Contributor, Benzinga
October 6, 2023
FarmTogether
Overall Rating:
securely through FarmTogether's website

FarmTogether is a crowdfunding investment platform that allows you to pool money with other investors for agricultural opportunities. FarmTogether does have strict requirements for who can and cannot invest on the platform. 

FarmTogether’s platform is new and offers limited educational offerings. It doesn’t currently offer a mobile app, and it requires higher-than-average account minimums. However, as a newer platform, FarmTogether has potential that shouldn’t be ignored,  especially if you’re a higher-value investor looking for novel ways to invest directly in farmland real estate. 

Best For
  • Investors who want to invest in farmland real estate
  • Long-term investors who don’t mind investing in illiquid assets
  • Investors with a net worth of at least $1 million
Pros
  • Can invest directly in agricultural real estate
  • Can combine your investments with other investors for larger returns
  • Offers an easy-to-use platform that’s simple enough for total beginners
Cons
  • Higher-than-average minimum investments when compared to standard brokerage platforms
  • No mobile app currently available
  • Educational offerings are limited

FarmTogether Ratings at a Glance

Fees, Commissions, Margin Rates and Account Minimums
Usability
Education
Customer Support
Offerings
Overall Rating

Why FarmTogether Over Other Platforms?

What does FarmTogether offer over other platforms? Let’s take a look at some of the biggest benefits offered by FarmTogether.

  • Direct real estate investments: When you invest in FarmTogether, you aren’t investing in FarmTogether itself — you’re investing directly in U.S. farmland.     
  • Easy onboarding: Getting started with FarmTogether is exceptionally easy. Just enter a little information about why you’re interested in opening an account and a bit of personal information and you can start browsing investments instantly.
  • An intuitive and simple platform: Comparing investment options is easy with FarmTogether and you won’t need any special investing information to get started. 

Why Farmland?

United States farmland has historically outperformed most asset classes and other forms of real estate, with annual returns of almost 12% for nearly 30 years. Farmland has also been a highly uncorrelated asset class. The S&P 500 and Farmland have had a -0.03 correlation over the past three decades, which means the performance of one has virtually no impact on the other.

With less and less land available and more mouths to feed, farmland is expected to be a strong performer for years to come.

FarmTogether Fees, Commissions, Margin Rates and Account Minimums

FarmTogether is a real estate crowdfunding platform that allows you to invest in agricultural operations across the country. You can only invest in agricultural real estate through the FarmTogether platform, with tree nuts and citrus investments currently held in U.S. row crop farmland (corn, soybeans, wheat, etc.) as well as premium organic farmland. 

Not everyone qualifies to invest with FarmTogether. You must meet at least the following minimum qualifications to open an account on the FarmTogether platform: 

  • Earn an annual income of at least $200,000 for the past 2 years ($300,000 per household).
  • Have a net worth of at least $1 million (individually or jointly).
  • Expect that your income will continue to meet the $200,000 threshold ($300,000 per household) for the foreseeable future. 

Banks, insurance companies, registered investment advisors, business investment companies, employee benefit plans, trusts or charitable organizations can also invest. Additional net worth standards (up to $5 million) apply to those not investing as an individual or household. 

Initial investment requirements and fees are typically 1% for acquisition and 1% annual management fee (but may vary for each deal). You must be ready to invest at least $10,000 to get started with FarmTogether and margin is not available. 

FarmTogether Usability

If you’re an investor with a higher net worth and you’ve ever been interested in investing your money in U.S. farmland, you’ll love FarmTogether’s innovative platform. You can quickly browse through currently available farming and agriculture investment opportunities on FarmTogether’s website. Some of the best FarmTogether features include:

  • Investment size calculator and estimates: When you explore a new investment opportunity, you’ll see an investment profile calculator that allows you to estimate your net returns based on varying investment sizes. Use the sliding calculator tool to see how many acres you’ll receive with your initial investment and view anticipated returns with a single click. 
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Use FarmTogether’s simple sliding scale tool to explore investment opportunities and anticipate your returns on each investment opportunity.
  • Simple signup process: You’ll enjoy a simple and intuitive signup process when you open an account with FarmTogether. Answer a few simple questions about why you want to invest in farmland, when you plan to invest and your personal information to open your account. Opening an account takes as little as 30 seconds, and you don’t need to link your bank information before you create your account and start browsing opportunities.
  • An easy-to-navigate platform: When you log into your FarmTogether account, you’ll be redirected to a dashboard that includes simple, intuitive information on farmland investment opportunities. Browse by crop, initial investment size and more right from your home page. 
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From almonds to mandarins, FarmTogether gives you access to a wide selection of agricultural investment options in a clear, easy-to-understand package. 

