Farmtogether.com Reviews

Based on checking the website, FarmTogether.com appears to be a legitimate platform designed to facilitate investments in U.S.

Farmland, offering various structures for accredited investors to gain exposure to this asset class.

It positions itself as a robust option for diversifying portfolios, citing historical performance and inflation-hedging qualities.

If you’re an accredited investor looking to explore alternative assets beyond traditional stocks and bonds, and the idea of investing in agricultural land resonates with your long-term financial goals, FarmTogether presents a seemingly well-structured entry point.

The platform emphasizes its rigorous due diligence process, with a claimed 105-point checklist, and highlights that less than 1% of deals entering their pipeline are ultimately offered to investors.

This suggests a highly selective approach, which can be a reassuring factor for those wary of less scrutinized opportunities.

With over $209 million in assets under management and more than 152 deals funded across 27,100+ acres in eight states, FarmTogether aims to provide transparency and access to an asset class traditionally difficult for individual investors to enter directly.

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IMPORTANT: We have not personally tested this company’s services. This review is based solely on information provided by the company on their website. For independent, verified user experiences, please refer to trusted sources such as Trustpilot, Reddit, and BBB.org.

Understanding the Farmland Investment Landscape

Farmland has long been considered a stable, tangible asset, distinct from the volatility often seen in public markets. Its appeal lies in its dual return potential: income generation through crop sales or lease payments, and capital appreciation as land values increase over time. Based on the website, FarmTogether leverages these characteristics, pitching farmland as an attractive long-term investment.

Historical Performance and Inflation Hedging

FarmTogether’s website prominently features data showcasing farmland’s historical performance. According to their presented data 1992-2024, privately held U.S. farmland had an average annual return of 10.15%, with a volatility of 6.82% and a Sharpe Ratio of 1.09. This is compared to US Stocks S&P 500 at 10.49% average annual return and 17.59% volatility, and US Bonds Bloomberg Barclays U.S. Aggregate Index at 4.55% return and 5.46% volatility.

• Inflation Hedge: The website asserts that farmland is a “superior inflation hedge.” This is a key selling point, as food prices often rise with inflation, and land values can appreciate accordingly. Their data indicates a correlation to CPI Consumer Price Index of 0.11 for farmland, suggesting a positive, albeit mild, relationship with inflation.
• Low Volatility: Compared to US Stocks 17.59% and US REITs 18.77%, farmland’s reported volatility of 6.82% makes it seem like a significantly less turbulent investment. This might appeal to investors seeking stability in their portfolio.
• Uncorrelated Returns: Farmland is presented as an asset with returns uncorrelated to traditional stocks and bonds. This can be crucial for portfolio diversification, as it means farmland may perform differently during economic shifts, potentially dampening overall portfolio risk.

Diversification Beyond Traditional Assets

The platform strongly advocates for diversifying beyond just stocks and bonds. It presents a compelling case that farmland has outperformed most major assets for over 30 years.

• Asset Class Comparison: Their “Asset Class Performance 1992-2024” chart directly compares farmland to US Stocks, US Bonds, Real Estate, US REITs, Timberland, and Gold. This visual comparison reinforces the idea that farmland holds its own, if not outperforms, in terms of risk-adjusted returns.
• Real Estate vs. Farmland: While both are tangible assets, farmland often has a more direct tie to essential consumption food production and is less susceptible to commercial real estate cycles, though it still has its own unique market dynamics tied to agricultural economics, weather, and commodity prices.

FarmTogether’s Investment Offerings and Structure

FarmTogether provides a range of investment products catering to different investor capacities and preferences, from fractional ownership to bespoke deals.

Each offering is tailored, indicating flexibility in their approach to farmland investment.

Crowdfunding Offerings

This is the most accessible entry point for accredited investors on the platform.

• Fractional Farmland Ownership: This model allows multiple investors to collectively own a piece of a larger farm. It democratizes access to an asset class typically reserved for large institutions or ultra-high-net-worth individuals.
• Minimum Investment: Starting at $15,000, this option makes farmland investment more attainable for a broader segment of accredited investors.
• Digital Platform: The entire process is managed through FarmTogether’s digital platform, which streamlines investment, reporting, and communication. This can be a significant advantage for modern investors accustomed to online management of their portfolios.

Sustainable Farmland Fund

For investors looking for a more diversified and managed approach, the Sustainable Farmland Fund is an alternative.

