.
- Multiple investing paths – As stated, FarmTogether offers three distinct ways to invest. This variety is hard to come by with other platforms.
- Pleasing platform – FarmTogether offers a platform that is easy on the eye and easy to navigate.
- Easy to signup – Most sites seem to want to know your life story in order to sign up. They make it difficult, if not impossible, to get registered. FarmTogether, however, enables you to sign up in minutes.
Conclusion
FarmTogether is for investors who want to employ a hands-off approach and passively earn income via farmland. If you want to invest like America’s most notable billionaires–and have $15,000 to spare–FarmTogether is the way to go.
Currently, however, they do not accept non-accredited investors. But for those of you that are accredited, you can sign up for FarmTogether here