FarmTogether Education

FarmTogether now boasts a comprehensive Learning Center. It was created with the intention of helping investors better understand the landscape for what makes farmland investing a favorable and attractive long-term strategy. Some features the platform offers include:

  • Basic overviews of each investment: When you click on an investment through your FarmTogether profile, you’ll receive a simple summary of the farm’s lease structure, acreage, produce, risks and more. You can also dig into trends in agtech, sustainable and regenerative ag and more. Most investment profiles also include drone footage that shows you exactly what you’re investing in, but this may not be available for each opportunity.
  • Farmland whitepaper: Never invested in agriculture before? FarmTogether offers a free farmland investing whitepaper that details some of the benefits that come with investing in agricultural real estate. The farmland whitepaper includes a basic explanation of the different types of agricultural asset classes, some information on recent trends in farmland investing, a few of the risks associated with investing in agriculture and more. Like every other piece of information offered by FarmTogether, the whitepaper is basic enough for even totally new investors to read and understand.
  • Blog posts: FarmTogether’s blog offers articles about its leadership and how the platform vets new investment opportunities before it announces them to investors. You’ll find articles on how different agricultural products, as well as information on farmland investing strategies.
  • Webinars: Webinars are hosted for each opportunity, so you can fully understand your investment and how to manage it.
  • Podcasts: Plug into a FarmTogether podcast and let Founder and CEO Artem Milinchuk guide you through the nitty-gritty of farmland as an asset class.
  • Infographics: Check out this section for a quick, clear snapshot farmland investment topics like the future of agriculture or the core benefits of farmland investing.
  • FAQ section: Along with blog posts, FarmTogether provides an FAQ section with top questions and answers for investors. They are very transparent in their offerings and clear with the steps needed to get started.

FarmTogether Customer Support

FarmTogether currently offers 2 methods you can use to get in contact with its team:

  • Email: Contact FarmTogether by email at info@farmtogether.com.
  • Phone: Dial 904-404-5902 to get in contact with FarmTogether by phone. You’ll need to schedule a call with FarmTogether’s team before you can reach the company by phone, which you can do through your FarmTogether profile after you log in.

FarmTogether Offerings

FarmTogether currently offers investors 2 ways to access the agricultural market:

  • Crowdfunded farmland offerings: Crowdfunded farmland offerings are FarmTogether’s primary investment. When you participate in a farmland crowdfund, you pool your money together with other investors to fund an agricultural venture. In other words, you become a fractional owner of the farmland. You own a portion of the farm proportional to the amount you invest. The more you invest, the larger acreage portion you own. You then receive returns from the farmland’s appreciation at the end of the investment period, as well as annual, biannual or quarterly returns on the farm’s lease. The returns you’ll receive depend on the size of your investment and the specific lease agreement.  
  • Sole ownership bespoke offerings: If you’re ready to invest at least $500,000, a sole ownership offering might be right for you. A sole ownership bespoke offering means you are the only investor involved. This investment requires a much larger initial investment but allows you to reap higher profits and returns at the conclusion of the lease.

Investments on FarmTogether are illiquid, which means that once you’re invested, you won’t be able to get your money back until the deal is completed and capital is returned to investors. Though offerings can offer periodic cash distributions, you shouldn’t count on FarmTogether for a fast exit strategy.

This is a standard method of investing for real estate deals, but this investment style means that your money will be tied up for years. If you’re looking for an investment that offers improved liquidity or you think you might need access to your money sooner than about 5 years, FarmTogether might not be the right investing platform for you. 

FarmTogether Overall Rating

FarmTogether fills a very specific niche in the realm of investing. If you’re interested in investing in farmland and you meet the platform’s strict investor profile requirements, FarmTogether offers a unique and intuitive way to invest in agriculture. You must also meet minimum investment requirements before you can invest.

It’s important to remember that FarmTogether isn’t a real estate investment trust (REIT). Also, when you invest in FarmTogether, you aren’t investing in the platform itself — you’re investing in the specific farmland opportunity. This means that your investment is illiquid and you could lose money if the farm goes bankrupt or cannot otherwise meet its lease agreements. Pests, poor weather conditions or plain old bad luck could happen — there are plenty of reasons why your farm might not meet its financial obligations. This makes it especially important to research both the agricultural market and the crop you’re investing in before you put up money.

FarmTogether presents a unique opportunity to invest in farmland with plenty of educational tools and resources to help you make an informed decision. Do you want to get started today? Click here to learn more.

Frequently Asked Questions

Q

Is farmland a good investment?

A

Farmland can be a good investment for several reasons. It is a tangible asset that tends to hold its value over time and the demand for agricultural products continues to grow, making farmland a potentially lucrative investment. Farmland could potentially provide a steady income stream through renting or leasing the land to farmers.

Q

Is FarmTogether legit?

A

Yes, FarmTogether is a legitimate platform. It is a real estate investment platform that allows individuals to invest in farmland. They have a team of experts who carefully select and manage the farmland investments, ensuring transparency and legitimacy. Additionally, FarmTogether has received positive reviews and has been featured in reputable publications, further establishing its credibility.

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About Sarah Horvath

Sarah is an expert in the insurance, investing for retirement and cryptocurrency space.

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