INTRODUCTION

Farmland investing involves the purchase and ownership of agricultural land for the purpose of generating income and capital appreciation. It is an alternative investment strategy that offers diversification, long-term stability, and potential returns for investors. By acquiring farmland, investors can participate in the agricultural sector and benefit from the essential need for food production.


best Farmland investing platforms

1. FARM TOGETHER



FarmTogether is a platform that allows accredited investors to invest in individual farmland properties. The minimum investment is \$10,000. FarmTogether vets and selects the farmland properties that are offered on its platform. The company also manages the properties and collects the rent on behalf of investors.


FarmTogether was founded in 2017 by a team of experienced entrepreneurs and investors. The company is headquartered in New York City.

some features include:

  1. A curated marketplace: FarmTogether vets and selects the farmland properties that are offered on its platform. This ensures that investors are investing in high-quality properties with good potential for returns.
  2. A low minimum investment: The minimum investment on FarmTogether is \$10,000. This makes it possible for accredited investors to invest in farmland even if they do not have a lot of money to invest.
  3. A simple and easy-to-use platform: FarmTogether's platform is designed to be simple and easy to use. Investors can quickly and easily browse the available properties, make investments, and track their returns.

 

2. THE SOCIABLE ( Landis)


Landis is a platform that allows accredited investors to invest in farmland through tokenized securities. A tokenized security is a digital asset that represents ownership in a real-world asset, such as farmland. Landis uses blockchain technology to tokenize farmland, which makes it possible for investors to buy and sell fractional shares of farmland. Landis was founded in 2018 by a team of experienced entrepreneurs and investors. The company is headquartered in New York City.

Here are some of the features of Landis:

  • Invest in farmland through tokenized securities: Landis allows investors to invest in farmland through tokenized securities. This makes it possible for investors to buy and sell fractional shares of farmland, which can be a more affordable way to invest in farmland.
  • Low minimum investment: The minimum investment on Landis is \$10,000. This makes it possible for accredited investors to invest in farmland even if they do not have a lot of money to invest.
  • Transparent investment process: Landis is committed to transparency. The company provides investors with detailed information about the farmland that is tokenized on its platform, as well as information about the investment process.
  • Blockchain technology: Landis uses blockchain technology to tokenize farmland. This makes it possible for investors to buy and sell fractional shares of farmland, and it also makes the investment process more transparent.

3. CROWDFARM



CrowdFarm is a platform that allows accredited and non-accredited investors to invest in farmland through a crowdfunding platform. The minimum investment is \$100. CrowdFarm vets and selects the farmland properties that are offered on its platform. The company also manages the properties and collects the rents on behalf of investors.

CrowdFarm was founded in 2016 by a team of experienced entrepreneurs and investors. The company is headquartered in London, England.

Here are some of the features of CrowdFarm:

  • Invest in farmland through crowdfunding: CrowdFarm allows investors to invest in farmland through crowdfunding. This means that investors can invest in small amounts of farmland, starting at \$100.
  • Low minimum investment: The minimum investment on CrowdFarm is \$100. This makes it possible for investors to invest in farmland even if they do not have a lot of money to invest.
  • Diversified portfolio: CrowdFarm offers a diversified portfolio of farmland properties. This means that investors are not exposed to the risk of investing in a single property.
  • Transparent investment process: CrowdFarm is committed to transparency. The company provides investors with detailed information about the farmland properties that are offered on its platform, as well as information about the investment process.

Here are some of the advantages of farmland investment:

  1. Diversification: Farmland is a real asset, which means that it is an investment that you can touch and see in person. As a result, it's an efficient way to spread out your investment portfolio and lower risk.
  2. Appreciation: Farmland tends to increase in value with time, so if you decide to sell it in the future, you could profit. Over the past 50 years, farmland prices have increased at an average yearly pace of 3.6% in the United States.
  3. Farmland can earn money by renting it out or by growing crops: You possess the decision of renting your farmland to a farmer or selling it to a developer of a solar or wind farm. On your property, you can also grow agricultural products that you can sell to a neighborhood market or a large food distributor.
  4. Benefits from owning farmland in terms of taxes: Owning farmland has a number of tax advantages. Depreciation costs and agriculture expenses are two examples of possible tax deductions.
  5. Insurance against inflation: Farmland is considered as a good inflation hedge. This indicates that it tends to appreciate in value at a pace that is either similar to or greater than the rate of inflation. This can shield your investment from inflationary penalties.

How to Invest in Farmland

 Start by conducting thorough research on the farmland market and potential investment opportunities. Consider factors such as location, soil quality, local regulations, and market trends. Engage with experts, such as agricultural consultants or real estate agents specializing in farmland, to gain insights and guidance.

1. Define Investment Objectives: Clearly define your investment objectives, whether they are focused on income generation, capital appreciation, or a combination of both. This will help guide your decision-making process and investment strategy.

2. Financial Planning: Assess your financial capabilities and determine the amount of capital you are willing to allocate to farmland investments. Consider the costs associated with land acquisition, ongoing maintenance, property taxes, and potential additional investments in infrastructure or improvements.

3. Seek Professional Advice: Consulting with professionals who specialize in farmland investments, such as financial advisors, attorneys, or agricultural experts, can provide valuable guidance and ensure compliance with relevant regulations.

4. Portfolio Allocation: Determine the appropriate allocation of farmland within your investment portfolio. Consider factors such as risk tolerance, desired returns, and overall asset diversification. Balancing farmland investments with other asset classes can help achieve a well-rounded portfolio.

5. Identify Investment Opportunities: Once you have defined your investment criteria, actively search for farmland opportunities that align with your objectives. Consider factors such as location, soil quality, lease terms, potential for value appreciation, and the stability of the local agricultural market.

6. Due Diligence on Properties: When evaluating potential farmland properties, conduct thorough due diligence. This includes assessing the property's soil quality, water availability, infrastructure, environmental sustainability, and any existing lease agreements. Engage professionals, such as soil scientists or surveyors, to evaluate the property's suitability for your investment goals.

7. Lease Agreements and Management: Establish clear lease agreements with tenants or engage professional farm managers to oversee operations. A well-structured lease agreement should outline responsibilities, rental terms, and any specific provisions regarding maintenance, insurance, or crop selection.

8. Monitor and Evaluate: Regularly monitor and evaluate the performance of your farmland investments. Stay informed about market trends, crop prices, and any changes in local regulations that may impact the investment's profitability. Adjust your strategies accordingly to optimize returns.

9. Long-Term Perspective: Farmland investments are typically long-term in nature. Embrace a patient and strategic approach, understanding that agricultural cycles may experience fluctuations over time. By maintaining a long-term perspective, you can capitalize on the stability and potential growth of this asset class.