FarmTogether Closes The Largest Single-Asset Crowdfunded Farmland Investment Coming Off A Remarkable Year of Growth
The unparalleled deal size directly reflects the growing demand for farmland investments, as investors seek alternative assets and ESG opportunities amid heightened market volatility, fears of inflation, an emphasis on sustainability, and more.
FarmTogether, the technology-powered, online marketplace providing accredited investors with direct access to institutional-grade farmland, today announced the closure of the largest single-asset crowdfunded farmland investment to date: a 201-acre organic redevelopment property located in Franklin County, Washington - a $22M deal.
Galaxy Organic Apple Orchard’s unparalleled deal size directly reflects the increasing demand for farmland investments among retail investors. FarmTogether saw 178% growth of users on their platform in 2020, as investors sought alternative assets and ESG options amid heightened market volatility, the muted performance of bonds, fears over inflation, and an emphasis on sustainability. The company also recognized over 3,000% growth in investments, with multi-million dollar deals closing in under an hour.
“The continued growth we’ve witnessed validates our mission to provide investors with greater access to farmland investment opportunities while simultaneously channeling funding for the transitions necessary to support sustainable and profitable farming. Through our offerings, we’re able to leave a lasting and positive impact in more ways than one,” said Artem Milinchuk, CEO of FarmTogether.
With a target net IRR of 15.0% and a target net average cash yield of 19.6%, Galaxy Organic Apple Orchard is expected to be a high-quality prime orchard that will be of interest to institutional investors and large growers at exit. The property will be replanted with two premium organic varietals, Cosmic Crisp® and SweeTango®, and will be operated by Stemilt Growers, a leading tree fruit growing, packing, and shipping company based in Washington.
In January, FarmTogether announced their partnership with Leading Harvest, the first scalable, industry-wide standard paving the way for universal sustainable farmland management. Galaxy’s deal size includes ~$14.1M in development costs to bring the property to maturity and transition it to a sustainable operation, advancing FarmTogether’s firm commitment to sustainability and regenerative agriculture.
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Disclaimer: FarmTogether is not a registered broker-dealer, investment adviser or investment manager. FarmTogether does not provide tax, legal or investment advice. This material has been prepared for informational and educational purposes only. You should consult your own tax, legal and investment advisors before engaging in any transaction.