AcreTrader is a newer crowdfunded investment platform letting people buy shares in farmland. Founders unveiled it in 2018 and have been making speedy progress ever since. Additionally, there are plans in place for major growth as new projects pop up this year.
There are two major points that make this an attractive investment:
The minimum investment amount will vary for each individual project.
For example, the three most recently closed deals were:
These are on the high side as they are fairly large projects.
Depending on the total size of the project, price per acre and a few other factors, most offerings require a minimum initial investment of $10,000 to $25,000. This minimum investment will usually be the equivalent of one to four acres. This is based on the fact that most farmland sells for $3,000 to $10,000 per acre.
According to data on AcreTrader’s site, minimum investments range on average from $10,000 to $25,000. To date, they have closed on 8 farming sites.
The annual average investment returns on AcreTrader projects are between 9% and 11%, which is considered a healthy rate of return when compared to other real estate investments.
Investors can expect to see profits in two ways:
Depending on the structure of the deal, there may also be potential for investors to profit from proceeds from the yearly harvest.
At this time, you must be an accredited investor in order to buy into AcreTrader projects at any minimum level.
These investors meet extremely strict requirements that let them buy into projects that smaller investors could not afford.
Criteria to be accredited include:
As you can see, this really limits who is allowed to invest in AcreTrader projects, but these restrictions are due to strict regulations from the SEC to protect smaller investors. It is possible that over time this will change as the platform becomes more established.
Investing in real estate is a solid choice, and farmland in particular is a wise option. There will be upcoming projects that require a smaller initial minimum investment, so keep an eye out and consider joining the AcreTrader email list for the latest updates.
Also remember that helping support farmers plays an integral in the well-being of the country. Farmers grow much-needed crops for families, and that need is going to expand over time.