FarmTogether Review: How Does Farmland Investing Work?
Investing in farmland has become an interesting option for people looking to diversify beyond traditional investments such as stocks and bonds. FarmTogether is a digital farmland investment platform that gives eligible investors access to U.S. farmland investment opportunities.
Instead of buying and managing an entire farm yourself, FarmTogether allows investors to participate in professionally selected farmland investments. The company focuses on sourcing, analyzing, and managing farmland opportunities across the United States.
In this FarmTogether review, we explain how it works, who can invest, the investment options available, potential benefits, and important risks to consider.
What Is FarmTogether?
FarmTogether is a farmland investment company that provides investors with access to U.S. farmland through several investment products.
According to the company, its team has collectively deployed more than $2.1 billion in capital, and its current platform reports more than $217 million in assets under management, 51 funded deals, and more than 6,900 acres managed.
FarmTogether focuses on farmland as a long-term real asset. Its investment opportunities can include both row crops and permanent crops such as nuts, fruits, citrus, and vines.
The company uses technology and a detailed due-diligence process to evaluate farmland before presenting opportunities to investors. FarmTogether says that less than 1% of deals entering its pipeline are eventually offered on its platform.
How Does FarmTogether Work?
The basic process is designed to be completed online.
Investors can create an account, review available investment opportunities, examine financial and legal information, and choose an investment that matches their objectives.
FarmTogether structures many investments through special-purpose entities, commonly LLCs, that directly own the farmland. Investors therefore receive an ownership interest in the entity associated with the property.
The general process includes:
- Create a FarmTogether account.
- Complete your investor profile.
- Provide proof of accredited-investor status.
- Review available farmland opportunities.
- Examine the property’s financial, legal, and due-diligence information.
- Select an investment amount.
- Sign the required documents electronically.
- Fund the investment.
- Monitor the investment through the FarmTogether platform.
This approach can make farmland investing more convenient than purchasing and managing farmland independently.
Who Can Invest With FarmTogether?
One important point is that FarmTogether is primarily designed for accredited and institutional investors.
For its crowdfunded offerings, the company states that investors must meet applicable accredited-investor requirements. For example, an individual may qualify based on income exceeding $200,000 for the previous two years with an expectation of maintaining that level, or a net worth exceeding $1 million excluding the primary residence. Other qualifying categories also exist.
Therefore, FarmTogether is not necessarily suitable for every beginner investor.
Before investing, you should check the current eligibility requirements and determine whether the specific offering is available to you.
FarmTogether Investment Options
FarmTogether offers several ways to gain exposure to farmland.
1. Crowdfunded Farmland Offerings
The crowdfunded product allows accredited investors to purchase fractional interests in selected farmland investments.
The current minimum investment for these offerings is $15,000, according to FarmTogether’s FAQ.
This can provide investors with access to individual farmland properties without having to purchase an entire farm.
2. Sustainable Farmland Fund
The Sustainable Farmland Fund provides diversified exposure to a portfolio of farmland through one investment.
FarmTogether currently lists a target net IRR of 8–10% and a target annual net distribution of 4–6% for the fund. The company also states that the fund has a two-year lock-up period before its stated redemption structure becomes available.
Investors should remember that target returns are not guaranteed returns.
3. Bespoke Farmland Investments
FarmTogether also offers bespoke investments for investors who want more customized farmland exposure.
The company currently lists a minimum of $3 million in equity per farm for its sole-ownership bespoke product.
This option is therefore aimed at high-net-worth investors and institutions rather than ordinary beginners.
4. Separately Managed Accounts
FarmTogether also provides separately managed accounts designed for larger investors seeking customized, multi-asset farmland investment mandates.
The company lists a minimum investment of $20 million for its SMA product.
How Does FarmTogether Make Money for Investors?
Farmland investments can potentially generate returns in two main ways:
Rental or Operating Income
Farmland can generate income through rental payments or agricultural operations.
Depending on the structure of a particular investment, income may come from lease payments or farm operating revenue.
Appreciation
The second potential source of return is appreciation in the value of the farmland.
If a property increases in value over the investment period and is eventually sold, investors may benefit from the increase, subject to the specific investment structure and applicable fees.
FarmTogether explains that farmland returns can come from both income and appreciation.
What Makes FarmTogether Different?
One of FarmTogether’s main selling points is its due-diligence process.
The company says it evaluates farmland using a 105-point due-diligence checklist. The process can include reviewing soil, water, title, environmental considerations, capital improvements, local legislation, labor costs, and other factors.
The platform also uses proprietary sourcing technology and relationships with agricultural professionals to identify potential investments.
For investors, this means they do not necessarily need to conduct all of the research and property analysis themselves.
Benefits of FarmTogether
There are several potential advantages to using FarmTogether.
