Our Investment Process & Philosophy
Data-driven, technology-enabled decision making.
With an unwavering commitment to our disciplined and conservative investment philosophy, we offer nothing but the highest quality farmland investment opportunities.
3% Of All Deals Reviewed Make It On Our Platform
Through both our proprietary sourcing technology and strategic partnerships, we review a mix of on-market and off-market opportunities across the United States. Roughly 3% of deals that enter our pipeline are eventually offered on our platform.
Our process starts with the global macro view. We take into account climate change, water availability, structural regional trends, regulatory landscapes, and long-term trends in agricultural yields.
End Market Deep Dive
Next, we dive deep into the end markets for the farm products we target. We analyze supply, demand, consumer preferences, marketing, regulations, and new product development to arrive at a long-term view on price and valuation trends for a given market.
The next stage of our process is property analysis. FarmTogether currently incorporates over 150 data sets from public, private and proprietary data sources. We then apply our proprietary technology and investment expertise to zero in on the best investment opportunities in our target geographies and crops.
For example, in California alone, we are ranking 200 water districts based on the history of allocations, weather, new riparian rights legislation (the Sustainable Groundwater Management Act “SGMA”), infrastructure and last-mile availability. We then select the districts and counties that are not only sustainable for the long-term but also provide the right risk-reward investment opportunities.
We also filter for opportunities with clear value creation drivers through improvements, such tiling, drainage, adding a secondary water source, or transitioning a property to a specialty label, such as certified organic. We are also testing and developing a comprehensive playbook of advanced agtech solutions that can further improve the performance of your farms.
Farmland Due Diligence
As we identify specific farmland opportunities, we then look at all the due diligence items relevant to the specific farm. Our 120-point checklist makes sure no stone is left unturned. This checklist includes soil, leaf, water, capital improvements, title, local legislation, depth of the supporting farming ecosystem, cost of inputs, farmworker wages, and more. We work with experienced local due diligence providers and growers to get a hyperlocal understanding of the property and the surrounding area.
Overall, our team continuously evaluates hundreds of opportunities each month, and we only select a few to recommend to our clients. We are proud of our unwavering commitment to a disciplined and conservative investment philosophy.
We believe the following factors are important in the selection of farmland:
Soil quality is a fundamental determinant of farmland productivity and therefore of its value. In considering farmland for purchase, we take soil quality into consideration to determine whether the farmland is attractively priced. In general, we focus on farmland with average or better-than-average soil.
We build our portfolio around partnerships with best-in-class operators for each of the crops we focus on. We also focus on farmland located in areas characterized by robust and experienced farm operators as potential tenants.
Due to high transportation costs, farmland’s location relative to processing and storage infrastructure (e.g., grain elevators or cold storage facilities) and points of sale and distribution (e.g. trucking warehouses, river ports or rail loading facilities) determines the premium or discount in prices farmers receive compared to the general market (also known as “basis”).
Location, therefore, can be pivotal in determining the value captured in the sale of farm produce. We look to co-locate the land we acquire with the right processing infrastructure, transportation access points, and distribution networks for each crop.
Appropriate water availability is an essential input to farming and key consideration in determining the productivity and value of farmland. We seek to acquire farmland where water availability through precipitation and irrigation meets the agronomic needs of the crops expected to be grown.
As part of our acquisition due diligence process, we evaluate properties for water availability and any associated ground or surface water rights. Where appropriate, we may also invest in irrigation infrastructure to improve the productivity of properties we own. Occasionally we may acquire farmland at prices that more than compensate us for any potential reduction in water availability, which, in the future may result in a shift to different crops or production systems.
Crops have particular climatic growing requirements. We seek to acquire properties in regions with current and future climates conducive to the expected crops. We believe that diversification within and across core farming regions and crop types provides significant annual and long-term risk mitigation for our investors.
The FarmTogether Advantage
In terms of sourcing properties with these characteristics, we use both off-market and public channels to gain access to properties. Relative to competitors, we have a number of advantages that allow us to win with these two channels, including a strong online presence, established relationships with experienced operators on the ground, and AI-driven identification.
Senior Investment Team
Director of Farmland Investing, Founding Team Member, Member of the Investment Committee
Michael David Josiah van Putten
Permanent Crop Investment Consultant
Row Crops Investment Consultant
Founder & CEO, Investment Committee Chairman
COO & Founding Team Member, Member of the Investment Committee
Our team employs a highly disciplined approach to investing. We developed our investment philosophy by investing for some of the largest and most innovative institutional funds in the world, such as Prudential and Ontario Teachers’ Pension Plan.