AcreTrader: Why We Like It
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By Patrick Ward
Reading Time: 4 minutes
In the ever-evolving landscape of investment opportunities, one platform that has been gaining deserved attention is AcreTrader because it has almost single handedly changed the way individuals invest in farmland. While this may not sound like a big deal, it very much is. With inflation, we all need every financial tool we can get.
Unfortunately, you need to be an accredited investor to take advantage of AcreTrader, but if you’re interested in investing in real estate to grow and preserve your wealth, that day is probably closer than you think.
Below, we’re going to do a quick dive on why we like AcreTrader, and why we think you should put it on your investment radar if it isn’t already.
1. Quick and Easy Way to Diversify
One of the foremost benefits of investing through AcreTrader is the opportunity to diversify your investment portfolio with an asset that is well known among investors for its stability.
Historically, farmland has exhibited low volatility, and studies suggest that it is a better hedge against inflation than gold and oil. If your parents have been screaming at you to invest in gold for the past five years, you now have something you can scream back.
2. Lower Buy-In
Traditionally, investing in farmland required a significant amount of capital and certain amount of expertise. As you might imagine, these two barriers severely limited the investor pool.
With AcreTrader, however, it’s possible to invest with as little as $10,000 on many properties. Because of this, AcreTrader has effectively democratized farmland investing by allowing fractional ownership.
Fractional ownership?
Fractional ownership allows multiple investors to collectively own a single asset, such as farmland, without the need for each investor to purchase an entire property. Instead, investors buy shares in the asset/ farmland.
With fractional ownership, investing in high-value assets is more accessible to a wider range of investors because it lowers the financial barrier for entry.
3. Only High-Quality Farmland Properties are Listed
The team at AcreTrader selects each and every piece of farmland listed on their site. Due diligence is always the word of the day when it comes to real estate investing (no matter what your plan is), so it’s nice, for once, to be able to relax a bit on this one.
Because AcreTrader only works with experienced farm operators to ensure the properties meet stringent investment criteria, investors, in turn, can benefit from AcreTrader’s expertise to gain access to high-quality farmland investments. It’s kind of like having the inside scoop on which horse to bet on.
4. Passive Income & Capital Appreciation
Farmland generates income through agricultural activities such as crop production or leasing to farm operators. AcreTrader handles the property management, which includes leasing the farmland to farmers, overseeing agricultural operations, and distributing rental income to investors.
As we’ve discussed, farmland has historically appreciated in value over time. Its stability boils down to three constants: food demand, population growth, and a limited supply of arable land. As a result, investing in farmland can provide investors with a steady stream of passive income when done right. Over the long term, investors may even benefit from capital appreciation.
5. Regular Updates on All Properties
Investors get access to detailed information about each property listed on the platform, including location, soil quality, crop history, and potential returns. Additionally, AcreTrader conducts regular updates and reports to keep investors informed about the performance of their investments. This transparency helps investors make informed decisions and stay up-to-date about the progress of their investments.
6. Great Potential for Social and Economic Impact
Farmland plays a crucial role in global food production and contributes to sustainable agriculture practices such as soil conservation, biodiversity preservation, and water management. By investing in it, investors can support responsible land stewardship practices and contribute to the production of nutritious food for growing populations. Meaning it’s kind of like voting with your wallet.
Furthermore, AcreTrader offers opportunities for investors to participate in conservation projects or sustainable farming initiatives. Simply put: with AcreTrader you can align your investment goals with your values.
Conclusion
AcreTrader offers a compelling option for investors seeking to diversify their portfolios. With fractional ownership, AcreTrader provides investors a much more accessible way to invest in farmland. Whether you're a seasoned investor looking to add farmland to your portfolio or a newcomer interested in exploring agricultural investing, AcreTrader offers a gateway to the world of farmland investment with multiple powerful benefits and opportunities for growth.