Access to Farmland
Investors can gain exposure to farmland without personally purchasing and managing an entire agricultural property.
Portfolio Diversification
Farmland can provide another asset class alongside stocks, bonds, and other investments.
Online Investment Process
FarmTogether provides an online platform where eligible investors can review investment opportunities, documents, and portfolio information.
Professional Due Diligence
The company performs extensive research before offering investments on its platform.
Multiple Investment Strategies
Investors can choose among different products depending on their eligibility, investment size, and objectives.
Potential Risks of FarmTogether
Although farmland can offer attractive diversification, it is important to understand that FarmTogether investments are not risk-free.
Illiquidity
Farmland investments are generally long-term investments. FarmTogether’s product information shows typical hold periods of around 8–12 years for some offerings.
This means investors should not invest money they may need in the short term.
Agricultural Risk
Farming depends on weather, water availability, crop prices, disease, operating costs, and other factors.
Poor growing conditions or lower commodity prices can affect the performance of a property.
Market Risk
The value of farmland can rise or fall depending on local real estate conditions, agricultural demand, interest rates, and other economic factors.
Investment Minimums
The minimum investment can be significant. Crowdfunded opportunities currently start at $15,000, while other FarmTogether products require substantially more capital.
No Guaranteed Returns
Target returns and historical farmland performance should not be interpreted as guarantees of future results.
Investors should carefully review the offering documents before committing capital.
FarmTogether Fees
FarmTogether states that fees vary depending on the product and individual investment opportunity.
For crowdfunded offerings, the fees are displayed on the relevant investment opportunity page.
Before investing, review all applicable fees because fees can affect your overall investment return.
Is FarmTogether Legit?
FarmTogether is an established farmland investment company that provides investment opportunities in U.S. farmland.
However, legitimate does not mean risk-free.
FarmTogether states that its crowdfunded offerings are private placements offered under Regulation D, Rule 506(c), and that the offerings are subject to applicable U.S. securities laws and regulations.
Potential investors should review the legal documents, fees, risks, investment timeline, and eligibility requirements before investing.
Is FarmTogether Good for Beginners?
FarmTogether may be useful for investors who already understand alternative investments and meet the company’s eligibility requirements.
However, it may not be the best starting point for someone who is completely new to investing.
The minimum investment of $15,000 for crowdfunded offerings is also considerably higher than many beginner-friendly investment platforms.
If you are considering FarmTogether, make sure you understand:
- How long your money may be invested
- The specific property or fund
- Expected income and target returns
- Fees
- Tax considerations
- Liquidity restrictions
- Agricultural and market risks
FarmTogether vs. Traditional Real Estate
FarmTogether is different from buying a traditional rental property.
With a rental property, an investor may purchase a house or commercial property and manage tenants directly.
With FarmTogether, eligible investors can participate in farmland investments while the investment structure and professional management handle many of the operational responsibilities.
This can make farmland exposure more passive, but investors have less direct control over the underlying farming operations.
Frequently Asked Questions
What is FarmTogether?
FarmTogether is a farmland investment company that provides eligible investors with access to U.S. farmland investment opportunities.
What is the minimum investment on FarmTogether?
The minimum for FarmTogether’s crowdfunded offerings is currently $15,000. Other products have substantially higher minimums.
Does FarmTogether guarantee returns?
No. Investment returns are not guaranteed. Target returns and distributions are estimates or objectives and can vary depending on investment performance.
Can anyone invest in FarmTogether?
No. FarmTogether primarily serves accredited investors, family offices, advisors, and institutional investors. Eligibility depends on the specific investment product.
How does farmland generate returns?
Farmland can potentially generate income through rent or agricultural operations, while appreciation in the property’s value may provide another source of return.
Is FarmTogether a REIT?
No. FarmTogether states that it is not a REIT. Its crowdfunded investments can involve ownership interests in entities that directly own farmland.
How long do FarmTogether investments last?
Investment periods vary by product. FarmTogether currently lists 8–12-year hold periods for certain products, while other products have different structures.
Final Verdict: Is FarmTogether Worth Considering?
FarmTogether provides an alternative way for eligible investors to gain exposure to U.S. farmland without purchasing and managing an entire farm themselves.
Its main advantages include access to professionally selected farmland, online investing, diversification, and multiple investment structures.
However, the platform is primarily aimed at accredited and institutional investors, and farmland investments can involve significant minimum investments, long holding periods, limited liquidity, and agricultural risks.
For investors who meet the eligibility requirements and are looking for long-term diversification, FarmTogether may be worth researching. However, you should carefully review each investment opportunity and consult qualified financial, tax, and legal professionals before investing.
Important: This article is for educational and informational purposes only and should not be considered financial, tax, or investment advice. Investment performance can vary, and past performance does not guarantee future results.https://qalinsoom.com/best-online-business-2026/
