March 23, 2022
FarmTogether Expands Access to Safe-Haven Asset with Launch of Sustainable Farmland Fund
FarmTogether, a farmland investment manager powered by cutting-edge tech, today announced the launch of its Sustainable Farmland Fund, furthering its mission to open a vital asset class for all investors as demand for sustainable and safe-haven assets reaches new levels.
Farmland has historically generated both attractive absolute and risk-adjusted returns while providing investors protection against inflation and economic downturns; historical data shows that farmland returns have outperformed the CPI by 7.74%, on average, in the past five decades. FarmTogether is tapping into the $2.7 trillion U.S. farmland market to bring unparalleled access to institutional-quality farmland through a variety of products, including crowdfunded farmland offerings, 1031 exchange, sole ownership bespoke offerings, and now, the Sustainable Farmland Fund.
“We are pleased to offer investors access to a diversified fund of sustainable farmland investment properties through the FarmTogether Sustainable Farmland Fund,” said David Chan, FarmTogether COO, and founding team member. “Through this product, we hope to increase ease and accessibility for investors who prefer a hands-off diversified approach to real asset strategies and impact investments, such as sustainable farmland.”
Separate from FarmTogether’s crowdfunding product, which offers investors flexibility within the management structure, geographies, or crops they choose, the Fund will provide a pool of diversified, pre-selected farmland properties.
FarmTogether’s Fund will invest in a range of farmland opportunities across both permanent and row crops in prime growing regions of the U.S., including tree nuts, citrus, and apples, in which FarmTogether has deep expertise. Investments in the FarmTogether Sustainable Fund will target the following allocation:
- 50% tree nuts, 25% tree fruit, 15% citrus, 10% row crops
- 40% CA, 30% WA & Upper Midwest, 20% OR, 10% AZ & OK
As part of FarmTogether’s commitment to the Leading Harvest Certification, each property’s operations will be verified sustainable through outcomes-based evidence and third-party audits. 100% of FarmTogether’s acres under management are currently Leading Harvest Certified.
The Fund has a target net IRR of 8-10% and a net annual target distribution of 4-6%. The minimum investment is $100,000, and the minimum hold period is two years.
Click here to see farmland's historical performance, visit our FAQ to learn more about investing with FarmTogether, or get started today by visiting ways to invest.
Disclaimer: FarmTogether is not a registered broker-dealer, investment advisor 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.
Was this article helpful?