Last week, you learned why first farmland is one of Wall Street’s best-kept secrets. The “why” is clear. Now, it’s time to get tactical. How do you actually buy a piece of this multi-trillion dollar asset class without making a catastrophic mistake?
In the final episode of this special series on the 5-Minute PRIME Podcast, host Martin Maxwell delivers the definitive investor’s playbook. We move from theory to execution, breaking down the exact steps to acquire, value, and manage your first farmland investment, whether you have $10,000 or $10 million.
Tune in to learn:
- From REITs to Crowdfunding: A clear breakdown of the four primary ways to step into your first farmland deal—from buying a liquid share on the stock market to owning a piece of a specific farm.
- The Due Diligence Masterclass: The critical legal, water, and soil checks you must understand before committing capital to your first farmland purchase.
- Valuing the Dirt: A simple guide to the “Income” and “Market” approaches that professionals use to determine what your first farmland is truly worth.
- The Top 10 Costly Mistakes: A countdown of the most common and devastating errors—from overlooking water rights to using the wrong financing—that can derail your first farmland journey
Are you ready to move from theory to a tangible investment plan? Subscribe now for the essential guide to executing your first farmland deal with confidence.
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Show Notes: First Farmland
Key Takeaways
- Pathways to Ownership: Investors can choose direct ownership, farmland REITs, crowdfunding platforms like AcreTrader and FarmTogether, or agribusiness stocks/ETFs—each with unique tradeoffs in liquidity, risk, and control.
- Due Diligence Matters: A complete 360-degree audit covers legal/title checks, rights verification (especially water), environmental tests, and physical inspections to uncover risks and hidden value.
- Valuation Approaches: Professionals use the Income Approach (NOI ÷ cap rate) and the Market Approach (comparable sales). When results diverge, it may signal market overheating.
- Top Mistakes to Avoid: Short-term vision, poor financing, ignoring water rights, and treating farmland like urban real estate are among the ten costliest errors.
- Farmland as Legacy: This is a patient, long-term investment rooted in stability, food security, and generational wealth-building.
Action Step:
- Visit a farmland crowdfunding platform such as AcreTrader or FarmTogether.
- Review at least one past offering memorandum to study property size, soil quality, water rights, tenant agreements, and projected returns.
- Look at average rental yields, which typically range from 3% to 5% annually.
- Check the expected hold period, often between 5 and 10 years.
- Compare projected internal rate of return (IRR), usually in the 7% to 12% range, across multiple offerings.
Mentioned in This Episode
Episodes to Revisit:
- Episode 87: The Why of Farmland Investing — exploring farmland’s strong returns, role as an inflation hedge, and rising food demand.
Companies & Platforms:
- Gladstone Land (LAND)
- Farmland Partners (FPI)
- AcreTrader
- FarmTogether
Agribusiness Stocks/ETFs:
- Deere & Co.
- Nutrien
- ETF: MOO
Challenge for Today:
- Choose one specific farm listing from a crowdfunding platform and examine the property details.
- Identify the total purchase price, acreage, and crop type for the farm.
- Review tenant arrangements and whether the property is leased or owner-operated.
- Check soil quality ratings, water rights ownership, and irrigation infrastructure.
- Evaluate the projected annual cash yield, anticipated appreciation, and target IRR compared to other farms.
- Write down your conclusions on whether the risk profile matches the return potential.
