• Types of Investments: 4/5
  • Crowdfunded Farmland Offerings: 4/5
  • Sole Ownership Bespoke Offerings: 4/5
  • Acquisition Process: 4/5
  • Secondary Market: 3/5
  • Payment Method: 5/5
  • Ease of Use: 5/5
  • Customer Support: 4/5

2022's FarmTogether Review

Fact-checked
  • Types of Investments: 4/5
  • Crowdfunded Farmland Offerings: 4/5
  • Sole Ownership Bespoke Offerings: 4/5
  • Acquisition Process: 4/5
  • Secondary Market: 3/5
  • Payment Method: 5/5
  • Ease of Use: 5/5
  • Customer Support: 4/5

Best For

Investors looking to invest in agricultural real estate

STRENGTHS

  • High-quality investment
  • Investors have the freedom to choose their investment
  • Low fees

WEAKNESSES

  • Only accredited investors are allowed to invest
  • Limited liquidity

FarmTogether is an online investment platform that offers crowdfunded farmland offerings. Farmland can be a great investment, and FarmTogether makes it easy to invest in this type of property. In this FarmTogether review, we’ll take a look at the different types of investments available through this platform, as well as the acquisition process and the secondary market.

What Is FarmTogether and How Does It Work?

FarmTogether is an online investment platform that enables accredited investors to invest in farmland. Farmland is a unique asset class with many benefits, including the potential for high returns, inflation protection, and diversification. FarmTogether makes it easy for accredited investors to get exposure to this asset class through crowdfunded farmland offerings.

Accredited investors can buy partial or full ownership of an agricultural property through FarmTogether’s platform.

In this FarmTogether review for 2022, we must point out FarmTogether is now out of reach for middle-class investors because of the accreditation requirement, but with investment minimums as low as $15,000 per placement, FarmTogether is much more than just an ultra-wealthy portfolio diversification strategy.

Thus, if you’re still wondering whether investing is a good choice for you or how you can invest in farmland, FarmTogether may be just the thing for you!

Main Features

In this part of our FarmTogether investment review, we’ll take a closer look at the main features of FarmTogether:

Types of Investments

There are two types of FarmTogether investment options:

1. Fractional Ownership

Several FarmTogether investors contribute to crowdfunded farm purchases funded by one or more FarmTogether investors.

The average FarmTogether investor has significantly greater access to crowdfunded farmland offerings. However, they’re out of the reach to investors with modest assets because they’re only qualified for tax-saving 1031 exchanges, when investors spend at least $500,000 on a single offering.

Reviews of FarmTogether show it thoroughly investigates every possibility before choosing only those that pass the strict standards and in which it’s willing to put its own money.

Each investor buys shares in a special purpose entity, an LLC, that directly owns the underlying farmland, as opposed to holding title to the farmland itself as one of dozens or hundreds of tenants-in-common.

In West Coast subregions with strong water availability, high-quality soils, and close proximity to FarmTogether’s preferred farm operator networks, the company targets permanent crops like tree nuts and citrus.

2. Sole Ownership Bespoke Offerings

Assets wholly owned by households, single individuals, or entities.

The investor has complete control over the hold times, yields, and risk-return profiles of bespoke offers. They often qualify for 1031 exchanges, and have a $1 million minimum investment requirement.

Individuals and Organizations That Can Participate in FarmTogether Offering Investments

In this FarmTogether review for 2022, we need to point out FarmTogether welcomes investments from people and businesses that fall under the category of accredited investors as defined by the U.S. Securities and Exchange Commission (SEC):

  • Minimum income in the last two years of $200,000 for individuals and $300,000 for couples, with expectations for future income to be at least as high;
  • Minimum assets (net worth) in the last two years of $1 million either for individuals or couples;
  • Minimum assets in the last two years of $1 million for eligible business entities.

Individual entities, pension funds, IRAs, solo 401(k) plans, and other qualifying vehicles are all acceptable means for investors to fund and hold their assets.

Acquisition Process

FarmTogether reviews claim its data-science-driven sourcing platform assists in finding desirable off-market assets.

For assistance in locating both on- and off-market purchase prospects, FarmTogether also makes use of a large network of agriculture industry experts and digital sourcing partners.

Although FarmTogether investors aren’t actively participating in the acquisition process, it’s still important to grasp what the basic process looks like.

According to FarmTogether, the procedure goes like this:

  • Lead Located: A farm is found that falls within FarmTogether’s desired crop and geographic “purchase box” areas.
  • First Call: FarmTogether gets in touch with the landowner to discuss the property.
  • Property Evaluation: FarmTogether reviews show the investment team analyzes the farm’s fundamentals, such as water availability, yield potential, and appreciation prospects, using its industry knowledge and Terra, FarmTogether’s AI-powered farmland underwriting engine. The team schedules a site visit if the farm appears to be a good match for FarmTogether and its investors.
  • Offer and Agreement: FarmTogether creates a sales proposal that satisfies the demands of the landowners. A sales contract is signed once the parties agree on the parameters of the transaction.
  • Due Diligence: FarmTogether carries out full due diligence, including doing a title check, verifying water rights, making sure the land complies with all applicable local, state, and federal environmental laws, doing market research, testing the quality of the soil and water, and more. Reviews of FarmTogether claim the investing team at FarmTogether is quick and uses technology to avoid the bureaucracy that’s usually associated with big institutional land investors.
  • Escrow and Closing: If no issues are discovered during due diligence, the sale closes. As FarmTogether gets ready to make the farm available to its investors, the previous owners receive the sale money.

