AcreTrader Review: My Investment in Cash-Flowing Farmland

In 2019, I made my first farmland investment via AcreTrader, an agricultural investing platform, and I’ve now had a couple of years of experience with the company to aid in writing this AcreTrader review.

I grew up in a small farming community in southern Minnesota, and several of my friends lived on farms. I got to enjoy the freshest sweet corn every summer, hayrides and big bonfires in the fall, and those farm kids contributed to one great wrestling team in high school.

An AcreTrader Review

The Jumpstart Our Business Startups (JOBS) Act of 2012 gave millions of Americans access to investments previously available only to institutional investors.

The company was founded in 2018 by CEO Carter Malloy, but the seeds go much further back. Carter, whom I had the pleasure of meeting at a conference in 2019, grew up in a farming family in Arkansas, but he took a different path, earning a degree in physics and eventually joining a large private investment bank as an equity research analyst.

Why Invest in Farmland?

People gotta eat! If it weren’t for farmers and farmland, I wouldn’t be able throw down on some Triscuits and cheese, Cobb salad, or a sirloin steak. I could probably cobble some sort of salad together with a garden and a green thumb, and I’ve managed to grow some hops at home, but modern agriculture makes it infinitely easier to enjoy an incredible variety of foods ’til the cows come home.

How AcreTrader Makes Money

AcreTrader acts as the real estate brokerage when they buy and sell farmland, profiting from the 5% or so in transaction fees. Again, this is consistent with the Republic Real Estate model.

Selecting Farms

When you review current offerings, you’ll see grades assigned to each investment that can vary from a high score of A down to a low score of D. I wouldn’t expect to see a farm with an exceptionally low score offered — those would hit the cutting room floor, but those with a sub-A grade would represent a farm with more risk and potentially more reward.

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