AcreTrader touted a new listing consisting of 270 acres in the Missouri bootheel that historically grows soybeans and cotton, but the listing notes the soil types are suitable for some of the regions specialty crops, although the basic information I saw doesn’t say what those are. It requires a minimum investment of $23,250.
As a start-up, AcreTrader is still early in its funding rounds. Earlier this week it announced it raised $12 million in Series A funding round. As a company grows and matures, its funding rounds progress from A to B to C. You can learn more about AcreTrader and its recent funding efforts here: https://www.acretrader.com/…
In the other example, FarmTogether announced it closed the “largest single-asset crowdfunded farmland investment to date” on a 201-acre organic apple orchard in Washington state for $22 million. It plans to replant the orchard with two organic apple varieties and includes an operating deal with Stemlit Growers, one of the largest tree fruit growing, packing and shipping companies in the state.
“The continued growth we’ve witnessed validates our mission to provide investors with greater access to farmland investment opportunities while simultaneously channeling funding for the transitions necessary to support sustainable and profitable farming. Through our offerings, we’re able to leave a lasting and positive impact in more ways than one,” said Artem Milinchuk, CEO of FarmTogether, in a press release. You can read more on this investment here: https://farmtogether.com/…
One of the differences between these two companies appear to be their focus on sustainability, but I’m sure there are plenty of other differences between the two. But the commonality — the ability to invest in farmland and agricultural operations without having to buy the whole farm — offers an interesting alternative to consumer investors who don’t want to own a farm outright.
Is this business model likely to overtake the farmland market? Highly unlikely, especially since farmers continue to dominate the buying pool. However, if you are interested in investing in different ways, perhaps adding some specialty crops to your financial portfolio or investing in a farm in a different geography than yours, these new ways to invest may be one way to do it.
Katie Dehlinger can be reached at firstname.lastname@example.org
Or follow her on Twitter @KatieD_DTN
(c) Copyright 2021 DTN, LLC. All rights reserved.