FarmTogether

FarmTogether

4.7

(3 Reviews)

Farmland

FarmTogether

FarmTogether

4.7

Farmland

FarmTogether is an investment manager that gives accredited investors access to vetted U.S. farmland. Whether you want to diversify your assets, hedge against inflation, or generate income, farmland can serve various investment goals. 6-13% Target Net Returns. 2-9% Target Net Cash Yield.

Highlights

+3.65%

Asset Class Return30d

#4 Rank

In Farmland30d

avatars

Invest from

$15K

logo

FarmTogether Review

autor

Megan DeMatteo324 days ago

There’s approximately 911 million acres of U.S. farmland—here’s how to own a slice of the pie.

Overview

FarmTogether is an online farmland investment platform headquartered in San Francisco and founded by Artem Milinchuk. It enables accredited investors to invest in US institutional quality farmland. Investors can select from different properties, locations, and crop types curated by FarmTogether. Unlike a fund, the investor has full control of what they invest their money into.

Investors can also invest through their Bespoke channel, which enables individual investors to own the entire farm outright; this opportunity is sourced for investors who seek sole ownership and are willing to invest a capital of $1,000,000+ in equity per farm.

Things to Know

  • You make money on

    Value + Dividends

  • Fees

    1.5%

  • Min Investment

    $15,000

  • Payout frequency

    Quarterly

  • Term of investment

    60+ months

  • Target Return

    6% - 15%

  • Liquidity

    Hard

  • Open to

    Accredited Only

  • Mobile Application

    No

Top Perks

  • Generate income from both crops and land value appreciation

  • Recession-resistent investing

  • Earn passive income

How you make money

Investors make money in two ways. 

  • Land income: Land generates income, typically either from rent or from profit off crops. In all cases, experienced farmers and farming companies pay rent or contract to work the land. The owners (FarmTogether on behalf of investors) take care of property taxes, expenses, etc. Investors receive cash flow from distributions of net profits after expenses and taxes.
  • Land price appreciation: The team uses land assessment and market measures to value the property annually. Upon the property's sale, investors receive their proportional share of the profits.

How FarmTogether makes money

FarmTogether's permanent crop offerings have the following fee structure: 2% one-time admin fee, 1-2% annual management fee, 5% net operating income fee. Their row crop offerings have the following fee structure: 1% one-time admin fee, 20% of the gross rent (typically 0.75%-1.0% annual management fee). Please refer to their Private Placement Memorandum for each deal for more information.

Is it safe?

The most common risks are overpaying for land and not understanding the prevailing lease rates and their drivers in the area. FarmTogether mitigates these risks by being conservative in their underwriting and partnering with highly experienced farmers and farmland investment managers. At the same time, the allocation of substantial amounts of capital for investment in farmland and farming-related properties and significant competition for income-producing real estate may inflate the purchase prices for such assets. If they acquire properties in such an inflated environment, it is possible that the value of the properties may not appreciate and may, instead, decrease in value, perhaps significantly, below the amount they paid for such assets. In addition to macroeconomic and local economic factors, technical factors, such as a decrease in the amount of capital allocated to the purchase of farmland and farming related properties and the number of investors participating in the sector, could cause the value of our assets to decline. FarmTogether is an Exempt Reporting Advisor under the SEC regulations.

  • Established

    2017

  • Country Available

    Worldwide

  • Assets Managed

    $200M

How You’re Taxed

Capital Gains

Capital Gains

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.

Reviews

4.7
  • 5

    2

  • 4

    1

  • 3

    0

  • 2

    0

  • 1

    0

Reviews (3)
A

Aaron s

Great

Excellent platform!

dope

Related Reads

post-img
moneyMade

mone...

29 days ago

Invest like Bill Gates with the Best North Dakota Farmland
post-img
moneyMade

mone...

56 days ago

4 Best Assets to Hold in a Bear Market

Similar Platforms

Explore Assets

Dogecoin
Music Royalties
Tether
Farmland
Wine
Art
Real Estate
Robo Advisor
Gold
Bitcoin
Stocks
Lending
Startups
Ethereum
DeFi
Solana
Oil & Commodities
Polkadot
Metaverse
NFTs
Whiskey
Bonds
Platinum
Sports Cards
Cardano
Ripple
Silver
Watches