Farmland Investment

Best Way to Invest in Farmland Strategies: REITs? Crowdfunding? What is Right for You?

There are hundreds of millions of acres of farmland across the US. Estimates show that ranchers and farmers own approximately 60% of the used land. Partnerships or non-operating individuals own about 21% of farmland. Trusts, corporations, etc. own about 10%. In short, the average investor does not have to buy an actual farm. There are many options available to you. What is the best way to invest in farmland?

First, you need to understand the benefits of agricultural investments. The most obvious reason is that it is an investment opportunity that has proven to produce stable returns. Such returns include crop yields, rental payments, and increased farmland values. Plus, food is an essential commodity, along with water.

Unless you’re wealthy, then direct land ownership isn’t going to the best way to invest in farmland for you. Buying land has a sizable upfront cost. It allows you to rent out the land and receive returns. This path has risks of putting that much money upfront towards an investment. A lousy investment could lead to consequences and loss on an astronomical level.

REITs with a focus on farmland offer a more viable option for many investors. An investor will need a brokerage account and enough money to buy at least one share to take advantage of such an opportunity. REITs are the best way to invest in farmland for those whose primary concern is affordability. Since farmland REITs trade on the stock exchange, there is going to be some risk.

A third option is to invest via a crowdfunding platform for farming and agriculture. Crowdfunding has been growing in popularity in recent years. More and more businesses, entrepreneurs, and investors see the benefits. Businesses are always looking for more funding, while investors are looking for opportunities. Crowdfunding brings them together.

As far as crowdfunding goes, farmland isn’t as easy or viable as an option to investors as many other investments. There are some requirements involved. Often, the crowdfunding platforms only allow accredited investors to take part. To qualify, you’ll need a minimum amount of money. Unlike direct land ownership, you will not need as much.

Crowdfunding may very well be the best way to invest in farmland. You can find a platform that doesn’t require too much money and is careful at land choice. Its team of dedicated researchers should use proprietary technology to look for opportunities. This way, they find the most promising ones to increase the chances of long-term profitability.

Now that you have a few options in mind look into a company such as FarmTogether. It meets all the criteria for being the best way to invest in farmland. Also, they present only the most potentially profitable properties.

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