• Diversified Portfolio: This fund invests in a portfolio of high-quality sustainable farmland properties. Diversification across multiple properties, crops, and regions can help mitigate risks associated with individual farm performance or regional challenges.
• Open-Ended Fund Structure: An open-ended fund allows for continuous investment and redemption, offering greater liquidity compared to direct, illiquid property ownership, though specific redemption policies would need to be thoroughly reviewed.
• Minimum Investment: The entry point for this fund is significantly higher at $100,000, suggesting it’s aimed at investors with larger capital allocations.

Bespoke Offerings

This option caters to highly capitalized investors seeking custom-tailored investment solutions.

• Custom Property Sourcing: FarmTogether’s investment team works directly with the investor to source a property that meets their specific criteria, whether it’s related to location, crop type, or return objectives.
• Minimum Investment: With a starting point of $3,000,000, this is clearly for institutional or ultra-high-net-worth investors who want direct, customized control over their farmland assets.
• Direct Engagement: This involves a much more hands-on approach with FarmTogether’s expert team, providing a high degree of personalization.

Separately Managed Accounts SMAs

SMAs offer the ultimate in customization and flexibility for substantial investors.

• Multi-Asset SMAs: These accounts allow for flexible and customizable investment mandates, potentially incorporating various types of farmland or even other real assets as per the investor’s strategy.
• Flexible and Customizable: Investors have significant input on how their capital is deployed and managed, often aligning with specific ESG Environmental, Social, Governance criteria or geographic preferences.
• Minimum Investment: At a staggering $20,000,000, this is exclusively for institutional investors, family offices, or very large private wealth.

FarmTogether’s Due Diligence and Expertise

One of the critical differentiators highlighted on the FarmTogether website is their rigorous due diligence process and the expertise of their team. Kanbantab.com Reviews

This emphasis on selectivity and professional oversight is crucial for building investor confidence in an asset class that requires specialized knowledge.

Unparalleled Access and Vetting

The platform claims to offer “unparalleled access to farmland investments vetted by rigorous due-diligence.” This suggests they have proprietary sourcing channels and a robust system for evaluating potential deals.

• 105-Point Due Diligence Checklist: This specific detail provides a tangible measure of their commitment to thoroughness. Such a comprehensive checklist would likely cover aspects like soil quality, water rights, historical yields, environmental assessments, legal standing, access to infrastructure, and local market dynamics.
• Highly Selective Process: The statistic that “less than 1% of deals that enter our pipeline are eventually offered on our platform” is a powerful statement. It implies an extremely high bar for what makes it onto their platform, theoretically filtering out weaker or riskier opportunities before they reach investors. This kind of selectivity is vital in real asset investments where due diligence is paramount.

Expert Investment Team

The website boasts an “Expert investment team with $2.1B of collective capital deployed.” This metric speaks to the team’s experience and track record in managing significant capital in real asset investments.

• Disciplined and Conservative Philosophy: A “disciplined and conservative investment philosophy” is generally favorable for long-term real asset investments like farmland, where capital preservation and steady income are often prioritized over speculative gains. This approach aligns with the asset’s inherent stability.
• Proprietary Sourcing Technology and Partnerships: Leveraging technology for sourcing can provide an edge in identifying attractive properties efficiently. Strategic partnerships, whether with local farm operators, real estate agents, or agricultural experts, can enhance deal flow and local market intelligence.

Farmland in an Economic Context

FarmTogether’s resources section directly addresses macro-economic factors, positioning farmland as a resilient investment in various economic climates.

This demonstrates an understanding of investor concerns regarding market volatility and inflation.

Farmland and Rising Land Values

The website touches upon the increasing value of agricultural land.

• Drivers of Growth: Factors contributing to rising land values typically include increasing global food demand, limited supply of arable land, inflation, and increased institutional interest in real assets. FarmTogether’s content suggests they see these trends continuing.
• Scarcity and Demand: As global population grows and prime agricultural land remains finite, the intrinsic value of farmland is generally expected to appreciate, barring significant agricultural disruptions or policy changes.

The Case for Farmland in an Inflationary Economy

This is a recurring theme on the FarmTogether website, highlighting farmland’s role as a hedge against rising prices.

• Commodity Price Impact: When inflation drives up the cost of consumer goods, including food, the underlying value of the assets producing those goods farmland can also increase. This creates a natural hedge.
• Historical Precedent: The website likely draws on historical data to support its claim that farmland has historically protected investors against inflation. This involves analyzing how farmland returns have performed during periods of high inflation.

Tax Advantages: 1031 Exchanges

FarmTogether also highlights its capability to facilitate 1031 Exchanges, a significant tax advantage for real estate investors.

