Buy shares of individual high-quality U.S. farms. Invest in minutes. Diversify your portfolio with an investment in a superior, long-term asset class. No experience required. Direct farmland investing. Expert vetting process.
Asset Class Return•30d
Easily invest in farmland with AcreTrader. Alongside a rapidly growing global population and demand for food, farmland offers a truly diversified investment opportunity with attractive long-term returns. They select less than 1% of the parcels they review. Each farm and its legal title are placed into a unique entity (usually an LLC). AcreTrader Management will handle all aspects of administration and property management - from insurance and accounting to working with local farmers and improving soil sustainability. You can expect an unlevered yield of 3% - 5% for lower risk properties on top of land appreciation. Although not recommended, you have the ability to exit your investment early through their marketplace.
Things to Know
You make money on
Value + Dividends
Term of investment
7% - 9%
Diversified investment opportunity with attractive long-term returns
Earn annual cash yields from renting land to farmers
We handle all the details from farm management to paperwork and payments
See inside MoneyMade’s 6-figure multi-asset portfolio
How you make money
AcreTrader is a real estate investing platform offering income-producing shares in farmland. Investors earn money two ways: annual cash rent payments from tenant farmers plus long-term appreciation of the land. Farm cash rents are typically paid once per year, as farmers usually pay rent up front.
How Acretrader makes money
AcreTrader is free to sign up. When you make an investment, there are closing fees, typically 2% of your investment amount. There is then an annual servicing fee of 0.75% of the value of the investment. AcreTrader also charges a 5% fee when the underlying property is sold, but that's paid by the selling farm owner.
Is it safe?
AcreTrader has a short track record, but they have closed almost 60 pieces of property and currently hold $100 million in assets under management. They have an A+ rating with the Better Business Bureau and completed Series A funding with $12 million in March 2021. While weather, climate, crop disease, and pests can be risk factors, their team of land and real estate experts work to limit those risks, only accepting 1% of the farms they review. Cash rents are also paid up front as opposed to at the end of the season. It will be a few more years before AcreTrader sees a farm through the entirety of its holding period.
How You’re Taxed
Profits earned from farmland are taxed like stocks. Investors are subject to short-term capital gains when selling assets owned for one year or less, which are taxed at ordinary income tax rates. Long-term capital gains are applicable when assets are owned for more than one year with tax rates ranging from 0% to 20%, depending on your total taxable income. Any rental income your farmland generates is generally taxed as ordinary income, although if you're materially involved in the farm, you may also be subject to a self-employment tax.
No comments yet
61 days ago
146 days ago