Acretrader

Acretrader

Acretrader

Acretrader

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.

Highlights

+2.89%

Asset Class Return30d

#4 Rank

In Farmland30d

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Invest from

$10K

Overview

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

  • Fees

    0.75%

  • Min Investment

    $10,000

  • Payout frequency

    Annual

  • Term of investment

    36+ months

  • Target Return

    7% - 12%

  • Liquidity

    Moderate

  • Open to

    Accredited Only

  • Mobile Application

    No

Top Perks

  • 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

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.

  • Established

    2018

  • Country Available

    US Only

  • Assets Managed

    n/a

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