With the development of internet technology, more and more farmland investing platforms have emerged to make farmland investment more convenient. These platforms provide diverse options for investors who want exposure to the farmland asset class. By reviewing the features, pros and cons of major farmland investing platforms, investors can better understand this investment approach and find the right platform that caters to their investment needs.
Farmland investment platforms enable direct or indirect farmland ownership
Many farmland investing platforms serve as marketplaces that connect investors with farmland investment opportunities. Investors can choose to directly purchase physical farmland assets listed on the platforms. Alternatively, some platforms offer fractional farmland ownership through funds or REITs, which allows investors to gain exposure to a diversified portfolio of farmland assets with lower capital requirements.
Due diligence provided by platforms reduces risks for farmland investors
Reputable farmland investing platforms conduct rigorous due diligence on the farmland assets listed. This due diligence includes financial analysis, evaluation of operators, assessment of soil quality, water availability, and other factors that impact the productivity and value of farmland. Such due diligence helps mitigate risks and prevents investors from putting money into low-quality assets.
Automated investing features cater to passive farmland investors
Many farmland investing platforms provide automated investing options, which are suitable for passive investors. Investors can opt to have their funds automatically allocated into different farmland assets or funds to achieve instant diversification. The platforms also handle ongoing management and harvesting distributions on behalf of investors, creating a hands-off farmland investment experience.
Lower investment minimums increase accessibility of farmland investing
Compared to traditional farmland investing that often requires millions in capital, online farmland investing platforms allow investors to participate with much lower minimums. Some platforms offer investment options starting from a few thousand dollars. This improved accessibility enables more investors to allocate a portion of their portfolio into farmland assets.
The emergence of online farmland investing platforms has transformed the approach to investing in farmland. By providing more options, due diligence, automation, and accessibility, these platforms are making farmland a viable asset class for more types of investors. However, investors still need to evaluate platforms carefully based on their specific needs.