FarmTogether is taking the investment world by storm, providing an innovative solution for those looking to invest in farmland. But is it right for you? Dive into this FarmTogether review to find out!
What Is FarmTogether?
Artem Milinchuk, with over 10 years of finance experience in food, agriculture, and farmland founded FarmTogether in 2017. Traditional barriers associated with farmland investing include locating suitable farmlands, verifying the titles, putting in huge investment, and finding buyers when required. FT’s online platform aims to break these barriers by offering a more approachable and feasible way for accredited investors to step into the world of agriculture.
FT’s distinctiveness is underscored by its innovative crowdfunding approach. Crowdfunding allows multiple investors, regardless of their individual financial capabilities, to contribute collectively and access opportunities that might be financially challenging to venture into solo.
Farmland investments offer more than just planting seeds and waiting for them to grow. FT provides an array of investment options spanning across the United States. The beauty of this is that investors can diversify their portfolios by selecting from different types of farmlands and geographical areas. This geographical distribution can potentially shield investors from localized risks.
Moreover, the allure of farmland investing lies not just in its appreciation potential but also in the steady income generated from lease payments and harvest yields. Additionally, with the increasing global demand for food, driven by rising incomes and changing dietary preferences, the agricultural sector promises potential growth.
How Does FarmTogether Work?
FT’s approach begins by understanding the investor. By starting with a quick survey on their platform, they collect vital details about an individual’s investment aspirations and preferences. This initial step ensures that the investment journey is tailored to the individual, optimizing the experience right from the onset.
FT doesn’t leave investors in the dark. Based on the information you provide, they curate a list of potential investment opportunities that are in line with your specific goals. This targeted approach increases the chances of an investor’s satisfaction with the options presented. Once comfortable, the next step involves creating an account, marking the beginning of your farmland investment journey.
Pros vs. Cons of FarmTogether
- Diverse Opportunities: Many FarmTogether reviews consider it as a unique real estate crowdfunding platform. While most platforms focus on residential or commercial properties, FarmTogether takes a different approach. They enable you to invest directly into farming operations. This fresh angle in real estate crowdfunding makes it unique, especially for those looking to diversify their portfolios. FT provides a diverse range of offerings, ensuring there’s a perfect match for every accredited investor’s interest and financial capacity.
- High Returns:The world of farmland investing offers considerable potential for profits. For the period 1992-2022, Farmland has demonstrated strong absolute returns. It averaged 11% total annual returns (income + price appreciation).
- Passive Income: The farming operations you invest in generate regular returns, providing investors with a genuine passive income source.
- Skilled Management: Your hard-earned money deserves the best hands to manage and multiply it. FT boasts a team of competent professionals dedicated to ensuring that every investment opportunity presented is of the highest quality. With a solid management team, you can have peace of mind knowing that your investments are well-taken care of and positioned for growth.
- Time: When investors opt for farmland investments through FT, they’re essentially choosing an asset class that inherently demands patience. Farmland, as an investment, doesn’t offer the same liquidity as stocks or bonds. Unlike day trading or options trading, for example, the nature of real estate, especially farmland, makes it a more illiquid investment (if you want to make money consistently, that is). Therefore, potential investors should be cognizant of this aspect and be prepared to have their capital committed for a longer period. This long-term perspective is essential since farmland appreciation and returns are typically realized over extended periods, reaping benefits from factors such as land value appreciation, crop yields, and sustainable farming practices.
While FarmTogether offers many advantages, potential investors should be aware of a minimum investment of $15,000 for Crowdfunded farmland offerings. Other products like Sustainable Farmland Fund, Sole Ownership Bespoke Program, 1031 Exchange program have even higher limits. The platform also charges an initial investment fee of about 2% and an annual maintenance fee ranging between 1% to 2%.
The fees are generally in line with alternate investment assets and are not high if you consider the potential for huge returns.
FarmTogether Review: Final Thoughts
Wrapping up our FarmTogether 2023 review, we can say that for those looking to diversify their investment portfolios or seeking new avenues, FarmTogether presents an innovative solution. However, like any industry, it does face competition from other best alternative investment platforms like Yieldstreet and Masterworks. Potential investors should thoroughly evaluate each platform to determine which aligns best with their financial goals and risk appetite.
If you’re keen to learn more about what FarmTogether has to offer, click here to embark on your investment journey.