First Look At Newest Farmland Investment Offering With 11% Target Annual Return

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.

Farmland has been one of the most underrated real estate investments available, but easier access to this asset class has been opening a lot of investors’ eyes to the upside that farmland investing can provide. 

Why Invest In Farmland? Agricultural goods are the United States’ largest export, totaling $135.7 billion in 2020 and $164 billion expected for 2021. While the demand for U.S. produced crops continues to grow globally, the available acreage for farming is steadily decreasing as land is converted for development. 

This growing scarcity has been driving the demand for farmland at a steady pace, resulting in an average annual return of 11% over the last 20 years.

While farmland investments have historically been reserved for institutional investors, platforms like FarmTogether have opened this opportunity up to individual investors by allowing them to purchase shares of farmland assets. 

Latest Offering: FarmTogether’s latest offering is for Goldenrod Pecan Orchard, 410 plantable acres that will be developed into a pecan farm along Oklahoma’s southern border. The development is expected to take five years to allow time for the trees to mature. 

Investment Highlights: The farm will be leased by an experienced operator and begin paying an annual base rent equal to 5% of the purchase price in year one plus crop share of 20% of gross crop revenue until 2033 then 5% thereafter.

• Target Net IRR: 11.2%
• Target Average Cash Yield: 6.1%
• Target Equity Multiple: 2.7x

Details on the offering can be found on FarmTogether’s website and the company will be hosting a webinar on Monday, September 13, 2021.

Photo: Marcia Cripps on Unsplash.

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.