Buying land has long proven to provide slow and stable returns. FarmTogether offers an opportunity to invest in American farmland, where returns have historically exceeded inflation by an average of 6.1% per year over the last half-century. The U.S. company also allows clients to put money into sustainably-certified operations only.
“We think farmland as an investment is something that in 10–20 years will be a must in any professionally managed diversified portfolio,” said Artem Milinchuk, FarmTogether founder. “We are excited to be at the forefront of the rapid change in this exciting new market.”
As investment in farmland continues to emerge as a worthwhile and profitable financial opportunity, people are looking to FarmTogether as a popular alternative to traditional methods such as stocks, bonds, and even gold.
With inflation nearing 10%, farmland has already risen about 14% in the first half of 2022.Â
The company offers three separate ways to add to a land portfolio:Â
- A sustainable fund, a diversified portfolio rather than a single allocation
- Bespoke sole ownership
- Crowdfunded offerings for fractional shares of farmland
A team of managers focuses on each investment, which has a minimum amount of $15,000. All clients must be accredited, meaning a certain income, net worth, and investing experience are required.
FarmTogether is banking on strong crop prices and land value to continue bringing significant returns. But with American cropland already valued at an average of $5,050 an acre — up $630 an acre from a year ago — and a historical increase of at least 5% a year, it’s a commodity that is likely to become a vital part of diversifying personal wealth.Â
Currently, $26 billion worth of U.S. farmland is managed or owned by institutions. This type of low volatility is vital to smart long-term investing.
Recently, the company opened up the opportunity to put money into eco-friendly acres through its Sustainable Farmland Fund. It focuses only on certified sustainable operations on land with permanent and row crops, including citrus, tree nuts, and apples. The fund has targeted growth of 8 to 10% annually.
“We are pleased to offer investors access to a diversified fund of sustainable farmland investment properties through the FarmTogether Sustainable Farmland Fund,” said David Chan, FarmTogether COO. “Through this product, we hope to increase ease and accessibility for investors who prefer a hands-off diversified approach to real asset strategies and impact investments, such as sustainable farmland.”