Looking For A High-Yield Investment Opportunity Outside Of Stocks? This Pistachio Orchard Has A 7.9% Target Net Cash Yield

In the quest for lucrative and stable investment opportunities, farmland can present a compelling option – often overshadowed by traditional asset classes. The latest offering from FarmTogether, Woodland Pistachio Orchard, stands out as a prime example of farmland’s investment potential, offering a target net cash yield of 7.9%.

Woodland Pistachio Orchard

Situated in the heart of Yolo County, California, just two miles west of Sacramento International Airport, the Woodland Pistachio Orchard is a turnkey investment opportunity in a prime location. The orchard spans 117 contiguous gross acres, with 104 acres dedicated to high-yielding Kerman variety pistachio trees. Due to its maturity, the orchard is expected to start generating cash flows for investors from the 2024 crop in 2025.

A key advantage of the Woodland Orchard is its access to dual water sources. With riparian rights to the Sacramento River and an on-site well, the orchard is well-equipped to sustain long-term productivity. The property will be managed by Liberty Land Management LLC, which oversees 4,500 acres of nut crops. The orchard should benefit from expert handling by principal operator Lee Smith, who brings over 15 years of experience in California agriculture.

Woodland Pistachio Orchard boasts impressive projected financials, including a 13.8% target net IRR, a 7.9% target net cash yield and a 3.1x target net multiple on invested capital.

Farmland As An Investment

Farmland has consistently demonstrated strong performance, with approximately 11% total average annual returns from 1992 to 2022, surpassing the 9.5% total return of U.S. stocks in the same period. Its historically low volatility, uncorrelated returns with traditional assets and historically effective hedge against inflation have made farmland an attractive option for investors seeking stability and diversification. The vital role of farmland in the global economy, coupled with its decreasing supply, further underscores its potential value as a scarce and essential asset.

The unique attributes of farmland have caught the attention of institutional investors, leading to a significant increase in farmland funds. From fewer than 20 in 2005, the number of farmland funds grew to 200 by 2022, with an aggregated AUM of $46 billion. This trend reflects the growing recognition of farmland as a potentially robust diversification tool in a range of investment portfolios.

FarmTogether's Woodland Pistachio Orchard exemplifies the potential of farmland investments, particularly for those exploring alternatives to the stock market or traditional real estate. Given Woodland's strong projected financials and the inherent stability of farmland, this investment stands as a noteworthy opportunity for diversifying portfolios and tapping into the unique opportunities that agricultural properties can offer.

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