Farmland real estate investment trusts (REITs), also known as F-REITs, allow investors to buy into farmland without the high cost and expertise required to invest in it directly:
How they work
Farmland REITs buy and own farmland, then lease it back to farmers for a profit. Investors receive regular dividend payments.
Benefits
REITs offer several benefits, including:
Capital for farmers: REITs can provide farmers with capital to expand their farms.
Access to farmland: REITs make farmland accessible to anyone, not just farmers or wealthy individuals.
Portfolio diversification: REIT returns are often not correlated with common equities, which can help diversify a portfolio.
Tax breaks: REITs can benefit from tax breaks.
Examples
Some examples of farmland REITs include:
Iroquois Valley Farmland REIT: Offers long-term leases to organic and regenerative farmers
Farmland Partners: A publicly traded REIT that purchases, leases, and manages farmland in North America
Other ways to invest in farmland include:
Crowdfunding platforms
Platforms like AcreTrader, FarmTogether, and Harvest Returns allow individuals to invest in farmland with as little as $15,000
FarmFundr
A platform that allows investors to take ownership in a real California farm.
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