The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.
American farmland has become one of the most sought-after real estate asset classes by institutional investors due to the rapidly growing demand and its importance to the U.S. economy and the global food supply.
Real estate crowdfunding platforms such as AcreTrader are now giving retail investors access to the same types of farmland investments that Bill Gates and companies like TIAA have been pouring capital into.
Why Farmland?: The U.S. is the top food producer in the world, with $164 billion in agricultural exports expected in 2021. This will be an increase of over 26% since 2016 and that number is likely to continue growing for the next several decades as the global demand for food is expected to increase by 60% by the year 2050.
Unlike most other exports, the production of agricultural products can’t simply be increased by building more factories and hiring more workers. In fact, the available farmland in the U.S. is shrinking at a rapid pace. This will mean a growing demand for farmland and increasing prices for commodities such as corn, soybeans and wheat.
New Investment Offering: AcreTrader’s latest farmland offering is for Brown Oak Farm, a 524-acre property located in Gem and Owyhee counties in the heart of the Treasure Valley of Idaho.
Brown Oak Farm offers broad options for crops, having historically produced alfalfa, onions, corn, sugar beets and potatoes. The Treasure Valley is known for its moderate climate, which supports high crop production.
- Farm Price: $3,982,473
- Minimum Investment: $22,800
- Target Net Annual Return: 8.2%
- Target Investment Term: 5-10 years
The offering is going live on Tuesday, Sept. 14, 2021, at 2 p.m. ET on the AcreTrader platform. Investors are encouraged to sign up on the platform ahead of time since recent farmland offerings have been fully subscribed within hours.
Learn More About Farmland as an Investment: AcreTrader is hosting a webinar titled "Intro to AcreTrader and Farmland Investing" on Thursday, Sept. 16, 2021, which will discuss farmland as an asset class, introduce new types of farm offerings and answer investor questions.
The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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