Understanding 1031 Exchanges

• Like-Kind Property: A 1031 Exchange named after Section 1031 of the IRS tax code allows investors to defer capital gains taxes when they sell an investment property and reinvest the proceeds into a “like-kind” property. Farmland qualifies as a like-kind replacement property for other real estate investments.
• Tax Savings: This program can be highly beneficial for investors looking to reinvest their capital without incurring immediate tax liabilities, effectively allowing their investment to grow tax-deferred.
• FarmTogether’s Role: FarmTogether’s 1031 Exchange Program enables investors to either swap one investment property with farmland or invest in a real property interest through their platform to enable these tax savings. This adds another layer of financial sophistication to their offerings.

Investor Experience and Resources

The overall impression from the website is that FarmTogether aims to provide a comprehensive and user-friendly experience for accredited investors.

Learning Center and FAQs

• Educational Resources: The “Learning Center” offers articles on topics like “California Farmland: The Largest Food Producer In The US” and “Land Values Are Rising – What’s Driving This Growth?”. These resources help educate potential investors about the nuances of farmland investment and broader agricultural market trends.
• Transparency: By providing educational content and a dedicated FAQ section, FarmTogether attempts to address common investor questions and concerns proactively, fostering transparency.

Past Offerings

• Examples of Funded Farms: The “Past Offerings” section, while not accepting new investments, serves as a portfolio of the types of farms and deals FarmTogether has successfully funded in the past. This provides concrete examples of their track record and the quality of properties they list. It can help potential investors visualize the kinds of assets they would be investing in.

Considerations for Potential Investors

While FarmTogether presents a compelling case for farmland investment, it’s crucial for potential investors to consider several factors, typical of any alternative investment platform. Distributed.com Reviews

Accreditation Requirement

All investment offerings on FarmTogether are only available to accredited investors. This is a significant limitation, as most retail investors will not qualify.

• Accredited Investor Definition: Generally, an accredited investor is an individual with a net worth over $1 million excluding primary residence or an income exceeding $200,000 individually or $300,000 with a spouse in the two preceding years, with a reasonable expectation of the same in the current year. This requirement is in place due to the less regulated nature of private offerings compared to public securities.

Liquidity

Farmland, by nature, is an illiquid asset.

While crowdfunding and fund structures may offer some pathways to liquidity, direct land ownership is not easily convertible to cash.

• Long-Term Horizon: Investors should be prepared for a long-term investment horizon, typically 5-10 years or more, to realize the full potential of farmland investments. The website itself refers to it as a “compelling long-term investment.”
• Fund Structures: Even with funds, redemption options and timing can be subject to specific fund rules, which should be thoroughly reviewed.

Risks Associated with Farmland

Like any investment, farmland carries risks.

• Climate and Weather: Agricultural productivity is highly dependent on weather patterns. Droughts, floods, or extreme temperatures can significantly impact yields and, consequently, returns.
• Commodity Price Volatility: The prices of agricultural commodities can fluctuate due to supply-demand dynamics, global markets, and geopolitical events, affecting farm profitability.
• Operational Risks: Issues like pest infestations, crop diseases, or poor farm management can also impact returns. FarmTogether’s due diligence aims to mitigate these, but they are inherent to agricultural operations.
• Regulatory and Environmental Changes: Changes in environmental regulations, water rights, or agricultural policies could affect farmland values and operational costs.

Fees and Expenses

While not explicitly detailed on the homepage, investment platforms typically charge various fees, including:

• Management Fees: For ongoing management of the farmland or fund.
• Acquisition Fees: Charged at the time of property purchase.
• Performance Fees: A percentage of profits generated above a certain threshold.
• Due Diligence Fees: To cover the cost of vetting properties.

Prospective investors should carefully review the offering documents for each specific investment to understand all associated fees and how they might impact net returns.

Conclusion on FarmTogether.com

FarmTogether.com positions itself as a professional and specialized platform for accredited investors to access the U.S. farmland market.

The website emphasizes its deep industry expertise, rigorous due diligence processes, and a diversified array of investment products, from fractional ownership to highly customized large-scale acquisitions.

The data presented suggests farmland’s historical stability and inflation-hedging capabilities, making it an attractive option for portfolio diversification.

For those who meet the accreditation criteria and are seeking to allocate capital into a tangible, long-term asset with a track record of consistent performance, FarmTogether offers a structured and seemingly secure pathway. Redmine-evolution.com Reviews

However, as with any alternative investment, thorough personal due diligence, understanding the specific risks, and being prepared for illiquidity are paramount before committing capital.

Frequently Asked Questions

What is FarmTogether.com?

Based on looking at the website, FarmTogether.com is an online platform that allows accredited investors to invest in U.S. farmland.

It offers various investment structures, including fractional ownership, diversified funds, and bespoke deals, aiming to provide access to this historically stable asset class.

