AcreTrader Platform for Investing in Farmland
Anyone have any experience investing on the AcreTrader platform? It looks quite promising, being able to invest in farmland, and reap returns on both the income from it, as well as potential appreciation. I think the only thing for me might be the long term holding period, but it looks like they're creating a secondary market for shares on their platform. Would appreciate any feedback from anyone that has used it. Gonna separate the words acre trader in case someone is searching for it here. Thanks!
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None with AcreTrader, but we have done an offering through Harvest Returns, which is similar. HR does farms and agribusinesses though, so a bit more diverse.
I am curious to see how they are calculating their net annual return, seeing 8-11% on row crop farmland seems very high unless they are assuming a certain amount of appreciation, a certain hold period, and a sale. All of those factors are speculative. I can see 8%+ on specialty or permanent crops though. Also some agribusinesses.
Take a close look to see if that's how they are calculating their returns. I typically can't get row crop AG to pencil out any better than maybe 3-6% annual CoC return as leased farmland even if I held it directly, not much meat on the bone there to bring in investors unless you are factoring in big appreciation and a sale. Could be different in areas outside of my own I suppose.