At Alts, we like to focus on the ideas that other people aren’t talking about – the hidden gems of alternative assets.

And there may be no greater hidden gem than farmland investing. 

Over the past three decades, U.S. farmland has generated returns on par with the S&P 500 – with roughly a third of the volatility.

Despite this compelling historical performance, most investors know little about the farmland market – or how to access it.

Today, we’re digging deep into this market with a spotlight on FarmTogether, an investment manager bringing creative capital solutions to U.S. farmland through a range of flexible investment structures.

Since its launch in 2017, FarmTogether has helped provide accredited investors access to high-quality investment opportunities in a market otherwise dominated by large institutions. 

As one of the first innovators in the space, the firm has since closed over 50 farmland deals across 8 states and 15 crops. 

Today, FarmTogether manages over $209 million¹ across 5 distinct structures (unheard of in this space), including their flagship Crowdfunded Offerings, Sole Ownership Bespoke Offerings, Tenancy in Common (supporting 1031 exchanges), Separately Managed Accounts, and the FarmTogether Sustainable Farmland Fund (more to come on this later).

FarmTogether’s latest deal features an 80-acre high-production mandarin grove in California, backed by a strong operating history and targeting an 11.1% net IRR and a net cash yield of 9.4%. 

[Jump straight to offering]

In this issue, we’ll review the opportunity, as well as FarmTogether’s evergreen fund. Along the way, we’ll cover:

• How farmland can offer stable returns while helping hedge against inflation
• Why a generational shift among U.S. farmers is bringing more deals to the market
• How FarmTogether’s focus on sustainability and long-term stewardship adds value
• And how investors can begin building a diversified farmland portfolio

Let’s go 👇

How Does Farmland Investing Work?

There’s a simple reason investing in farmland is so easily overlooked.

Unlike startups or crypto, farmland doesn’t come with 100x overnight return potential – and that’s exactly the point. 

Farmland investing is about long-term stability, capital preservation, and steady value creation. It isn’t about swinging for a grand slam; it’s about consistently getting on base and building wealth over time.

This relative stability stems from several key factors:

• Dual Return Streams: Farmland typically generates returns through a combination of land value appreciation and annual income (either through rent or direct operations).²
• Inflation Protection: Unlike traditional investments like equities and bonds, farmland has historically shown a positive correlation to inflation³ (as measured by CPI), offering a potential hedge. 
• Favorable Supply-Demand Dynamics: Finally, global food demand is rising while arable farmland is decreasing. I recently learned that by 2050, the world will need to produce 50% more food to feed a projected population of nearly 10 billion, all while total farmland continues to decline due to development and climate change. 

These fundamentals help explain why farmland investing has long been a compelling asset –  even if it’s been out of reach for most.

But beyond the long-term case, there are several reasons why now may be an especially timely moment to invest. 

US farmland is fractured, but consolidating

The total value of all US farmland is estimated at approximately $3.5 trillion. For perspective, US equity markets currently have capitalization of around $52 trillion.

Yet, unlike public markets, farmland’s ownership is highly fragmented.

In the US, an astonishing 97% of all farms are family-owned. And while larger industrial farms can be more productive, family operations still generate 83% of total production value. 

Family-owned farms are a vital part of American agriculture — representing tradition, independence, and resilience. But many are also navigating a generational shift.

Today, the average U.S. farmer is 58.1 years old, a figure that has steadily increased in recent decades. Only 7% of farmers are under the age of 35, as fewer younger individuals choose to enter or remain in farming.

This generational turnover is creating a wave of transition, with many farmers beginning to consider selling farmland as part of their retirement planning.

The question isn’t whether these farms will change hands — but how, and to whom. 

Institutions are increasingly active in purchasing agricultural land (just like we’ve seen in the residential real estate market). But these transitions can sometimes come at the cost of local stewardship or long-term sustainability.

That’s why a values-aligned, stewardship-first investing approach matters — not only for preserving farmland’s long-term productivity, but also for creating investment opportunities that respect the legacy of American agriculture.

That’s one of the reasons why picking the right farmland investment manager is so important – and why FarmTogether stands out.

What is FarmTogether?

FarmTogether is a farmland investment manager specializing in high-quality, direct investments in US farmland.

The firm offers accredited and institutional investors access to a diverse range of curated farmland opportunities — all through a fully digital, end-to-end investment platform.

Investors can choose from a suite of investment products, including:

• Crowdfunded Farmland Offerings ($15K minimum investment), 
• Sole Ownership Bespoke Offerings ($3M minimum investment), 
• Tenancy in Common structures ($500K minimum investment), 
• Separately Managed Accounts ($20M minimum investment), 
• and their diversified, open-ended FarmTogether Sustainable Farmland Fund ($100K minimum investment). 

