FarmTogether is a farmland investment manager based in the US that enables unparalleled access to instituitonal-quality farmland opportunities through a variety of channels, including crowdfunded farmland offerings, 1031 exchange, sole ownership bespoke offerings, and their Sustainable Farmland Fund. Though their all-in-one platform, investors can browse top-notch deals across different crops, geographies, return profiles, and management structures to fit a range of portfolio needs. Although the platform was only launched in 2017, it has already built a name for itself as a top investment platform. FarmTogether has already completed more than 40 deals across 7 states and 14 crop types and has more than $160 million in assets under management. However, only accredited investors are allowed to invest with the platform.
- 4 ways to invest – sole ownership from $1 million onwards, crowdfunded farmland offerings for a minimum of $15,000, 1031 exchanges, and the Sustainable Farmland Fund for $100,000
- Attractive returns on investments – FarmTogether targets deals with net IRRs of of between 6% to 13% and net cash yield of 2% to up to 9%.
- Highly selective process for investments – only 1% of all deals reviewed make it to the platform, helping to ensure that all deals available are top quality.
- Historically lower risk compared to other investments – standard deviation for farmland investments from 1992-2021 was just 6.75% compared to 16.89% for the S&P 500.
- Only accredited investors – you must have an annual income of at least $200,000 per year for the past two years or a net worth of over $1 million
- High minimum investment – the minimum sum you must invest is $15,000. This may be too hefty for small investors and newbies in the investing world.
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How Does FarmTogether Work?
FarmTogether seeks to make farmland more accessible by providing accredited investors with top-tier, institutional-quality farmland offerings and a hassle-free fully digital investment experience.Like real estate, farmland is often dependent on long-term contracts in order to generate recurring rental income and build wealth over the long term. In many cases, it can take several years before crops on a specific farm, such as an almond orchard, reach full maturity. That’s why they prefer to go with accredited investors instead of non-accredited ones.
FarmTogether’s working process is extensiveand effective. Through a combination of strategic partnerships and their proprietary sourcing technology, FarmTogether is able to access both on- and off-market investments. The team at FarmTogether maintains strict criteria to find the best farms in the prime production regions of the US.
Only 1% of opportunities that are screened are ultimately shown to potential investors.
The company targets both permanent crops (e.g. wine grapes, tree nuts, and citrus) and row crops (corn and soybeans), focusing on prime growing regions in the US, such as the pacific northwestCalifornia, and the Midwest.
These areas ensure:
- Suitable weather condition
- Prime soils
- Excellent water supply for production
Once FarmTogether locates farms that meet their standard requirements, they will purchase that farm from the seller. Once a a deal is done between the owner and FarmTogether, they’ll put the farm into their platform for individual investors like you
Investing in a Farm
Within the FarmTogether portal, investors are able to browse carefully vetted farmland investments, review due diligence materials, and sign legal documents, seamlessly online.
Once an investment is confirmed , investors should expect toreceive a share of their chosen farm as an investor, The amount of shares you’ll hold depends on how much you invest in this real estate, unless you choose to invest in a sole ownership bespoke offering.
It’s worth mentioning that you’ll be allowed to go through:
- Potential risk/return profile,
- Fee and ownership structures
- On-farm sustainability practices
- Every legal document
- The targeted net IRR of the entire project
- Target net cash yield
- And more
After you invest in a farm, you’ll get partial ownership proportional to the percentage of your share. You should receive incomethat comes through rental payments and farming operations during your ownership of the farm. The investing period is around 8 to 12 years, give or take.
A unique and exciting feature of FarmTogether is that the website offers excellent education and insights in investing in agricultural real estate like farmland, as well as a range of other investing topics. So even if you’re not familiar with the farming industry or don’t have enough agricultural knowledge, you’ll find FarmTogether resources helpful.
How Much Can You Earn with FarmTogether?
Your returns ( income + appreciation) through the investment will largely depend on how much you’ve invested. But from the recent deal statistics, it’s safe to say that FarmTogether provides around 6 to 13% of cash return.
Depending on your annual net payout and investment, the cash yield that an investor can receive is somewhere between 2 to 9%.
|Average cash yield
|6% – 13%
|2% – 9%
Who is FarmTogether Best For?
- Long-term investors. Investors looking for high-yield passive income from their investments
- Those who want to help diversify their portfolio
- High Net worth Individuals. Individuals who want to help grow their wealth using real estate investment
- Risk-averse investors. Those who looking for potential supplemental income and a historically low-risk investment
FarmTogether Fees: How Much Does it Cost to Invest with FarmTogether?
The FarmTogether fees will depend on the type of investment and deal you’ll make with FarmTogether.
