Accessible investing in a stable asset

In recent decades, farmland has demonstrated its value as a safe-haven investment, consistently performing well amid market volatility. It can also be a strong hedge against inflation: Since 1992, U.S. farmland has generated returns more than double the inflation rate and tends to retain or sometimes even gain value when the stock market is shaky.

The asset class has traditionally only been available to institutions and ultra-high-net-worth individuals with millions of dollars, keeping farmland out of reach for retail investors. FarmTogether is changing this, enabling further accessibility and introducing a variety of investment vehicles suited to fit investors’ unique goals and financial needs.

With the market volatility we’ve seen over the past two years — and aftershocks that could last for years to come — investors are looking for ways to diversify and hedge their portfolios against inflation, corrections and recessions. Because it’s not tied to the stock market, farmland could be your way to do that.

Farmland is a commodity-producing asset and strongly correlated with the Consumer Price Index, rather than the stock market. Through FarmTogether, you can make a direct investment in farmland that can protect your portfolio against market volatility while driving abundant and creative capital to farmers, funding their transition to sustainable operations.

Plus, you get to benefit from the profits in this sector without putting your hands in the dirt.

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What is The Sustainable Farmland Fund?

The Sustainable Farmland Fund is FarmTogether’s new fund that provides investors with access to Leading Harvest-certified sustainable farmland.

The Leading Harvest Certification uses third-party audits to measure outcomes-based evidence and verify land and farming practices as sustainable. All of FarmTogether’s farmland assets under management are Leading Harvest certified.

It’s true that agricultural ETFs can work for investors seeking exposure to the short-term price action in agricultural commodities, primarily row crop and livestock prices.

“The FarmTogether Sustainable Farmland Fund, on the other hand, offers investors long-term exposure to both row crops and permanent crops … as well as exposure to the real property itself,” said David Chan, FarmTogether COO and founding team member in an email to MoneyWise.

“The fund will provide investors with passive income from both net operating income (crop sales) and rental income, whereas ETFs do not have this advantage.”

The Sustainable Farmland Fund will invest in farmland properties and operations around the U.S., with a heavy focus on permanent crops, such as tree nuts, citrus and apples. It will target sustainable farmland in California, Washington, Oregon, the upper Midwest and a small portion in Arizona and Oklahoma.

How it works

FarmTogether’s Sustainable Farmland Fund is separate from its crowdfunding product, which enables you to choose the crop, geography, location and overall farmland opportunity you’d like to invest in. It’s geared toward investors who prefer a pick-and-choose approach when selecting properties.

The Sustainable Farmland Fund, on the other hand, enables you to invest in a pool of diversified farmland properties via a single upfront capital allocation.

That makes it a hands-off investment for anyone who wants to benefit from the performance of a diversified portfolio of heavily West Coast-based properties.

The Sustainable Farmland Fund is available to accredited investors with a minimum investment of $100,000, whereas the crowdfunding platform is available to accredited investors with a minimum investment of $15,000.

To get started with either product, sign up for FarmTogether with your name and email address.

You’ll be able to choose which products you want to invest through, including Crowdfunded Offerings and the Sustainable Farmland Fund, or their Bespoke and 1031 Exchange programs.

FarmTogether’s Sole Ownership Bespoke program requires a minimum of $3 million and their 1031 Exchange starts at $1 million, geared toward investors who aim to swap an investment or business property to defer capital gains.

Diversify your investments with farmland

You don’t have to own a farm to profit off farmland.

Farmland has proven to be one of the most stable assets of the past few decades — and with FarmTogether, you’re able to invest today. FarmTogether's platform gives accredited investors access to this exciting market, and one of the highest-yielding asset classes on a risk-return basis.

Sign up for FarmTogether to start investing in farmland.

About the Author

Dana Sitar, CEPF®

Dana Sitar, CEPF®

Freelance Contributor

Dana Sitar has been writing and editing since 2011, covering personal finance, careers and digital media. She’s written about work and money for The New York Times, Forbes, CNBC, The Motley Fool, a column for Inc. and more.

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