How It Works

Learn about how farmland investing works on AcreTrader

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Explainer (2:15)
Farm Selection & Entity Creation

We select a tiny fraction of the parcels we review, ensuring each offering is of the highest quality. Each farm and its legal title are placed into a unique entity (usually an LLC).

  • The unique entity establishes a real estate contract with the land owner and is provided time to complete due diligence, legal work and raise funds on AcreTrader. The typical time period for this is 30-90 days.

Each entity is divided into fractional shares. You may purchase any amount of shares at or above the minimum investment.

  • Our online process can be completed 100% electronically. Or, if you prefer, feel free to contact us for help through the investment process.
Farm Management

AcreTrader Management handles all aspects of administration and property management, from insurance and accounting to working with local farmers and improving soil sustainability.

  • We work closely with our farmers and external managers to help with best practices, technological improvements, sustainability, and immediate access to capital. Our goal is to improve our farmers’ lives and ease of doing business in every way possible.
  • AcreTrader farmers pay cash rent, a highly common relationship between farmers and landowners (nearly 40% of all U.S. farmland is rented or leased).
  • The unique entity usually receives the rent in advance of planting season, so you take virtually no crop risk, weather risk, etc. The rent is kept in a unique bank account held by the entity to reserve against any taxes owed or potential capital improvements until payout in December.
  • We charge a flat annual administration fee of 0.75% (of overall farm value) that is typically deducted from the income of the farm.

AcreTrader disburses excess annual income to investors. Historically, this asset class has an unlevered yield of 3% - 5% for lower-risk properties.* Note that this cash yield is in addition to expected annual value appreciation.

  • We pay out cash distributions each December to investors in each farm. We will provide any necessary tax documentation by February of the following year, well in advance of tax season.

*Source: USDA NASS Historical Land Values and Cash Rents over a 50-year period.

Distributions paid are not solely based upon performance and are not guaranteed in frequency or amount. Distributions will be paid from net investment income, offering proceeds, borrowings, or reimbursable expense support, subject to certain conditions being met.

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Feel free to contact us at any time. Additional resources available below or in our Frequently Asked Questions section.