FarmTogether doesn’t keep you in a hazy position – once you pick up a plan, they will provide you with all the fees you’ll need to pay.
But in general, there are two fees that you need to pay for every FarmTogether deals:
|Annual asset management fee
|1% – 2%
|1% – 2%
For permanent crops, FarmTogether additionally charges a 5% net operating income fee. For row crops, investors will pay an operating fee equal to 20% of gross lease revenue annually.
FarmTogether Features: What Does FarmTogether Offer?
FarmTogether Learning Center
Even if you are an accredited investor, you might want some additional guidance before jumping into an entirely new asset class. Thankfully, FarmTogether has a comprehensive learning center with lots of information to provide you with guidance, including blogs, white papers, podcasts, webinars and more
FarmTogether Investment Calculator
The investment size calculator is another important feature of FarmTogether. To provide you with realistic expectations regarding each offering, the platform has an investment size calculator to help estimate your potential returns.
In addition, the platform displays the results in a colorful and easy-to-read graph format so you can easily check the performance before investing your money.
Crowdfunded and Sole ownership options
With FarmTogether, you can invest in crowdfunded assets, a diversified fund, or own an entire farm yourself.
The FarmTogether Investor Dashboard
FarmTogether’s dashboard makes it easy to invest in farmland without doing your own due diligence or needing any farmland management experience. Investors can find intuitive information on both funded and available farmland investment opportunities..
Besides that, the dashboard shows you detailed information on cash rent, taxes, land value appreciation, and input costs. You can browse your investments, review necessary documents and materials, sign legal documents, among more.
FarmTogether adheres to the SEC’ss strict requirements you need to meet to become an accredited investor. These requirements ensure that the investors are financially stable and a failsafe.
To invest in FarmTogether properties, you’ll need to be:
- An accredited investor
- Have a net worth of at least $1 million
- Or can make $200k per year (or $300k if your filing jointly)
You can also become a FarmTogether investor if you hold series 7or series 82 licenses.
FarmTogether Payout Terms and Options?
Depending on the investment product, management structure, and crop type , FarmTogether aims to distribute returns quarterly, semi-annually, or annually. The payment procedure is also convenient as FarmTogether will deposit your funds directly to your bank account.
FarmTogether Risks: Is FarmTogether Safe to Invest with?
Like all forms of investments, FarmTogether has its own risks. You should, therefore, review the risks under the associated disclosure documents. If the potential loss will render you financially unstable, or you are unwilling to accept the potential loss of capital you have invested, it’s not recommended to invest.
How Does FarmTogether Protect Your Money?
As an investor, you have legal ownership in the LLC independent of FarmTogether. In the event of the company’s bankruptcy, FarmTogether will aim to secure an external manager to continue to operate the LLCs based on the existing agreements. This way, they can protect your investments.
Liquidity is tied to the sale of assets. As a result, FarmTogether’s ability to sell properties in response to changing economic, financial, and investment conditions may be limited.
FarmTogether Reviews: Is FarmTogether Legit?
FarmTogether is legit company that allows you to invest in farmland across the US. While FarmTogether does consumer reviews on major platforms like Trustpilot, BBB or G2, it has completed more than 40 funded deals as of now.
There was a 22 million deal that set the record in the crowdfunded farmland industry, as the most significant single asset crowdfunded investment to date.Moreover, FarmTogether is a proud member of the silicon valley’s organization, Franklin Templeton-backed EvoNexus Fintech Incubator.
FarmTogether also partners with Farmland Opportunity, one of the leading corporations in the farming industry.
What are the FarmTogether Pros & Cons?
- Provides the option to invest in crowdfunded deals, a diversified fund, or have sole ownership to access institutional-quality farmland opportunities across the US.
- Has investment calculators to help you project potential returns and make decisions.
- Farmland has an excellent track record of historically strong returns and low risks.
- Only available for accredited investors.
- $15,000 starting investment seems a bit too much for small investors.
How Good Is FarmTogether Support and Knowledge Base?
FarmTogether boasts a comprehensive support and knowledge base, including whitepapers, frequently asked questions page, webinars, blogs, podcasts and more on the website. You can also contact them via email@example.com or schedule a call with an investment relations specialist.
FarmTogether Review Verdict: Is FarmTogether Worth it?
FarmTogether can be considered a trustworthy company worth investing with. It can be an especially excellent choice if you’re an accredited investor who’s looking for a long-term investment that can help diversify your portfolio, minimize portfolio volatility and generate relibale passive income. The diligence process, management team, and investor experience of FarmTogether are top-notch. And they also provide some of the best deals available on the market.
Depending on your investment, you have the potential to receive a cash yield of between 2 to 9%. Finally, investing in FarmTogether can also be a good addition to your investment strategy to diversify your assets and get the most out of your investments.
