This Farmland Investment May Make A Great Addition To Your Portfolio

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.

Land is one of the oldest investment vehicles in existence and has arguably been the greatest wealth builder in history.

The real estate investment platform AcreTrader has opened up this asset class to individual investors through crowdfunding, creating passive investments in farmland. 

The Offering: AcreTrader’s newest offering is for Anderson Farm, a 111-acre corn and soybean farm located in Bureau County, Illinois. The farm has a Productivity Index of 135, out of 147, compared to the county average of 123.

Anderson Farm was acquired as part of a sale-leaseback with the farm owner, who will continue his operation on the farm for the next 3 crop years at a base rate of $280 per acre. The lease includes a provision that provides the possibility of additional rental income given the potential upside in crop yields or commodity prices.

Investment Details:

• Minimum investment: $9,860
• Projected net annual return: 7.5%
• Projected gross cash yield: 2.7%
• Investment term: five to 10 years

View offering on AcreTrader

Why Invest In Farmland? Farmland has been attracting some serious investors lately. Bill Gates become the largest owner of farmland earlier this year and several institutional investors have holdings in the asset class due to its low volatility and consistent returns. 

Farmland returns have been positive every year since the NCREIF Farmland Index was first published in 1991, and the demand is increasing as the global population increases and farmland acreage shrinks. 

How To Invest: Investments can be made directly through AcreTrader’s platform here. While offerings are only available to accredited investors, the company encourages non-accredited investors to sign up on the site, since they are working toward providing options for all investors.

Photo: courtesy of AcreTrader

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.