There are many lucrative reasons to invest in farmland and the agriculture industry in general. Historically, farmland has not correlated with other, more conventional asset classes. A farm investment is also inflation resistant as it provides long-term tailwinds. Finally, it is an industry that is integral for survival. As the population grows, the demand for agricultural-related commodities will increase. Still, the supply will require investors to meet the growing needs.
The good news is that investors don’t have to buy their farm directly, as other avenues are available. The bad news is that some of these opportunities are only available for accredited investors. If you don’t qualify as an accredited investor, your options will be limited.
Nevertheless, farmland and agriculture cover such a large variety of investment types, much in part due to the advancements in technology. For example, you can put a share of money into a farm or agricultural property via a crowdfunding platform, buy and sell stocks associated with farms, invest in equipment used in farmland, etc.
Scarcity is another reason a farm investment can be an excellent idea. Factors such as climate change and population growth affect the amount of good soil and cause issues for farmers and livestock. The sooner you can own a bit of that land – even if you cannot physically visit it, the better. Farm properties and stocks are excellent additions to investment portfolios.
Farm Investment in Different Countries
Don’t just limit your farm investment research to US farms, either. Around the globe, there is quality land used for crops, livestock-raising, orchards, vineyards, and even mineral production. Any of these may be covered in an ETF, ETN, or REIT focusing on agriculture.
There are sole ownership “bespoke” types of offers. For this, you would need a significant amount of money you would be willing to invest in equity for each farm. Depending on the platform, the minimum amount could be as high as $1,000,000. Again, the fees would be custom and aligned with the deal structure.
Suppose you can’t afford to be a sole owner but are still considered an accredited investor. In that case, the crowdfunded farmland investment option is something you might want to look into. Depending on the organization you go through, the starting amount could be as low as $15,000. In addition, you could get the benefit of having diverse assets curated to fit your diversified portfolio needs.
For a good starting point, take a look at the farm investment opportunities offered by FarmTogether. The online investment process is seamless, and the fees are low and easy to understand. In addition, they have a qualified team of 40+ remote experts in 7 different countries to help bring potential profits to investors.