For investors seeking to defer capital gains, FarmTogether also facilitates 1031 exchange–eligible investments through both Sole Ownership and Tenancy in Common structures.

Thanks to these diverse options, FarmTogether acts as a one-stop shop for investors seeking farmland exposure.

What sets FarmTogether apart?

FarmTogether’s biggest differentiator is the firm’s data-driven, tech-enabled sourcing engine and rigorous underwriting process: less than 1% of reviewed deals are ultimately offered to investors.

FarmTogether offers both row and permanent crop opportunities, but specializes in high-value permanent cropland in prime West Coast growing regions — a complex market with meaningful potential upside when executed properly.

This segment demands specialized knowledge and strong operator relationships, which FarmTogether delivers through its deep in-house expertise and disciplined investment approach.

The firm partners with best-in-class farm operators and is led by a team with over $2.1 billion in collective capital deployed². 

FarmTogether’s mission is to relentlessly pursue sustainable results and deliver exceptional risk-adjusted returns, setting the standard for excellence in US farmland investment.

Landmark Mandarin Grove: FarmTogether’s Latest Deal

In this section, I’ll take a closer look at the Landmark Mandarin Grove opportunity, FarmTogether’s most recent offering, which went live just a few weeks ago and is already over 50% syndicated.

The deal exemplifies FarmTogether’s investment approach and highlights several of the firm’s key differentiators.

This deal was sourced directly from the farm’s owner, a generational farmer in California’s Central Valley, where he has farmed citrus and pistachios for over 30 years. 

What’s more, the current owner will remain involved post-close, continuing to operate the property through his farm management company – helping ensure a seamless transition.

FarmTogether is raising $6.6 million to fund the acquisition.

The investment is structured as a 10-year hold with no leverage, a target net internal rate of return (IRR) of 11.1%, a target net cash yield of 9.4%, and a target net multiple on invested capital of 2.4x.  

To explore the opportunity, I’ll first walk through the agricultural fundamentals before turning to the deal structure and projected returns.

Agriculture: Turnkey property with two popular varietals 

Landmark is a turnkey property requiring minimal development following acquisition.

The orchard features two blocks of mandarin oranges: one planted in 2013 and the other more recently in 2022.

Specifically, Landmark produces two popular varietals:

1. Tango Mandarins–notable for being naturally seedless and easy to peel.
2. Golden Nugget Mandarins–renowned for their juicy, exceptionally sweet flavor.

Currently, Landmark Grove is planted 75% to Tangos and 25% to Golden Nuggets, offering both yield stability and varietal diversification.

While not as widely recognized as varietals like Clementines or Tangerines, both Tangos and Golden Nuggets have an extensive track record of consumer popularity.

What’s more, California is the heart of U.S. mandarin production. The state accounted for 98% of domestic output in 2024, nearly all of which is consumed in the U.S. 

While questions about water access are often asked about California farms, the state is no stranger to heat, drought cycles, or climate variability — and its agricultural sector has thrived under these conditions for generations.

Much of this success stems from California’s unique Mediterranean climate, which supports the cultivation of many of the world’s highest-value crops, including citrus, grapes, almonds, pistachios, olives, and berries.

In fact, there are only five major Mediterranean climate zones globally – and California is the largest in the U.S.

This climate provides ideal growing conditions that enable year-round crop activity, higher per-acre yields, and reduced risk of frost — all of which are essential for permanent crops like those grown at Landmark Grove.

In fact, California consistently produces over 400 agricultural commodities and is responsible for roughly 75% of the nation’s fruits and nuts.

California continues to be a global leader in high-value, innovation-driven farming — as detailed in FarmTogether’s comprehensive white paper on the topic.

And Landmark Grove is a great example of this dominance.

The property is located in the Terra Bella Irrigation District, which has developed a reputation of consistent water deliveries, and also benefits from a newly installed on-site well capable of pumping 2,000 gallons per minute — providing two water sources for long-term operational resilience.

Financials: 11.1% target net IRR with conservative pricing

One of the key advantages of investing in a turnkey property is the ability to reference historical data from crops already grown on-site. 

When paired with FarmTogether’s conservative underwriting approach – which applies discounts to realized prices – this enables the team to develop a robust financial model for the opportunity.

Here’s how the projections break down, assuming a 10-year target hold and a $6.6 million all-in investment:

• Target IRR (Net fees): 11.1%
• Target Net Cash Yield: 9.4%
• Target Net MOIC: 2.4x
• Target Net LTV: 0% (No Leverage)

While these projections do not reflect potential tax benefits, current depreciation rules – particularly the stepped-up bonus depreciation provisions included in Trump’s ‘Big Beautiful Bill’ – are expected to enhance after-tax returns.

