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- July 8, 2022
In 2019, I made my first farmland investment via AcreTrader, an agricultural investing platform, and I’ve now had several years of experience with the company to aid in writing this AcreTrader review.
I grew up in a small farming community in southern Minnesota, and several of my friends lived on farms. I got to enjoy the freshest sweet corn every summer, hayrides and big bonfires in the fall, and those farm kids contributed to one great wrestling team in high school.
I was never cut out to be a farmer, though. I wasn’t much of a wrestler, either.
I do, however, know the benefits that we all reap every day from the hard work that farmers do and the fertile soils that they tend to.
I’ve known that agriculture can be a profitable and reliable business, but until recently, I didn’t know of a good way to participate as an investor in the field (pun intended). AcreTrader has changed that, making it simple for accredited investors to own a piece of a crop-producing, cash-flowing farm without getting their hands dirty.
An AcreTrader Review
The Jumpstart Our Business Startups (JOBS) Act of 2012 gave millions of Americans access to investments previously available only to institutional investors.
Title III of the JOBS Act, known as the CROWDFUND Act, went into effect in 2016, allowing for the creation of crowdfunded real estate investing platforms like AcreTrader.
The company was founded in 2018 by CEO Carter Malloy, but the seeds go much further back. Carter, whom I had the pleasure of meeting at a conference in 2019, grew up in a farming family in Arkansas, but he took a different path, earning a degree in physics and eventually joining a large private investment bank as an equity research analyst.
With AcreTrader, he is returning to his roots while using his experience in the world of finance to invest only in top-performing farms and farmland. His company does due diligence to separate the wheat from the chaff on every potential investment, rejecting > 99% of them, with only the cream of the crop offered up to potential investors.
AcreTrader’s COO, Garrott McClintock, has a similar background. He grew up as part of the 5th generation on the family farm in the Mississippi delta. After graduating from college, he worked with a value-oriented investment firm before joining Oxbow Agriculture, where he co-managed farmland with $40 Million in annual revenue.
AcreTrader’s mission is to identify farmland that can be obtained at an excellent value, rent the land to local farmers, and work with them to improve soil sustainability and output. Allowing investors to participate in the funding of these acquisitions allows AcreTrader to grow their collection of farms more rapidly, avoid taking on any debt for the transactions in most cases, and it gives investors an opportunity to benefit from both the rents collected and the likely appreciation of the value of the land itself.
Most farms will be held by AcreTrader anywhere from 3 to 10 years (a range will be given for each investment) while implementing or continuing modern, sustainable farming practices. The land will then presumably (but not guaranteed) be sold at a profit.
Why Invest in Farmland?
People gotta eat!
If it weren’t for farmers and farmland, I wouldn’t be able throw down on some Triscuits and cheese, Cobb salad, or a sirloin steak. I could probably cobble some sort of salad together with a garden and a green thumb, and I’ve managed to grow some hops at home, but modern agriculture makes it infinitely easier to enjoy an incredible variety of foods ’til the cows come home.
Besides the obvious fact that farms produce food and you eat food, there is some historical data that farmland has been a strong investment with relatively low volatility and strong returns.
Since 1990, farmland has produced, on average, a total return of 11.5%, and has done so with lower volatility than other asset classes offering double digit returns.
AcreTrader would rather underpromise and overdeliver, and most investments offered suggest a total average annual return in the 7% to 10% range.
While you’re not likely to see the 20% and higher IRR that some crowdfunded real estate investment opportunities have returned, I personally see a lower risk with farmland.
In most deals, no leverage is used in the purchases of the farms on the AcreTrader platform. The investor’s gains come from rent paid and price appreciation of the property. This model is very similar to that used by Republic Real Estate (formerly Compound) when they invest in condominium properties.
Compare this model to a typical real estate investment that uses leverage (i.e. debt) to purchase a property. If an equity investment uses 60% to 70% leverage (which is typical) and the value of the property drops 30% to 40% (atypical but possible — see 2008), a $10,000 investment in that property would now be worth $0.
An unlevered property that is purchased with 100% cash, on the other hand, would not be a complete loss for the investor after a 30% to 40% drop in value. I’ll also point out that such a decline would seem much less likely with farmland that has passed strict due diligence as opposed to residential or commercial real estate, but even so, a $10,000 investment in this scenario would be worth $6,000 to $7,000 after a 30% to 40% drop in value.
