If you’re interested in making money in real estate, one place to start is with farmland. Investment opportunities in this industry are very versatile. There are different options available, ranging from actually buying farmland and developing it yourself, or investing in farmland properties owned by others. You could also become a fractional owner of a successful farmland property by purchasing shares in an LLC.
Farmland currently represents nearly a $9 trillion in market globally with low volatility and high returns. An increasing population drives the demand for high-quality food. Since the supply of livable land itself is decreasing, that means that farmland will become more important than ever before. The problem with investing in it is that many farmland investors are uncertain about where to start and find the farmland market to be a bit confusing and fragmented.
But it doesn’t have to be. There are marketplaces available online that offer investors a platform where they can have access to institutional quality farmland investment opportunities – particularly in the US. Try to narrow it down to one marketplace or platform where you can browse investments and review terms and conditions securely.
It’s in your best interest to choose an organization / platform that partners with all the right people. The ideal organization will be transparent about its partners and provide information about them on their website. There should be a good mix of experienced investment managers, advisors, farmland brokers, regional experts for each farmland, and so forth.
Farmland Investment Opportunities Fit Your Portfolio
How well will farmland investment opportunities fit into your overall portfolio? It’s always considered to be a good addition to any type of investment portfolio as it is a contra-cyclical and inflation-resistant to “conventional” equity investments. Perhaps the best thing about it is that it’s a real, actual asset that will always have some sort of intrinsic worth.
Since all types of investments have inherent risks, there are some with farmland. One of the more common risks are overpaying for land without realizing and understanding the factors affecting that particular area, such as the typical lease rates and what drives them.
The actual farmers benefit from investors as well. These are hard-working people who need access to capital and land to help them sustain and even expand. They can grow better crops and keep their animals healthy and well-fed.
The best place for beginners to find farmland investment opportunities is with FarmTogether. There are new offerings for beginners and you will be able to become a fractional owner of an LLC. You’ll be able to monitor your investment by receiving regular updates, videos, photos, and details on key performance indicators.