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Farm

1031 Exchanges in Farmland

Our 1031 Exchange Program enables investors to either swap one investment property with farmland – a like-kind replacement property – or invest in a real property interest to enable tax savings at the time of sale.

1031 Exchange Program Overview

  • Swap one property with a "like-kind" investment or invest in a real property interest for future 1031 opportunities.

  • Potential to defer realization of capital gains, depreciation recapture, and other federal tax liabilities.

  • Access high-quality farmland sourced, vetted, and managed by FarmTogether’s team of experts.

  • Eligible through FarmTogether’s Tenancy in Common or Bespoke products.

FarmTogether 1031 Eligible Products

  • farm

    Tenancy in Common

    • Investment minimum starts at $500,000.

    • Ability to diversify across multiple TIC offerings.

    • Active deal flow with new TIC offerings available monthly.

    Schedule a Call
  • farm

    Bespoke

    • Investment minimum starts at $3,000,000.

    • Sole Ownership.

    • Customizable capital structure and risk-return profile.

    Schedule a Call

Benefits of 1031 Exchanges

An investor hypothetically purchased an investment property for $500k and is in contract to sell that property for $1mm.

  • Assuming this is a long-term capital gain, this sale would create a Federal Tax Liability of approx. $100,000.

  • By leveraging a 1031 Exchange, this investor could defer this capital gain tax by investing in a like-kind investment.

  • In addition to capital gains deferral, 1031 Exchange may also help to offset depreciation recapture.

Potential Returns of Deferred Capital Gains

*Assumes 20% long-term capital gain tax rate. Based on projected net returns of FarmTogether’s Galaxy Organic Apple Orchard. These returns are based on projections and are not guaranteed.

Program Overview

Learn more about 1031 Exchange opportunities in farmland with FarmTogether.

How It Works

  • Introductory Call

    We’ll work with you to identify your target criteria, including: desired deal size, leverage, hold period, target returns, early income, high yield, diversification, and other special preferences.

  • Preliminary Investigation

    Our Investment Team will identify and provide preliminary investment recommendations (PIRs) for Bespoke or TIC properties that may be a good fit.

  • Management & Performance

    Our team will provide the ongoing management and monitoring of the property, as well as all accounting, distributions, and the preparation and timely issuance of financials.

Past Offerings

These deals are full and not accepting new investments, but provide an example of the farms our firm has funded on our platform in the past1.

Frequently Asked Questions

Ready to Begin?

Schedule an introductory call with one of our investment professionals to begin the process of sourcing a property that meets your needs. Looking to learn more about FarmTogether first? Check out Why FarmTogether.

Why FarmTogether