Adding farmland as part of your real estate investing or alternative asset class is another way to further diversify your investment portfolio. As compared with investments in the stock market or “recession-proof” investments like gold, farmland has held its value quite well over time.
As Mark Twain purportedly said, “Buy land. They’re not making it anymore.” Farmland is, indeed, in short supply worldwide.
AcreTrader Performance
Only a few farms have gone full circle on the relatively young platform as of late summer 2022, and all three significantly outperformed projected returns.
On average, projected returns were 9.1% and investors’ actual average return on these three farms were 23% with a range from 15.4% to 30.3%.
See this article on AcreTrader for further details on Acretrader’s results.
How AcreTrader Makes Money
While the founders are dedicated to efficient modern farming and allowing others to profit from their efforts, they also expect to profit themselves. They gotta eat, too!
AcreTrader acts as the real estate brokerage when they buy and sell farmland, profiting from the 5% or so in transaction fees. Again, this is consistent with the Republic Real Estate model.
The individual investor pays a 0.75% to 1% annual management fee, and closing costs of up to 2% when a property is purchased. These are higher than the fees of owning index funds, but now we’re comparing apples to almonds. I consider these fees to be very reasonable and not unlike other crowdfunded investment fees.
What you get in return is due diligence by a team of professionals, active management of the farmland, tenants to rent the land, regular reports from the farm (more on that below), accounting services, tax documents, and more.
Selecting Farms
How does AcreTrader perform due diligence on the many possible farm acquisitions they explore?
When you review current offerings, you’ll see grades assigned to each investment that can vary from a high score of A down to a low score of D. I wouldn’t expect to see a farm with an exceptionally low score offered — those would hit the cutting room floor, but those with a sub-A grade would represent a farm with more risk and potentially more reward.
The following are among the negative criteria used when evaluating a parcel of farmland:
- Flooding in the last 10 years from an unresolved drainage problem
- Water access problems
- No current tenant
- Lack of access to a maintained roadway
- Crop delivery point more than 50 miles away
- Presence of non-farming leases (i.e. hunting, energy)
- Low-Activity market (fewer than 10 land sales of $100,000 or more in a 100-mile radius
Among the current and recent offerings on AcreTrader, most were A-grade, but if you scroll through the closed and fully funded listings, you will see a grade B almond farm.
My Experience with AcreTrader
Currently, AcreTrader offerings are available only to accredited investors. To qualify as such, you must have an income of $200,000 (as an individual) or $300,000 (as a couple) for the last two years or have a net worth (excluding primary home) of $1 Million or more.
In the summer of 2019, I invested in a corn and soybean farm in Des Arc, Arkansas. AcreTrader was novel, but I liked the premise, and I made my commitment to buy 20 shares, the equivalent of two acres to add to my growing collection of real estate investments.
Note that when you invest in one acre or several acres, you are actually purchasing shares in an LLC that is set up for each farm acquired by AcreTrader. Your money first goes to escrow with North Capital Private Securities Corporation, a registered broker-dealer and a member of FINRA andSIPC.
When I invested, new offerings on the platform took weeks to become 100% funded, so my investment was in cash for the time that the investment filled and the property was closed upon. As the deal flow increases (new farmland offerings are now fully subscribed in hours or a few days), the amount of time before the capital is invested is decreasing.
The land I’m invested in was acquired in November, and I received my first cash dividend in December of 2019 and additional payments in 2020, 2021 and 2022. The distributions were in line with the 3% to 5% annualized payment — the remainder of my return is expected to come from the land appreciating in value and/or having been bought at a discount. In 2022, U.S. farmland appreciated 20%.
Farmland has done exceptionally well over the years, and it’s no surprise that an intelligent man like Bill Gates is the nation’s largest private farmland owner.
I have received my K-1 tax reporting documents timely in February each year. In this particular investment, nearly 70% of the distribution I was paid was offset by “net rental real estate income (loss)”. I paid ordinary income tax on approximately 30% of the cash distribution.
Investing with AcreTrader
Prior to making my first investment with AcreTrader, I was able to view quite a bit of information about the property as an investment. Details included the location, pictures of the land, the acquisition price and other fees, anticipated rent, and gross and net yields.
I’ve received a couple of updates on the farm’s progress, including a mid-season update and a year-end summary.
Crop yields can be unpredictable from year to year, but your investment income is tied more closely to the rent paid, making the proceeds less subject to volatility. That structure offers some downside protection, while some of the investments do offer a share in the upside if crop production exceeds certain parameters.
