FarmTogether's investment committee, comprised of our executive team, selects the top properties from hundreds of investment opportunities.
Our team conducts comprehensive due diligence internally plus hires dedicated external teams. Diligence includes industry analysis, soil, tissue, water rights, on-farm equipment and farm's potential for capital improvements.
Only once we feel confident in all aspects of the opportunity does it appear on our platform.
Investment offerings are legal entities, most often LLCs, that own the titles to your investment property. When you invest on FarmTogether, you're purchasing shares in an LLC. You become a fractional owner of the farmland and are entitled to returns from its operation.
Cash payouts from operating income are proportional to your ownership in the LLC, so a $50,000 investment in a $5M offering would entitle you to 1% of the returns.
We'd love to hear from you. If you have any questions or feedback, schedule a call with one of our experts.
Receive regular updates on your farmland investments, including refreshed key performance indicators on productivity, photos and videos. FarmTogether administers and manages all properties and we source and partner with the industry's best operators to maximize the productivity of your farm.
Сash Rent, Input Costs, and Taxes
Under cash rent leases, farmers pay all the input costs (seeds, fertilizer, etc.). From the lease payments, we'll take care of property taxes, insurance, and other landowner expenses. Investors receive cash distributions from net profits after all fees generated by the farm.
Land Value Appreciation
We track land valuation closely. We will utilize local appraisers to assess the property's value on an annual basis.
Cash Yield is calculated as annual gross cash rent paid out divided by the initial purchase price. The example below uses Volk Farm, an actual farm owned and operated by our partner.
Cash distributions will be made on a quarterly or annual basis, depending on the harvest sales schedule or lease agreement for the given year.
We provide all required tax documents in the first quarter of the following year. Because the LLC is a pass-through entity, we will not deduct federal income taxes from your earnings before distribution. In fact, in some cases, you may even realize tax benefits via pass-through depreciation.
At the end of a property's target hold period, investors receive their share of capital gains from the sale of their farm.
The projected land appreciation is expected to come from our strategy on purchasing deep value, off-market opportunities, making improvements, inflation, long-term trends of growing food demand, and decreasing farmland supply.
Land Value Appreciation
Land Value Appreciation is based on annual farmland assessments. The example below uses Volk Farm, an actual farm owned and operated by our partner.
FarmTogether creates farmland investment opportunities for investors across the globe to expand and diversify their investment portfolios.
Farmland is an excellent addition to any investment portfolio. It is inflation - resistant and contra-cyclical to many conventional equity investments.