Is FarmTogether legitimate?

Based on checking the website, FarmTogether.com appears to be a legitimate platform for farmland investments.

It highlights over $209 million in assets under management, 152 funded deals, and a rigorous 105-point due diligence process, suggesting a professional and established operation.

Who can invest on FarmTogether.com?

Based on the website, only accredited investors can invest on FarmTogether.com. This typically means individuals with a net worth over $1 million excluding primary residence or an annual income exceeding $200,000 or $300,000 with a spouse for the past two years.

What is the minimum investment for FarmTogether?

The minimum investment on FarmTogether.com varies by offering. For “Crowdfunding Offerings,” it starts at $15,000. For the “Sustainable Farmland Fund,” it’s $100,000. “Bespoke Offerings” start at $3,000,000, and “Separately Managed Accounts” begin at $20,000,000.

What types of farmland investments does FarmTogether offer?

FarmTogether offers several types of farmland investments: Crowdfunding Offerings fractional ownership, Sustainable Farmland Fund diversified portfolio, Bespoke Offerings custom-sourced properties, and Separately Managed Accounts highly customizable.

How does FarmTogether select its farmland deals?

FarmTogether states it has a rigorous 105-point due diligence checklist.

The website highlights that less than 1% of deals entering their pipeline are ultimately offered on their platform, indicating a highly selective process for vetting properties. Vinyls.com Reviews

What are the historical returns of farmland investments through FarmTogether?

The website presents data from 1992-2024 showing that privately held U.S. farmland, as measured by the NCREIF Farmland Index, had an average annual return of 10.15%. This is a general asset class performance and not specific to FarmTogether’s past investor returns.

Is farmland a good investment for inflation hedging?

Based on the website’s claims, yes, farmland is presented as a “superior inflation hedge.” The platform argues that as inflation rises, the value of agricultural products and the underlying land tends to increase, protecting investor capital.

How liquid are investments on FarmTogether?

Farmland is generally an illiquid asset.

While FarmTogether’s crowdfunding and fund structures may offer some degree of managed liquidity, direct farmland investments are typically long-term and not easily converted to cash quickly. Investors should expect a long-term hold period.

What are the risks of investing in farmland through FarmTogether?

As with any investment, risks include: dependence on weather and climate, volatility in commodity prices, operational risks e.g., pests, diseases, and potential changes in agricultural regulations or environmental policies.

Does FarmTogether manage the farms after investment?

Based on the offerings, FarmTogether’s role extends beyond just sourcing.

For their managed offerings funds, SMAs, potentially crowdfunding, they handle the ongoing management, including working with local operators to ensure productivity.

What crops does FarmTogether typically invest in?

While the website doesn’t list specific target crops for all offerings, it mentions “15 Crops” and features articles about “California Farmland,” implying a diversification across various agricultural products commonly grown in the U.S.

Can I use a 1031 Exchange with FarmTogether?

Yes, FarmTogether offers a 1031 Exchange Program.

This allows investors to defer capital gains taxes by swapping one investment property for a “like-kind” farmland investment or by investing in a real property interest through their platform. Gigadrive.com Reviews

How does FarmTogether make money?

While not explicitly detailed on the homepage, platforms like FarmTogether typically generate revenue through a combination of acquisition fees, annual management fees, and potentially a share of profits performance fees from the investments they facilitate.

How does FarmTogether’s performance compare to stocks and bonds?

The website presents data from 1992-2024, showing farmland 10.15% avg.

Annual return, 6.82% volatility with a comparable return to US Stocks 10.49% return, 17.59% volatility but significantly lower volatility.

It also shows superior returns and lower volatility compared to US Bonds 4.55% return, 5.46% volatility over the same period.

What states does FarmTogether operate in?

The website states that FarmTogether manages over 27,100 acres across 8 states in the U.S. Specific state details would likely be found in individual offering documents.

What is the collective capital deployed by FarmTogether’s investment team?

FarmTogether’s website states that their expert investment team has $2.1 billion of collective capital deployed, indicating significant experience in real asset investments.

Does FarmTogether offer any educational resources?

Yes, FarmTogether has a “Learning Center” with articles and resources on farmland investing, market trends, and economic factors relevant to agriculture, such as “The Case for Farmland in an Inflationary Economy.”

How do I get started with FarmTogether?

Based on the website, you can click the “Get Started” button or browse “Live Offerings” to begin the process.

You would typically need to register an account and verify your accredited investor status.

Can non-accredited investors invest in FarmTogether?

No, based on the information provided on the website, FarmTogether’s investment opportunities are exclusively for accredited investors. Finary.com Reviews

There are no offerings currently mentioned for non-accredited investors.