Many of the investments I’ve seen on the platform are in typical row crops like wheat, corn, sorghum, and soybeans. However, I’ve also seen opportunities to invest in farms producing apples, melons, cherries, cotton, rice, almonds, and peanuts.
Since the holding period of any individual plot of farmland can be up to a decade, it’s too soon to say whether or not the investment will be successful for me. I will say that communication has been great, the technology makes signup and accredited investor status verification easy, and I’ve run into no issues or problems.
To see current listings and be notified in advance of future offerings, you can create an account with AcreTrader here. Note that this is a referral link, as are a number of other links in this review. This site may be compensated when you register for an account, enhancing our charitable mission.
AcreTrader is registered with the Better Business Bureau and has an A rating.
Caveats
It’s not all chlorophyll-producing sunshine and rainbows. Before considering an investment via AcreTrader, know that there are some risks.
It is a relatively new company. The concept is not new, but AcreTrader as a platform has only existed as a company since 2018, and no deals have gone full-circle.
Fortunately, AcreTrader does not own your farmland investment; the LLC formed for the purchase does. If the platform itself were to “buy the farm” or “be put out to pasture, “so to speak, the underlying entity that owns the property would remain solvent.
Right now, the shares in the various farms (or underlying LLC) are rather illiquid — that is, not easy to sell. AcreTrader plans to offer a secondary marketplace in the future, subject to regulatory approval.
Also, as mentioned previously, investments on the AcreTrader platform are currently available only to those with a high income or high net worth as private placement Regulation D investments. In the future, they may offer Regulation A+ investments that all investors can participate in. I have seen investments on the platform with a minimum investment under $10,000, but most have in the $15,000 to $20,000 range. Expect those minimums to drop dramatically when non-accredited investors are allowed to participate.
Any investment that requires one to be an accredited investor should be considered high-risk. That being said, the lack of any debt used, the rejection of 99% of farms evaluated, and the fact that people love and need food are all factors that help me sleep at night.
Finally, while rent is collected monthly, investors are paid yearly. If you are in need of frequent distributions to make ends meet, look elsewhere. As an accredited investor, this should be a non-issue. If you are living paycheck-to-paycheck, an illiquid asset like this is not a suitable investment for you.
Is AcreTrader the only company offering crowdfunded farmland? No, actually. There are others, including FarmTogether, FarmFundr, and HarvestReturns. After reviewing the offerings of each, I felt most comfortable with AcreTrader, but you should know that other options exist to participate in crowdfunded farmland investing.
There are additional ways to invest in agriculture without investing in individual properties. There are REITS like LAND and FPI, and you could also invest in agricultural-based companies like John Deere & Co (DE) or Del Monte (FDP).
Learn More About AcreTrader
If you’re intrigued by the possibility of owning a small part of a working farm and benefitting from the crops it produces, I would encourage you to further explore the possibility by visiting their comprehensive learning center. The FAQ is quite thorough and will likely answer any questions you may have, as FAQs are apt to do.
- Frequently Asked Questions
- White Paper
Learn More About AcreTrader
If you’d like to explore another crowdfunded agriculture investment platform, you’ll enjoy this review of FarmTogether from my friend Kevin at Just Start Investing. Learn more about FarmTogether here.
As an investor growing the alternative portion of my investment portfolio (to 20% of the total), I’ve been happy to add farmland as an asset class via AcreTrader.
Learn More at AcreTrader
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Have you invested directly or indirectly in farmland and agriculture? Please tell us about your experience below.
This is a sponsored promotion for the AcreTrader platform. Physician on FIRE may have investments in companies represented on the AcreTrader platform. This informational
is by no means a promotion, solicitation, or recommendation of any specific investment.
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64 thoughts on “AcreTrader Review: My Investment in Cash-Flowing Farmland”
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Very interesting concept, thanks for sharing. I love acreage, own 16 acres myself, but I’d be a little concerned with a 3rd party having any interest in it. I wish you well with it, thats for sure, Arkansas is a great place to own a farm by the way!
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Hi,
I started reading your blog and is very much interested in FIRE movement.My questions are about not only AcreTrader, but also about other real estate investment options (syndications) which are open for accredited investors only.
1) Given less regulatory scrutiny on those investments vs. publicly traded companies, would you think there’s much more business risk, less liquidity and more chance of fraud? If so, why do you put your hard earned money into higher risk investments, rather than investing in individual stocks, which are also very risky, but have more transparent financials and greater liquidity?
