Everybody is trying to diversify their portfolios these days, and if there is one type of investment that a lot of people seem to be overlooking it is farmland. Historically, farmland investment companies have provided a lot of benefits, and have outperformed stocks and bonds consistently. Expected growth, combined with long-term demand and supply, are indicators that there will be ongoing value appreciation.
You don’t even have to actually buy the land yourself, hire some farmers, purchase equipment and supplies, build infrastructure, buy and care for animals, etc. in order to be a farmland investor. There are already farmers who are working with investment companies, who sell shares to investors.
It’s a good idea to start investing as soon as possible, since the world’s population is expected to grow exceptionally over the next decade. There will be a couple billion more mouths to feed, which means farming will be more important than ever before. To keep up with the growing demand, farmers will have to rely on investors.
Due to extreme changes in the climate, it may be more difficult to obtain farmable land in the upcoming decades, which means current farmland must be preserved and expanded as best s possible in order to ensure that the supply meets the demand.
Farmland Investment Companies With Good Assets
Your best bet, as mentioned above, is to join a farmland investment platform that provides investors like you with direct access to new or growing farmland as an asset class. Ideally, choose a company that carefully chooses properties that they themselves would invest in. Carefully curated farms are discovered with the use of decades’ worth of research, knowledge, and experience.
If you’re not careful, you could wind up investing in the wrong property. In some geographical areas, the soil quality is deteriorating, and will continue to do so over time. If you’re not an expert in soil and topography, you’ll need to work with farmland investment companies that have experts who are able to determine which farm properties make good long-term investments.
Unless you are a multi-millionaire, you probably won’t be able to invest in a private equity farmland fund, as they often require a lot of money to open an account – in some cases, as much as $100,000,000.
A more affordable option is to go with a “crowdfunding” solution that includes simple low fees. You likely won’t have to pay more than $10,000 to get started. Another option is “sole proprietorship bespoke” offerings, which can cost around $750,000.
Of the farmland investment companies that offer such platforms, FarmTogether is one you’ll really want to look into. It offers the best quality of farmlands and versatile investment options to help you with your portfolio. You’ll be able to monitor your account and the property you invest in online.