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AcretraderUNVERIFIED PLATFORM
UNVERIFIED PLATFORM
Acretrader
Buy shares of individual high-quality U.S. farms. Invest in minutes. Diversify your portfolio with an investment in a superior, long-term asset class. No experience required. Direct farmland investing. Expert vetting process.
UNVERIFIED PLATFORM
Highlights
+2.29%
Asset Class Return•30d
#4 Rank
In Farmland•30d
Invest from
$10K
Overview
Easily invest in farmland with AcreTrader. Alongside a rapidly growing global population and demand for food, farmland offers a truly diversified investment opportunity with attractive long-term returns. They select less than 1% of the parcels they review. Each farm and its legal title are placed into a unique entity (usually an LLC). AcreTrader Management will handle all aspects of administration and property management - from insurance and accounting to working with local farmers and improving soil sustainability. You can expect an unlevered yield of 3% - 5% for lower risk properties on top of land appreciation. Although not recommended, you have the ability to exit your investment early through their marketplace.
Things to Know
You make money on
Value + Dividends
Fees
0.75%
Min Investment
$10,000
Payout frequency
Annual
Term of investment
36+ months
Target Return
7% - 9%
Liquidity
Moderate
Open to
Accredited Only
Mobile Application
No
Top Perks
Diverse investments; appealing long-term returns
Get yearly cash yields via farmland rentals
We manage farms, paperwork, and payments for you
Other ways to invest in Farmland
How you make money
AcreTrader is a real estate investing platform offering income-producing shares in farmland. Investors earn money two ways: annual cash rent payments from tenant farmers plus long-term appreciation of the land. Farm cash rents are typically paid once per year, as farmers usually pay rent up front.
How Acretrader makes money
AcreTrader is free to sign up. When you make an investment, there are closing fees, typically 2% of your investment amount. There is then an annual servicing fee of 0.75% of the value of the investment. AcreTrader also charges a 5% fee when the underlying property is sold, but that's paid by the selling farm owner.
Is it safe?
AcreTrader has a short track record, but they have closed almost 60 pieces of property and currently hold $100 million in assets under management. They have an A+ rating with the Better Business Bureau and completed Series A funding with $12 million in March 2021. While weather, climate, crop disease, and pests can be risk factors, their team of land and real estate experts work to limit those risks, only accepting 1% of the farms they review. Cash rents are also paid up front as opposed to at the end of the season. It will be a few more years before AcreTrader sees a farm through the entirety of its holding period.
Established
2018
Country Available
US Only
Assets Managed
n/a
How You’re Taxed
Capital Gains
Profits earned from farmland are taxed like stocks. Investors are subject to short-term capital gains when selling assets owned for one year or less, which are taxed at ordinary income tax rates. Long-term capital gains are applicable when assets are owned for more than one year with tax rates ranging from 0% to 20%, depending on your total taxable income. Any rental income your farmland generates is generally taxed as ordinary income, although if you're materially involved in the farm, you may also be subject to a self-employment tax.
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