2) What percent of your total investable assets are in such investments that require one to be an accredited investor?
3) Why do you think that selecting projects via AcreTrader or various real estate syndications will have a better success rate than selecting publicly traded stocks? How is this different?
Thank you,
SteveReply
Hi Steve,
You’ve asked some great questions, and ultimately, it’s up to you to decide where to invest your hard-earned dollars. My answers:
1) These companies and the investments they offer are regulated by the SEC. This isn’t crypto we’re talking about here. Crowdfunded investments have been available for the better part of a decade, and many investments have gone full circle. The results speak for themselves. There tends to be an illiquidity premium. Why not invest in individual stocks? I have, but the point of investments like these is to diversify away from the stock market and into alternatives.
2) Either 10% to 15% if you go with the amount invested, or > 50% if you’re willing to count chickens that haven’t yet hatched (startups with increased valuations).
3) I’ve not made any such claim, but it should be clear from the article above how this is different, and farmland / agriculture does have a solid risk-adjusted return history as shown above.
My job isn’t to convince you to that this is the best thing since sliced bread. It’s to present an option for diversifying your investments. Given that there’s rarely leverage used, it’s relatively low risk compared to most real estate investments. But remember, there are no called strikes in this business. Do as you wish.
Best,
-PoFReply
Thank you! This was in no way a criticism, just trying to understand the risks and the rationale. I am an index funds investor (VTSAX, etc.) and my brief foray into individual stock picks (LCID and RIVN) resulted in large unrealized losses so far. Hence, my cautious stance.
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One risk that is not mentioned is climate change. I have been watching Acre Trader’s offerings for some time now. Some of them will loose money in the short term as the water crisis in the West worsens. Water resources are literally drying up across the west now, today. Other areas are also being impacted. Some farms seem like they will fair well, but on many of these the risks are essentially “undefined” as we enter a new era of climate risks.
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Water rights are something they look very closely at, but you’re right, if they can’t get water, they can’t grow almonds or whatever it is.
I played it safer with my investment by sticking to the heartland where rainfall is generally adequate and we’re not draining rivers and reservoirs.
Best,
-PoFReply
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I’ve only ever invested in index funds in various Fidelity and Vanguard accounts (403b, Roth IRA, HSA, taxable investment account), but I would like better diversification so investing in something like AcreTrader and/or real estate crowdfunding platforms and syndications is my next big step. I’m a little apprehensive because these types of investments feel dramatically different from index funds, so it feels like a big leap, and I probably need to shore up my financial literacy before I jump. Anyway, here come my complete newbie questions. Are the earnings you receive from these platforms just directly deposited into your checking account? Can your gains be held in an account with these platforms and automatically re-invested with them so you don’t have to pay taxes on the gains until you sell? Is the money you earn from these platforms taxed like any other income? Appreciate any insight (as well as recommended readings to improve my financial literacy!)
Reply
I encourage you to browse their FAQ or reach out to them directly if you don’t get all of the answers you’re looking for. They’ve got people who will be happy to answer your questions in more detail than I can.
Briefly, yes to the direct deposit. No to the deferral of capital gains — with any investment, you’re generally taxed on the dividends, whether they’re reinvested or not. If they’re labeled as “return of capital,” taxes can be deferred. You’ll receive a K-1 for the investment each spring before the Tax Day deadline. Mine shows real estate income in Box 2 and Distributions in Box 19.
Best,
-PoFReply
AcreTrader, the technology company that dynamically connects investors, land, and farmers, today announced it has raised $40 million in Series B funding to further empower its customers to buy and sell land smarter. Anthemis Group, a global platform, led the round, joined by all existing institutional investors in the business. The round brings AcreTrader’s total funding to $58 million since inception.
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Thanks for your review of AcreTrader. I found your article on AcreTrader by pure chance, while reading another of your articles on taxes and high incomes. I had found out about AcreTrader by accident about 4 weeks ago while looking to privately purchase a small organic farm (24 ac) in Utah. I never trust anything I find on the Internet without extensive research and review and it was hard to find independent reviews of AcreTrader. Therefore, it was helpful to read about someone who has been invested with them for a couple of years. Their spiel and deals seem reasonable, their farms intriguing to read about, and they appear to be a legitimate operation, but it is always good to hear from someone actually invested with them. We bought our 24 ac farm in UT, so AcreTrader will have to wait until next year, but I intend to invest with them to diversify my investment portfolio.
