March 25, 2025
FarmTogether’s Sustainable Farmland Fund Outpaces NCREIF Farmland Index in 2024
FarmTogether announces that for the second year in a row, its Sustainable Farmland Fund has outperformed the NCREIF Farmland Index (NFI)[1], demonstrating resilience despite market challenges in 2024.
The Fund posted a 2.0% Gross IRR[2] and -0.4% Net IRR[3], exceeding the benchmark by 300 and 60 basis points, respectively. This follows 2023’s strong performance, where the Fund outpaced the index by 500 bps on a gross basis. The Fund processed its annual 2024 distribution in 1Q25, in line with its 4-6% Net Cash Yield Target[4], marking a second consecutive year of meeting this income objective as well.
Since inception in early 2022, the Fund has expanded to five holdings. The latest acquisition, Pearl Vineyard, further diversifies the Fund by crop-type and geography with the addition of wine grapes in Southern Oregon. The portfolio has recorded 13.9% unrealized appreciation on a weighted-average basis, based on the latest annual appraisals through FYE 2024.
“This year’s performance underscores the strength of our investment strategy and the resilience of our farmland assets," said David Gould, CEO of FarmTogether. "Despite broader market headwinds and a challenging environment for permanent crops, our disciplined approach to asset selection and active farmland management has enabled us to outperform the benchmark for the second consecutive year. We remain committed to delivering strong, risk-adjusted returns across our entire portfolio, including both crowdfunding offerings and our diversified farmland fund.”
2024 marked the first negative year[5] for the NFI since its inception in 1990, with permanent crops—comprising over 90% of the Fund’s deployed capital—experiencing significant declines. The Fund’s relative strength highlights the quality of its assets, the resilience of selected crop varieties, and FarmTogether’s hands-on farmland management approach.
FarmTogether’s portfolio spans 52 properties[6] across eight states, representing over $209 million in assets under management[7] across 15 diverse crop types.
For more information on investing through FarmTogether, contact investments@farmtogether.com.
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About FarmTogether
FarmTogether is a farmland investment firm that provides investors with creative capital solutions in real assets. The firm’s offerings are curated by an expert team with cross-industry experience across farmland investing, asset management, and tech, demonstrated by $2.1B+ of collective capital deployed[8]. Through FarmTogether’s differentiated investment philosophy and process, robust network of industry relationships, and proprietary sourcing engine, Terra, the team can efficiently source a diverse range of high-quality farmland deals across geographies for its clients. FarmTogether specializes in high-value permanent crop acquisitions across prime growing regions of the country, a highly complex market with significant upside potential. FarmTogether currently serves accredited and institutional investors via the following investment solutions: Crowdfunded Farmland Offerings, Sole Ownership Bespoke Offerings[9], Tenancy in Common Offerings[10], Separately Managed Accounts, and the FarmTogether Sustainable Farmland Fund.
The FarmTogether Sustainable Farmland Fund
Distinct from FarmTogether’s flagship crowdfunding product, which gives investors the flexibility to choose specific management structures, geographies, and crops on a deal-by-deal basis, the FarmTogether Sustainable Farmland Fund provides a diversified investment option. Structured as an evergreen fund, it offers long-term access to a carefully curated portfolio of high-quality farmland assets in prime growing regions across the U.S. The Fund targets a net IRR of 8-10%[11] and a net annual distribution of 4-6%[12][13]. The Fund accepts new investors on a quarterly basis and offers liquidity after a two-year lockup period.
NCREIF Farmland Property Index - 4q2024. ↩︎
FarmTogether Sustainable Farmland Fund (“FSFF”) Gross IRR, Gross of all Fund fees and expenses. ↩︎
FarmTogether Sustainable Farmland Fund (“FSFF”) Net IRR, Net of all Fund fees and expenses. ↩︎
Target Net Cash Yield: Target Net Cash Yield is calculated as the average annual net payout after fees over the projected lifetime of the deal divided by the offering size. Payouts are not adjusted for a discount rate. ↩︎
NCREIF Farmland Property Index - 4q2024. ↩︎
Current Managed Deals: Current managed deals is defined as deals that have closed and are currently under the management and discretion of FarmTogether Management L.L.C. ↩︎
AUM (Assets Under Management): AUM is defined as the total project size of deals closed that are under the management of FarmTogether Management L.L.C. (including assets sub-advised by a third party), excluding dry powder not yet deployed. "Total project size" is the aggregate total secured debt and equity funded for a Project, minus upfront and one-time fees. ↩︎
Collective capital deployed includes capital invested prior to employment at FarmTogether. ↩︎
This product may be eligible for a 1031 exchange. ↩︎
This products may be eligible for a 1031 exchange ↩︎
Target Net IRR: Target Net IRR represents an annual estimated target net internal rate of return (IRR) after fees and may differ from actual returns. Target Net IRR is based on investment offering due diligence conducted by FarmTogether. ↩︎
Target Net Cash Yield: Target Net Cash Yield is calculated as the average annual net payout after fees over the projected lifetime of the deal divided by the offering size. Payouts are not adjusted for a discount rate. ↩︎
The target net returns set forth herein are based on FarmTogether's modeling at the time of acquisition of each farm and do not depict actual returns. ↩︎
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.
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