Introduction to Farmland Investing

How can we help?

  • Investing with FarmTogether

    • What is FarmTogether and how does it work?
      FarmTogether is an online marketplace for farmland investing. We provide investors access to institutional quality US farmland investments. Through the FarmTogether platform, investors have a single platform to browse investments, review due diligence materials and sign legal documents, all securely online. Prefer the personal touch? We’re just one call away
    • Who is the FarmTogether team?
      We are a team of professionals with experience in farmland management, technology, and finance. Our team and partners are cross-industry professionals with over 70 years of experience across farmland investing, agriculture and real estate in the US and globally. You can learn more about us here.
    • Who are your partners?
      We work with a variety of experienced investment managers, farmland brokers, appraisers and advisors to bring you the best deals. One of our key partners is Farmland Opportunity, a farmland investment company with over $400 mln assets under management and a 10-year track record. While Farmland Opportunity works only with larger clients, it chose to partner with FarmTogether to allow more flexible transaction size via our online investment platform.
    • What is the minimum investment size?
      We typically allow a minimum investment of $50,000 per transaction. If you’d like to invest a different amount schedule a call or email us at info@farmtogether.com
    • What happens to my investment if FarmTogether closes?
      Your investment is secured. All investors retain their legal ownership independent of FarmTogether. In the event of our bankruptcy, the entity will be assigned to the external management and will continue to operate per the existing agreement.
    • What are your fees?
      Our fee structure is radically lower than the industry average. We achieve this by designing a self-service online platform, and embracing new farming technologies. Our fees varies for every deal, and are listed on each investment opportunity’s page.
    • How does investing with FarmTogether works?
      Investing through FarmTogether platform is simple and secure. Our platform makes it easy to access all relevant information about an investment opportunity, as well as projected returns and risks. Ready to invest? Fund transfer and document signing is all handled online, with nothing to mail and no wires to send.
    • How are legal documents handled on FarmTogether?
      All required legal document can be signed electronically through FarmTogether platform to provide maximum security of our investors' information. Investments are finalized as soon as legal documents are accepted, funds are received and the overall offering is closed.
    • What kind of properties does FarmTogether target?
      We typically target US row crop farmland (corn, soybeans, wheat, rice, ext.), focusing on locations with the highest crop yield productivity growth, the best relative value, and fragmented, restricted ownership. We look for properties with the potential to increase tillable acres and rental rates through drainage tile, tree or acreage removal, and pooled leasing. We also target premium crops as in, organics, non-GMO, fruits, vegetables and nut trees.
    • What if I want to invest in a single property?
      We generally offer a managed portfolio option that provides diversified allocation across multiple properties. Please contact us at info@farmtogether.com if you are interested in investing in a single property.
    • How do I make my first investment?
      First, you’ll need to set up your FarmTogether account. To begin, click the "Sign Up" button on the homepage. After completing your investor profile, you’ll be able to participate in an investment offering. To make your first investment, simply log in to your FarmTogether account, visit the offering page and then click the "Invest" button. Following that, choose your desired investment amount and then click "Invest". Then you will be asked to sign an electronic agreement. After that, you will be provided with payment instructions.
    • What are the benefits of using FarmTogether?
      FarmTogether makes it easy for investors to invest in farmland without having to do all of the due diligence and farm management work. We provide access that was historically limited and thoroughly underwrite every investment offered on our website. We spend countless hours sourcing farmland investments and allow investors to invest in farmland with affordable investment sizes.
  • Investor Accreditation