This is especially relevant in permanent cropland investments, where a significant portion of a farm’s value is tied to depreciable assets such as trees and irrigation infrastructure. For example, FarmTogether estimates that 46% of Landmark’s equity is depreciable.

An important note that investors should consult their tax advisors to understand how these provisions may apply to their individual circumstances.

Want to dive deeper into the financials? Express interest here, and a member of the FarmTogether team will follow up with you.

What’s more, FarmTogether is no stranger to this region. Landmark Grove is located just miles from three other FarmTogether managed properties in Terra Bella, underscoring the operating experience and local market familiarity. 

As with all investments, farmland involves risk and returns are not guaranteed.

Key offering details:

• Investor Restrictions: Accredited U.S. and international investors from most countries
• Minimum Investment: $15K
• Total Fees: ~3.9% upfront fee, 1.5% annual management fee, 1.25% performance fee
• Timeline: Anticipated close mid-September 2025

Sustainable Farmland Fund: FarmTogether’s Diversified Vehicle

While Landmark Grove presents a compelling single-asset opportunity, not all investors are looking to evaluate deals one by one. 

For those seeking built-in diversification–particularly newer entrants to the asset class–FarmTogether offers the Sustainable Farmland Fund (SFF), an evergreen vehicle with exposure to a portfolio of U.S. farmland assets.

SFF was launched privately in 2021 and made available to the public in 2022, years in which the fund gradually assembled its portfolio.

In 2023, SFF outperformed the benchmark NCREIF Farmland Index by 5% on a gross basis, followed by an additional 3% gross outperformance in 2024.

Today, the fund holds five properties across California, Colorado, Oklahoma, and Oregon, with plans to expand into at least three additional states in the coming years.  

While SFF does have exposure to citrus crops, the fund’s target allocation is more heavily weighted toward tree nuts like pistachios and pecans. 

Through SFF, FarmTogether targets an 8-10% net IRR  and a 4-6% annual net distribution to investors.

Unlike Mandarin Grove, the fund does employ moderate leverage to enhance potential returns, with a target loan-to-ratio (LTV) of 20-30% target and a maximum cap of 50%.

While SFF’s evergreen structure offers more flexibility than individual deals, it includes a 2-year initial lockup period.

After the two-year lockup, investors are eligible to redeem their investment in the Fund on a quarterly basis subject to available cash. 

Key offering details:

• Investor Restrictions: Accredited US investors only
• Minimum Investment: $100K
• Subscriptions: Continuous with Quarter-end Capital Calls
• Fees: 1.25% annual management fee, 15% performance fee above a 6% hurdle, Acquisition fees on a pro-rata basis

For institutional investors, FarmTogether also features Class I shares with a $5 million minimum and reduced fee structure.

Closing Thoughts: Farmland is Becoming Accessible

Farmland has long flown under the radar—not because it lacked appeal, but because investors lacked access.

Unlike stocks or bonds, farmland hasn’t had public exchanges or widely available investment vehicles. Until recently, investing in farmland meant buying an entire property outright or going through opaque, relationship-driven channels.

As new platforms and structures emerge, that’s changing. The result: farmland is shifting from a niche asset class to one that’s increasingly accessible—and increasingly relevant.

See you next time,
Brian

Learn more and invest:

• Express Interest Here
• See FarmTogether’s Live Offerings

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Investments are open to accredited investors only.

This communication is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation, or needs of any investor. All investors should consider such factors and risks in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. Historical data is not indicative of future results and may not reflect fees which may reduce actual returns. Any historical information is illustrative in nature and may not represent future results, therefore any investor investing through the FarmTogether platform may experience different returns from examples and projections provided herein.

FarmTogether does not provide tax advice or guidance. Any information provided within this document is for reference only. We recommend consulting a tax professional for your individual tax situation.

1.  AUM (Assets Under Management): Total Project Size of deals closed that are under the management and discretion of FarmTogether Management L.L.C., plus assets managed through a sub-advisory agreement with a 3rd party investment manager (< 10% of total AUM). Total project size is the aggregate total secured debt and equity funded for a Project. ↩︎
2. Sources: Privately Held U.S. Farmland – NCREIF Farmland Index; Privately Held U.S. Commercial Real Estate – NCREIF Real Estate Index; Stocks – S&P 500 Total Return Index; Bonds – Bloomberg Barclays U.S. Aggregate Index; Gold – LBMA Precious Metal Prices. Indexes are unmanaged and not available for direct investment.
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3. Sources: NCREIF Farmland Index and the Consumer Price Index – Urban. The inception date of the NCREIF Farmland Index is Q4 1990. The CPI-U produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services since 1913. NCREIF Farmland Index returns are used for the time frame above to demonstrate income and capital appreciation components, which are not available from the TIAA-CREF Center for Farmland Research database.
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