How to Invest with FarmTogether?
The investing process with FarmTogether is straightforward and convenient. Here are the steps you need to follow to invest with FarmTogether:
Step 1: Signing Up For An Account
Visit the FarmTogether website and click the ‘Sign Up’ button at the web page’s top right.
Or you can click on the ‘Get Started’ button on the homepage, which will also lead you to the sign-up screen.
Step 2: Answering the Questions
Once you’re redirected to a sign-up page, you’ll need to answer a series of questions, such as:
- Why you are interested in investing through FarmTogether
- And whether you meet the application criteria.
Step 3: Verifying Your Account
After you’ve answered all the questions, you’ll get to a page where you need to enter your name and email address. Once you put in your information, FarmTogether will send you a confirmation email with a verification code.
Simply enter the code to verify your account so you can browse FarmTogether’s listings.
Step 4: Investing
When you find a suitable listing, you can invest in that listing by simply clicking on the farm’s details. Now, you just need to provide your bank details so that FarmTogether can validate you.
The minimum amount that you can invest in FarmTogether is $15,000.
How to Sign Up with FarmTogether?
- Go to the homepage
- Click join today
- State your interests and continue
- Specify what type of investor you are and state how soon you can invest
- Enter your name and email address
- Agree to the terms.
- Verify your email and start using the platform
Sites Like FarmTogether
|One-time upfront fee: 1%-2%, Annual management fees: 1%-2%, Net operating fee dependent on product offering
|Fees $3-$5 /month
|A flat fee of 1% per year
FarmTogether vs. Arcons
Acorns is an investment app that allows you to invest your spare change. While both platforms provide you with investment opportunities, Acorn’s main focus is spare change compared to FarmTogether which allows you to invest in farmland. In terms of fees, Acorns charges $3-$5 /month compared to FarmTogether Upfront fee- 1%-2%, Annual asset management fees – 1%-2%.
Acorns also has a minimum investment of $5 compared to FarmTogether’s minimum of $15,000. In addition, Acorns lets you invest in a diversified portfolio of over 7,000 stocks and bonds and automatically rebalance your portfolio and reinvest dividends. Acorns is suitable for beginner investors while FarmTogether is for long-term investors.
FarmTogether vs. Fundrise
Fundraise is the most popular competitor of FarmTogether. The company is known for the variety of real estate deals across the United States. Unlike FarmTogether, Fundrise doesn’t focus on farmland investments only – you’ll find different types of properties out there. Plus, Fundrise allows non-accredited investors to invest with as low as a $500 deposit.
FarmTogether vs. Public App
Public App is a free investing app that offers fractional investing with no commission fees or account minimums. While FarmTogether allows you to invest in farmland, Public App lets you buy, sell your own stocks.
As for fees, Public App is a commission-free tool to use in terms of fees compared to FarmTogether which charges an Upfront fee- 1%-2%, Annual asset management fees – 1%-2%. Unlike FarmTogether, the Public App is best for fractional shares and beginner investors. Public App also has a mobile app, something FarmTogether lacks.
FarmTogether vs. EquityMultiple
Another well-known alternative to FarmTogether is EquityMultiple. This real-estate platform focuses on commercial real estate and farmlands alike. But unlike FarmTogether, EquityMultiple is better suited for expert investors because it doesn’t provide many educational resources.
FarmTogether vs. AcreTrader
AcreTrader is the most similar crowdfunded real estate platform to FarmTogether. Unlike other alternatives, this platform solely focuses on farmlands. Like FarmTogether, AcreTrader also accepts only accredited investors. However, AcreTrader has a minimum investment threshold of $10,000 and charges a 0.75% annual management fee.
Other Sites Like FarmTogether
Alternative Investment Sites
Is there a FarmTogether app?
While FarmTogether doesn’t have an app, it has a mobile-optimized website, giving users the same features and capabilities as its desktop site.
How can I invest in a portfolio of farms?
If you’re looking to invest in a portfolio that provides diversified allocation across multiple properties, the Sustainable Farmland Fund might be the option for you.
Can I invest my pension with FarmTogether?
You can use your custodian or the company’s fully integrated partner Alto IRA to transfer your funds within minutes.
How does FarmTogether make money?
As one of the best places to buy farmland real estate, FarmTogether makes money by charging a one-time fee for putting each deal together, plus annual management fees for all of the projects that it manages and a net operating income fee.
What sets FarmTogether apart?
FarmTogether makes it easy for investors to invest in real estate without having to do their own due diligence and farm management.
FarmTogether extensive due diligence process includes confirming water rights and quality, environmental compliance, and title, along with testing soil and crop production.