    • Who can invest through FarmTogether?
      FarmTogether is built for accredited investors. To quality, you must meet the SEC’s Accredited Investor definitions:
      • Earn an annual income of over $200,000 per year for the last two years ($300,000 per household) with the expectation of maintaining such level of income this current year.
      • Have a net worth of greater than $1 million (individually or jointly), excluding the value of a primary residence.
      • Invest as a bank, insurance company, registered investment advisor, business development company, or small business investment company.
      • Invest as a business in which all the equity owners are accredited investors.
      • Invest as an employee benefit plan, a trust, charitable organization, partnership, or company with total assets in excess of $5 million.
    • Do you offer services for non-accredited investors?
      We are actively researching ways that we can open up our investment offerings to all users, regardless of accreditation status. Please contact us if you would like to learn more.
  • Risk Management

    • What are the risks and how are they mitigated?
      There are risks associated with all investments, including farmland. Please review the risks under the associated Disclosures document. The most common risks are overpaying for land and not understanding the prevailing lease rates and their drivers in the area. We mitigate these risks by being conservative in our underwriting and partnering with highly experienced farmers and farmland investment managers. One common misconception is that farmland is highly volatile, and tied to the yearly prices of crops. At FarmTogether, we often lease out the land, not operate it, so investors are insulated from risks. Given that the global supply of farmland is decreasing while food demand is growing, we see positive long-term tailwinds for land prices and lease rates.
    • How secure is FarmTogether?
      We're using SSL and HTTPS and supporting server-side and client-side encryption to make sure your personal data is safe and secure.
  • Investment Structure

    • How are FarmTogether’s deals structured?
      Investments will typically be structured as interests in a special purpose entity (each, a "Fund") that directly owns the farmland. As such, investors would be the ultimate beneficial owners of the farmland itself. A deal sponsor, as the manager, will be typically responsible for oversight, reporting, and overall management of Fund operations. Deal sponsor will be engaged as a sub-advisor and will make investment decisions, as well as providing all services related to the day-to-day management of the farmers and farmland property(s) and certain Fund operation services.
    • When and how will I receive my lease income?
      Lease payments are typically made in the first/second quarter after the lease is signed and are automatically deposited into investors’ bank accounts. The size of distributions depends on the negotiated lease payments every year. Investors are notified of upcoming lease payments and are able to track their distributions to date through our platform.
    • How is income from farmland treated?
      There is currently no tax incentives for cash rent farmland. For individual accredited investor rental income is taxed on a Schedule E, IRS Form 1040. Capital gains are taxed when farmland is sold above the purchased price. Occasionally, a property will have a pass-through of depreciation and other tax deductions, in which case that will be clearly outlined in the offering documents. This material has been prepared for informational purposes only, as FarmTogether do not provide tax, legal or accounting advice. You should consult your own advisors before engaging in any transaction.
  • Selling farmland through FarmTogether

    • How can I sell my farm on FarmTogether?
      We would love to take a look at your property and discuss it with you. If your farm fits our standards, it will be listed on FarmTogether for free. Please contact us at info@farmtogether.com.
  • Other

    • When can I expect a liquidity option?
      Every portfolio/farm has its own estimated liquidity horizon at the end of which the property will be sold on a best efforts basis using experienced advisors and brokers. We are currently planning to develop a secondary marketplace for your investments, with a launch date expected within the next two years. The marketplace will allow you to easily trade your holdings on demand. Without a secondary marketplace, liquidity will come in connection with the sale of the property.
    • Why is my investment pending?
      Your investment will be marked pending in your portfolio until FarmTogether receives and clears your funds. Your investment will become active in up to 5 business days from the date funds are debited from your account.
    • How are farmland returns generated?
      A farmland portfolio produces returns in 2 distinct ways. By purchasing and leasing the land, you can generate income from the lease payments. A second way farmland generates returns is capital gains of the land. This occurs when land values in the area you own rise or if there are capital improvements to the land you own.
    • Under what regulatory framework does FarmTogether offer these investments?
      FarmTogether is an Exempt Reporting Advisor under the SEC regulations. Our CRD # is 304511 and our SEC # is 802-117227. You can check our status here.

Submit A Question

Download

Farmland Investment
White Paper

Schedule
a call with us
Join us to become an owner of the oldest asset class in the world