As a real estate investor, it is necessary to diversify your portfolio across various asset classes to minimize investment risks. Platforms like FarmTogether can help you achieve this by investing in profitable farmlands. Read my review for details.
When we think about investing in real estate, the main asset classes that come to our minds are rental properties, fix-and-flips, or commercial estates. However, have you ever thought of diversifying your portfolio through farmland investing?
The truth is, farmland investments have outperformed all other real estate asset classes in the past years. These investments bring almost 12% more in annual returns compared to other options from their league.
Besides that, with increasing mouths to feed every year and the vivid depletion in agricultural land, investment opportunities are speculated to rise in this sector. But, how to invest in farmland without farming if you don’t want to participate actively in operation?
That’s where platforms like FarmTogether come in. Read through my comprehensive FarmTogether review to get all the information you need to step into the industry.
If you’re a real estate investor looking to invest in American farmland but are concerned about taking the first step, or a stocks and bonds focused investor looking to diversify your portfolio and branch out to alternative assets, you’re in the right place.
Although there are many online platforms that enable land beginners to invest in farmland without any hassle, only a few are legit and provide profitable opportunities.
You see, farmland investing involves holding your investment for long periods until you get your first return. If you fall into a scam while looking at how to invest in farmland, you’ll end up wasting your time and, worse, losing your investment.
However, you don’t need to worry about that. I shortlisted some of the best farmland investment platforms available and assessed them across multiple aspects. In the end, I was left with one of the best options for serious investors who want good annual returns.
So, is FarmTogether safe and worth your time? Read through my detailed FarmTogether review to find out.
Table of Contents
What is FarmTogether?
If you’ve already searched for ‘FarmTogether’ on the internet, you might be quite confused. That’s because most of the search results show a mobile game that was recently released bearing the same name.
However, FarmTogether is a relatively new online real estate crowdfunding company founded in 2017. The owner himself initiated developing a platform solely for farmland investments when he got frustrated finding the right option for himself.
If you’re familiar with other popular online crowdfunding sites like Fundrise and Realty Mogul, FarmTogether is more or less the same. However, while each crowdfunding site concentrates on a specific asset class, FarmTogether funds agricultural landowners and promotes sustainable farming technology.
The platform offers passive investment options for accredited investors to create a steady income stream from farmland. If you’re interested, I’ve explained how the site works in the next section of my FarmTogether review to help you out.
How Does FarmTogether Work
When you think of investing in farmland without actually operating it yourself, the first thing that comes to mind is rental income. You acquire farmland of your choice and rent it out to farmers for monthly or annual revenue.
While this method might work wonders for experienced investors, there are two serious flaws in this plan. Firstly, purchasing farmland by yourself means putting in a huge investment.
Secondly, as the sole owner, you’ll be carrying the entire risk of the farm operation. Meaning, you’ll need insights into the water supply, soil condition, and the crops you’ll allow to grow on your farm.
FarmTogether works to eliminate these risks for investors and bring you hassle-free farmland income. The company works as a middle person between you and the farm operators.
All you have to do is pool in your money and receive annual dividends through land appreciation, rental income and harvest returns. The company holds each property for at least seven to ten years, so you can earn flawless income over a long period.
For additional security, FarmTogether heavily vets the operators and only selects top-tier farmers to run the land. They have a few key partners who are top operators in the space and who are able to regulate the farm on a large scale to maximize growth and yield.
This means any offer you choose from the platform will provide significant yields and investment stability.
How to Sign-Up for Farm Together
One of the aspects I love about FarmTogether is its accessible sign-up process. Although it requires you to provide certification as an accredited investor, you can become a member from anywhere in the world.
When you select the sign-up option on their website, the platform will conduct a brief profile survey. This survey will include questions about your financial situation and your investment preferences.
Once you’re a member, the platform will use these details to recommend appropriate investment options for you. After answering the questions, you’ll have to fill in some basic details about yourself.
This includes your name, contact, age, social security number, and your verification as an accredited investor. Besides that, the platform will also require some tax documents, so make sure you have them ready when you decide to join.
Similarly, you will have to link your bank account to the platform so that all your transactions can be conducted flawlessly online. Once all the boxes are filled, the site will require an email verification from your side, after which you will become a member of FarmTogether.
Although the process sounds quite tedious, it’ll take less than ten minutes to complete if you have all your documents in hand. Besides that, the website is catchy and user-intuitive, so you can easily find your way around.
Who is FarmTogether for?
Unfortunately, although FarmTogether sounds like an attractive portal for easy farmland investments, it is not available for everyone. That’s because even though farmland investments bring great returns, they are equally risky.
That’s why the platform only lets investors join if their financial condition and investment portfolio are stable enough to manage the potential risks involved.
However, if you are an accredited investor, you can easily join FarmTogether and diversify your portfolio through farmland investments.
Mainly, your individual income to enter FarmTogether should be at least $200,000. If you’re filing for a joint income with your spouse, it should be more than $300,000.
Or, if you choose to sign-up using your net worth details, your net worth should be at least $1 million, excluding the value of your primary residence.
Pros of Farm Together
Now that you’ve been through the basic details about FarmTogether, you’re probably ready to make your decision about joining the platform.
Before you finalize your decision, here’s a list of benefits you’ll get on the platform to help put things into perspective for you.
Diverse Asset Class
If you’re an accredited investor looking to safeguard your portfolio across various asset classes, FarmTogether is a great option for you.
