Investing in agricultural land, whether it’s in the form of buying stocks or outright buying a farm, can be a fantastic, long-term investment with the potential for huge returns. However, many people have no idea where to start, and you have to be careful with how you choose to go about it. There are online farmland investing platforms you might want to look into to make the process simpler.
It is fair to characterize farmland as “a type of real estate,” as with real estate investments, the farmland management can be as passive or as active as you need it to be. If you own much property, you could use that land to start your farm and grow your crops. Lease it out to experienced farmers. You could also just become a partial owner of farmland via a ‘crowdfunding” type of platform.
Regardless of how you go about it, the underlying value of well-tended farmland can increase over time. As mentioned above, this is a long-term investment, meaning you will not get rich overnight through farmland investing platforms.
How do agricultural investments affect your portfolio? It can be a good diversifier. Unless you are an absolute expert in the industry and consider yourself to be a “farming insider,” you do not want all of your net worth tied up into farmland. You can use it as an asset class that helps reduce the volatility in performance.
Farmland Investing Platforms Can Also Be ETFs
Publically traded farmland/agricultural-related ETFs are worth looking into if you want a simple way to buy and sell via online brokers. Agriculture stocks and ETFs can focus on crop production and distribution or industries that offer support, such as firms that specialize in producing and selling seeds and fertilizers.
Crops will always be a commodity all around the world as the population continues to grow. However, stocks and ETFs are not for everyone. If you have enough money to do so, you could look into farmland investing platforms that offer crowdfunded farmland solutions. Before you do so, find out what the requirements are for being an accredited investor so that you’ll be allowed to participate.
“Sole Ownership Bespoke Offerings” tend to be for high-end investors who have much money to put into equity.
Learn more about what it takes to get involved in farmland investing platforms and what the options are at FarmTogether. It is a technology-enabled platform that provides qualified investors with excellent opportunities and access to farmland as part of an asset class.