June 14, 2021
FarmTogether Surpasses $100 Million AUM As The Company Drives Scalable and Transformative Capital to Sustainable Farming
This milestone is proof of strong investor demand for stable, cash flowing, ESG-centric, and uncorrelated real assets.
FarmTogether, the technology-powered investment platform, providing accredited investors with direct access to farmland, a vital asset class, today announced that the company has surpassed $100 million in assets under management as it nears its 30th deal in just under two years.
This milestone comes on the heels of the nearly 200% growth in registrants the company witnessed in 2020 as investors continue to seek assets that are stable, uncorrelated to traditional markets, and historically high-yielding (returns to U.S. farmland have averaged 10.85% since 1992). With U.S. inflation the highest it has been in 13 years, reaching $100M AUM represents the strong demand for inflation-protected asset classes.
“From a global capital markets perspective, this milestone is strong validation for a growing asset class for all investors,” said Richie Prager, Former Global Head of Trading and Liquidity Strategies at BlackRock and current FarmTogether Board Observer. “I have no doubt that institutional capital will accelerate into this space.”
The announcement also comes at a pivotal time for sustainable investments. This month, the United Nations announced that a total investment of $8.1 trillion is required between now and 2050 in order to successfully tackle the inter-linked climate, biodiversity, and land degradation challenges. By directly investing in farmland through FarmTogether, investors have the opportunity to invest in our food ecosystem and help drive agriculture toward sustainability on a massive scale, in turn, reinforcing the land’s value over time.
“Farmland provides investors with cash income, capital appreciation, and a balanced portfolio. Sustainable farmland takes this one step further,” says David Chan, COO of FarmTogether. “Farms with healthy soils, ample water, and efficient infrastructure are worth more, and this will become more true in a future where high-quality farmland is increasingly scarce.”
Over the last year, the company has taken strides to advance its unwavering commitment to sustainable agriculture, including democratizing access for more investors. In January 2021, FarmTogether announced its partnership with Leading Harvest, the first scalable, industry-wide standard paving the way for universal sustainable farmland management. In March, the company partnered with Backstage Capital in a push to make investing in farmland more accessible.
“We are only at the very beginning of opening up the $10 trillion farmland market and addressing the $4 trillion funding gap required to hit the UN’s Sustainable Development Goals by 2050,” said Artem Milinchuk, CEO of FarmTogether. “At FarmTogether, we’re committed to providing the key financial building blocks for a sustainable future.”
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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.
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