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Thanks for mentioning this. I often wondered how to invest in farmlands in a more relaxed manner. This looks like it is exactly up my alley.
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A better option in my opinion is Gladstone Land Corporation (stock name LAND). They buy quality farms, then leaseback to the farmer. Best thing is they pay MONTHLY dividends, not annual like AcreTrader. Works for me!
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I’m going to disagree on that one. LAND is a REIT that was down 50% in the first 3 years (2013 to 2016). It only recovered to break even early this year and basically all of its gains come from this calendar year.
It’s a different way to participate in agriculture, but that volatility is not consistent with the value of farmland over that same time period.
Best,
-PoFReply
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Thank you for this great article and great opportunity! I really like that this provides an unleverarged opportunity. I read your post about concerns of investing in real estate property through a custodial IRA as it gets complicated.
What are your thoughts of investing in acre trader through a ROTH IRA. Is this possible? Since a significant amount of expenses are not expected, I feel it might be easier to accomplish than buying rental properties through an IRA for instance. Thank you!
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Thanks for the review. I am considering this option. Have a few questions.
1) Did you receive any referral fees or compensation for writing the review?
2) After the investment, were there any improvements needed that required additional capital by the members?
3) How often Acretrader shares fair market value of the land with you?
4) How often do you get to see financials of the LLC that bought the land?Thanks in advance
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Happy to answer Prashant.
1) Addressed in the post. I was not compensated for the review, but I do have a referral relationship with AcreTrader. “To see current listings and be notified in advance of future offerings, you can create an account with AcreTrader here. Note that this is a referral link, as are a number of other links in this review. This site may be compensated when you register for an account, enhancing our charitable mission.”
2) No. This would be highly unusual for this type of investment.
3) They do not update the net asset value for investors. When sold, the true fair market value will be determined and realized.
4) Several updates on the farm are sent throughout the year; I have not requested to see the financials of the underlying LLC. AcreTrader could provide more information.
Best,
-PoFReply
Thank you for addressing my questions. This is very helpful.
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I wish something like this existed in Australia! Especially with all the agriculture we have.
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I’m trying to understand the “losses.”
For most real estate investing that indicates depreciation, but that doesn’t apply to land right?Reply
Hi – this is Gentry with AcreTrader. I am not a tax professional and so I can’t give tax advice here, but to speak to this question – interestingly enough, there is no depreciation on farmland itself. It simplifies farm investing accounting for all holders and seems to be an accurate assessment. However, if a farm has improvements (e.g., a dwelling, barns, sheds, underground infrastructure) there may be annual depreciation expense. While residential and commercial real estate often require constant repairs, improvements, and other maintenance in order to preserve or increase value, farmland does not for the most part. You would typically see this kind of situation with permanent crops where the Almond trees, for example, could be depreciated over the life of the investment. I would recommend seeking out tax advice from your CPA or tax advisor to better understand the nuances and tax implications of one offering/state to the next.
The following summary information regarding taxes is being provided as an educational guide to investors on the potential tax impacts of investing in farmland. This information in no way should be interpreted as tax advice since we are not accountants. Every investor’s financial situation is different and we have no knowledge of those facts or circ*mstances. We cannot predict how the tax rules promulgated by the Internal Revenue Service will apply to an investor’s personal tax return. You are strongly encouraged to consult with your CPA and/or tax advisor on these issues.
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I’m also wondering about K1s and having to file multi state tax returns. Do I have to file a different state tax return in each state that I invest in AcreTrader?
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Hi – this is Gentry with AcreTrader. I am not a tax professional and so I can’t give tax advice here, but to touch on your question, the short answer is ‘no, not in most cases”. Wherever possible, AcreTrader Management will file the Company’s return for the state in which the Property is located. If the Property is located in a state where you file returns, you will likely need to include your K-1 on your state income tax return. Please consult your tax advisor about your specific situation.
The following summary information regarding taxes is being provided as an educational guide to investors on the potential tax impacts of investing in farmland. This information in no way should be interpreted as tax advice since we are not accountants. Every investor’s financial situation is different and we have no knowledge of those facts or circ*mstances. We cannot predict how the tax rules promulgated by the Internal Revenue Service will apply to an investor’s personal tax return. You are strongly encouraged to consult with your CPA and/or tax advisor on these issues.