The platform lets you invest in a unique asset class with a stable record of regular high returns.
Experts in the agriculture field manage the platform. This way, even if you have minimal knowledge about farmland investments, you can safely invest your money and earn good returns.
Low Minimum Investments
As far as investment options for accredited investors go, FarmTogether lets you join with the lowest minimum investment. Initially, you just have to invest $15,000 to earn stable annual returns.
Through FarmTogether, investors can participate in various kinds of farmland funds to diversify their portfolios.
Ample Investment Choices
FarmTogether has a wide range of investment options to choose from. You can choose from permanent, row crop, and organic redevelopment opportunities as well.
Socially-Responsible Investment Options
If you’re interested in investing in sustainable businesses, FarmTogether offers many socially responsible investment options as well.
These include farms working to reduce their carbon footprint and others following the UN Principles of Responsible Investment for Farmland Investing.
The platform has a well-organized and user-intuitive website that lets you check relevant offerings and track your investments easily.
Secondary Liquidity Coming
FarmTogether has already rolled out a secondary liquidity pilot test and plans to offer liquidity options for all offerings.
Cons of Farm Together
After going through the benefits of FarmTogether, accredited investors are probably ready to jump in. However, check this list of the disadvantages to FarmTogether to see if it is the ideal option for you.
Only Allows Accredited Investors
If you’re a beginner who wants to earn revenue from farmland investments with minimum initial investment amounts, FarmTogether is not for you.
As I mentioned, FarmTogether was founded in 2017. This is relatively recent compared to other investment platforms, so there’s a very little track record of the platform to depend upon.
Few real estate farmland options of FarmTogether use debt to fund their projects. Although using debt as leverage can bring good returns, it is too much of investors’ risk.
Key Features of FarmTogther
After providing a clear representation of FarmTogether, it’s time for the detailed section of my FarmTogether review. This section will walk you through each of the platform’s salient features so you can ultimately decide whether it is right for you or not.
FarmTogether Property Types
Mainly, the property options on FarmTogether are farmland investments. However, these options belong to one of the following three categories.
These offerings include farmlands that grow American staple crops such as corn, soybean, and wheat. In these cases, FarmTogether chooses farms that have long-term investment opportunities in areas with minimal risks of climate change.
Farmlands with specialty crops grow almonds, pecans, and grapes. These are mainly food items that are slowly gaining preference amongst middle-class families. They bring high returns but are riskier investments than rote crops.
This asset class includes farms that incorporate socially responsible and environmentally sustainable practices.
For example, a farm that grows a cover crop to reduce carbon emissions or targets the inclusion of women in the leading operation roles.
FarmTogether Fees and Minimum Investment
FarmTogether charges a nominal fee from investors to cover the expenses of the management of the investment offerings. Typically, the fee varies with each offering but stays within 0.5% to 1%.
Besides these incurred expenses, the platform charges an annual 1% from your returns as a management fee. However, you don’t have to pay any capital gains fee on their offerings.
As far as the minimum investment limit is concerned, the platform does not label its offerings with a specific price tag. Instead, you can suggest how much you want to invest in each project.
You can start by investing $15,000 or even purchase entire projects if you’re interested. According to your investment amount, you will partially own some acres from the respective property, which will determine your annual returns.
FarmTogether Investment Size Calculator
The investment size calculator is another interesting feature of FarmTogether. To provide realistic expectations to their investors regarding each offering, the platform has an investment size calculator to help estimate your returns.
Besides that, the platform displays the results in a colorful and easy-to-read graph format so you can easily check the speculated performance before parting with your money. Remember, these numbers are mere estimates and do not display the exact returns you will receive.
However, as a beginner in this particular asset class, the calculator helps you get a clear idea about your investment.
FarmTogether Learning Center
Even if you are an accredited investor, you might want some additional guidance before jumping into an entirely new asset class. That’s why the comprehensive learning center on FarmTogether is one of the most attractive features available on the site.
Upon clicking on the section, you will be directed to a resource page with neatly organized materials to read and learn. If you’ve never invested in farmland before, the whitepaper section will help you get a resourceful introduction to the industry.
Similarly, if you’re looking for fresh updates and trends regarding the industry, you can refer to the blog posts regularly updated on the site.
Besides that, if you’re looking to streamline your strategy and learn extensively about a topic from experts, you can go for the podcasts and webinars available.
Another accessible tool is their detailed FAQ page. You can refer to the section if you have a specific query while operating the website or tracking your investments. Just click on the question you have in mind and get a detailed response within seconds.
FarmTogether Customer Support
One aspect I look for in every investment platform is customer support. Luckily, FarmTogether provides explicit contact details where customers can reach them with emergency queries.
You can either email them through the address provided or call the platform directly and speak with a representative.
Ease of Use – 4 / 5
Customer Support – 5 / 5
Value for Money – 4 / 5
Features – 4 / 5
Should You Go For FarmTogether?
Concluding my FarmTogether review, it is evident that the platform is a completely safe and legit option for those who want to invest in farmland.
Along with profitable investment offerings and socially responsible options, the platform thoroughly vets and underwrites each property before displaying it to investors.
Besides that, the platform uses professional agricultural experts to manage their properties which ensures stable returns on investment.
So, if you’re an accredited investor looking to diversify your portfolio by participating in a new asset class, FarmTogether is the ultimate option for you.
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