Secondary Market

Although recent developments like REITs have increased market liquidity and made low-cost fractional ownership of real estate assets possible, it’s still better to approach this class with the long-term horizon in mind. That also applies to FarmTogether, as its holding periods last for a minimum of several years, and the platform warns investors they might not be able to exit early should the need arise. Nevertheless, FarmTogether promises to use “best efforts” to find secondary buyers.

But according to many FarmTogether investment reviews, this restriction might be changing. FarmTogether has stated it would launch a secondary market in 2021, intended to make it simpler for FarmTogether investors to buy and sell agricultural assets after the first offering period has ended.
Nowadays, a secondary liquidity market pilot is available on FarmTogether, and the company has tested three products with secondary market liquidity periods. It intends to provide liquidity choices for all transactions.

Feature Rating
Types of Investments 4/5
Individuals and Organizations That Can Participate in FarmTogether Offering Investments 4/5
Acquisition Process 4/5
Secondary Market 3/5

Ease of Use

According to many FarmTogether investment reviews, starting with FarmTogether is quite simple. Just go to the FarmTogether website and click on Join Today.

FarmTogether Homepage

 

You can browse investments right away after providing a few details about why you’re interested in starting an account and providing your personal details to open an account.

FarmTogether Create an account
According to the reviews from FarmTogether investors, the platform is intuitive and easy to use. With FarmTogether, comparing investment possibilities is simple, and you don’t need any specialized knowledge to get started.

Payment Method

FarmTogether offers a quick and secure site where users can quickly set up an account, upload documents, and make payments. Investors can monitor the performance of their portfolios on the same site once it’s set up.

Every investment opportunity has a distinct goal, and the expected profits vary depending on the property. Most investments anticipate returns of between 7% and 13% after deducting management costs. Investors typically receive cash dividends ranging from 3 to 9%, with the remainder coming through agricultural appreciation.

FarmTogether Investors’ Income

Depending on the offering type and specific contracts linked to each property, investors are compensated in a variety of ways through:

  • Payment of farmland rent under lease agreements.
  • Direct management agreements for farms with a permanent crop.
  • A portion of the money made from farming operations is also distributed to investors.
  • When/if the property is sold, capital appreciation (the difference between the purchase and sales prices) is realized. These advantages result from increased property values and long-term trends that have driven up land prices.

Many investors are wondering—is FarmTogether legit? Yes, it is, and the income payments you receive as an investor are based on your percentage ownership. Typically, earnings are placed into investors’ bank accounts automatically on a quarterly, semi-annual, or annual basis. Investors will get returns from the price appreciation of farmland at the conclusion of the hold period for the particular opportunity.

Fees and Limits

The platform’s fees and investment caps differ by specific opportunity. For each farming opportunity, certain objectives of interest to investors are specified, including IRR, hold term, net cash yield, and net equity multiple. These goals are clear, and the platform has documentation to support them.

In this FarmTogether investment review, we should point out there’s normally a one-time setup charge (often between 1 and 1.5 percent) and an ongoing annual management cost when investing (1– 2%). Minimum investments range between $15,000 – $50,000, and holding periods range between five and twelve years.

Customer Support

Currently, FarmTogether provides 2 ways for users to get in touch with its staff—you can reach support via email at info@farmtogether.com or by phone at +1 415 876 5587.
Prior to calling FarmTogether, you must first schedule a call with the staff, which you can do by logging in to your FarmTogether profile.

Alternatives

Next, we’ll compare FarmFundr, Fundrise, and Acretrader vs FarmTogether to see how the platform stacks up against its alternatives:

FarmTogether AcreTrader Fundrise FarmFundr
Win Allows investors to combine investments with each other for larger returns Allows investors to choose which properties they want to invest in Provides more liquidity than having your own real estate property Investors receive personalized service and easy access to places
Lose No mobile app available Low liquidity During market downturns, the platform may restrict withdrawals High investment minimums
Best For Investors looking to invest in agricultural real estate More stable investment outside of bonds and stocks Investors looking for a long-term investment California residents

Unlike its competitors, FarmTogether allows almost any knowledgeable, well-capitalized investor to benefit from its platform.

That position could be lucrative due to cash yields much greater than even the finest high-yield savings accounts and the promise of long-term capital gains that outperform the stock market. FarmTogether offers diversification, which may be even more crucial for investors with extended time horizons than the potential for above-average yields and returns.

FarmTogether Review: Conclusion

FarmTogether is one of the greatest ways to invest in farmland if you decide to do so. They can make purchasing farms as simple as using money to buy equities through a broker. Additionally, the investment is anticipated to provide annual income from net rents as well as capital growth when the property is sold.

You won’t need to be involved in the agricultural process or require any specialized skills in the interim. Despite having the advantages of a farmland investment, you’ll be acting more like a landlord than a farmer.

If you aren’t sure about this option, you can always consider some other investment tools.

FAQ

Is FarmTogether a REIT?

FarmTogether isn’t a REIT—a REIT is more like a mutual fund in that investors hold a small portion of each property included in the REIT, which has a diverse portfolio of assets. Contrarily, with FarmTogether, the individual properties are actually owned by FarmTogether investors.

How does FarmTogether make money?

FarmTogether operates in a similar manner to crowdfunding websites for real estate. It has a lengthy hold period and is illiquid, just like real estate (i.e., years). Both cash payments and land appreciation generate profits for investors.

Is FarmTogether a good investment?

As you can tell from our FarmTogether review above, it’s a good investment. Farmland is used by some of the richest people in the world to diversify their holdings, and for good reason—for the past 20 years, it’s been one of the asset classes with the strongest returns. Nevertheless, finding a good price and doing your homework are the keys to investing in agriculture.

ABOUT AUTHOR

As challenging as she looks, Kristina loves to question things. Her analytical skills give us a fresh look at markets, products and services and her experience as a real estate agent keeps our related topics up to par.