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When investing with AcreTrader, what tax documents do they issue each year? I don’t mind putting a 1099 into TurboTax, but K1’s definitely get more complicated. Will I have to start filing a California state tax return if I invest in one of their almond farms? Thanks
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Hi – this is Gentry with AcreTrader. I am not a tax professional and so I can’t give tax advice here. But, to speak to your question generally, a farmland K-1 is usually very simple, so you can expect this to be one of the first tax documents you receive. Our goal is to send all K-1s electronically to Members early each year (typically in February), but each Property may rely on outside reporting, or require additional time to furnish the forms in a way that is to the investor’s best advantage. Regarding state tax returns, AcreTrader’s CPA is typically able to pay state taxes, estimated withholding, and local property taxes on behalf of the LLC.
The following summary information regarding taxes is being provided as an educational guide to investors on the potential tax impacts of investing in farmland. This information in no way should be interpreted as tax advice since we are not accountants. Every investor’s financial situation is different and we have no knowledge of those facts or circ*mstances. We cannot predict how the tax rules promulgated by the Internal Revenue Service will apply to an investor’s personal tax return. You are strongly encouraged to consult with your CPA and/or tax advisor on these issues.
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I just wanted to say what a small world it is – I’m a livestock farmer, so when I saw the link to this, I was curious as to what “AcreTrader” was! Imagine my surprise as I’m scrolling through and see your picture of soil from Des Arc, Arkansas – a town about 5 miles from my small community! Thanks for the kind words about the importance of the farming industry, it’s nice to see positive support of farmers!
Love your blog!
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That’s incredible, Sara! It truly is a small world.
I’ve never been to Des Arc, but I’ve seen aerial photos, get updates on the climate, soil, and crops, and have a little vial of topsoil from “my farm” down there.
Cheers!
-PoFReply
This is a brand new investment opportunity so thanks for bringing it to our attention. For years I have followed Darren Doyle’s work with coffee farms in Panama and cacao farms in Belize, and I’ve been interested but being a city girl felt it was too steep a learning curve. (Even though I wouldn’t be doing the farming I still didn’t think I could soundly vet the deals). This seems less risky b/c at least it’s not international, so good to know about.
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Thus far, they’ve only worked with U.S. farms and the investment is open to U.S. citizens and residents. That does decrease the political risk and currency risk, in my opinion.
The lack of debt (leverage) in most acquisitions also dials down the risk.
Best,
-PoFReply
Totally excited about this option and just set up my account! Thanks so much for this information.
I’ve been futzing around with what to do with a chunk of money in my self directed IRA and this may hit the spot. I love that the purchases are unleveraged.
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I’m glad you found your answer, and welcome to the world of farming!
Lemme grab you a pitchfork and we’ll get to work.
Cheers!
-PoFReply
Thanks for sharing your experience and your plethora of great content! I love the idea of investing in farmland and farmers, but shouldn’t we encourage people to vote with their dollar? Soybean, corn, and other monocrop agriculture is destroying our soil and adding more junk to our standard American diet. Does AcreTrader give us the option to invest in regenerative agriculture? At the risk of sounding like a tree-hugger, who doesn’t love making money and doing a little good for the environment and the health of our population? Interested in your thoughts!
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Hi – this is Michael from AcreTrader and I wanted to thank you for the sentiment, and share a thought and some data related to how we view this topic. First, just wanted to note that we have actually provided investors options to invest in farms producing apples, almonds, cherries, rice, watermelons, sweet potatoes, and others in addition to the larger commodities. You can see some of the details from closed deals on our Offerings page.
Currently over 80% of crop revenues in the the United States come from just three crops: Corn, Soybeans, and Wheat. So, for someone investing in the Ag sector, these crops would be difficult to ignore. These are the main commodities that are grown across the Midwest and in other areas of the country, not because the farmers are forced to grow them, but they are often the most profitable crop for the farmers – and they have to make a living as well. We view an investment in the land as essentially “buying an option” on any of the crops that the soils and climate would support, and we work with farmers to improve the sustainability and soil quality on the farm as well as the profitability of their operation.
Final thought – About 1% of U.S. farmland is currently operating in certified organic production. We’ve funded a multiple organic offerings, and plan to continue as opportunities arise, but there are not enough opportunities with reasonable financial models to make this 100% of our investment opportunities. This article in Successful Farming actually details a relationship that we have with a farmer producing organic sweet potatoes and edamame. In this scenario we are actually working with a farmer to convert a conventional farm to organic production:
https://www.agriculture.com/where-real-estate-and-farming-meet-0Reply
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