What Sets Farmland Apart From Other Investment Options?

  • Resilient in Times of Turmoil
  • Long History of Stable Returns
  • High Yielding on a Risk-Return Basis
  • Trusted by Institutional Asset Owners
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Strong Performance

Farmland has demonstrated strong absolute returns over the past several decades. It averaged ~10% total annual returns (income + price appreciation) from 1992 to 2018.

Data representative through December 2018.

Sources: Farmland Values: NCREIF Farmland Index, Timberland Values: NCREIF Timberland Index, Real Estate Values: NCREIF Property Index, Stocks Values: S&P 500 Index, Bonds Values: Bloomberg Barclays US Aggregate Bond Index

Upcoming Webinar

Diversifying your Portfolio with Farmland

On-demand Webinar

In this webinar, we will discuss how American farmland, one of the most resilient asset classes over the past 40 years, performed in times of turmoil, including the Great Financial Crisis.

David Chan

Speaker

David Chan

COO, FarmTogether

Speaker
David Chan
COO, FarmTogether

Farmland is becoming an increasingly important portfolio addition for institutional investors

Now It’s Your Turn!

The increasing scarcity of farmland and its lack of correlation with other asset classes make it an exceptionally strong diversification tool for virtually any portfolio that have driven institutions to significantly increase their investments in farmland over the last 30 years.

Sources: NCREIF Farmland Index - Growth in Market Value and Property Count, 1991 - 2019

Questions?

Is farmland "Gold with a Coupon?"
We think so! Like gold, farmland is a real asset. Farmland represents an almost $10 trillion market globally while all gold ever mined is valued at roughly $7 trillion. In uncertain times, investors look for safe haven in real assets like farmland, timberland, and gold. Like a fixed financial asset, farmland also generates regular (annual or more frequent) income. In addition to the underlying value of a tangible, physical asset, farmland produces raw materials used in many essential products from food to textiles. Furthermore, American farmland is the most productive farmland in the world.
What are the ways to invest?
FarmTogether offers Crowdfunding and Bespoke farmland investment offerings for accredited investors.
Does FarmTogether function as a REIT?
FarmTogether is not a Real Estate Investment Trust (REIT). With FarmTogether, you select the farmland, its location, and the type of crops. You pick and choose. The investor has full control of where their money gets invested. You own units of an entity solely devoted to the ownership and operation of an asset. REIT shares, on the other hand, do not classify as physical ownership of a piece of real estate. You are not only at the mercy of that company management decisions, but you are also bound to their strategy, the properties they purchase, and ultimately to the stock market's constant instability.
How does farmland compare to real estate?
Farmland is similar to traditional real estate in functionality and can be a great alternative. Both are real assets that generate regular rental income. They are both hedges against inflation that provide diversification from financial assets. However, farmland tends to have lower cyclicality and volatility than commercial real estate, for example, and has been shown to provide a greater Sharpe ratio boost to most portfolios. Read about 5 ways farmland compares to traditional real estate.