ETFs are another possible entry point for agriculture investors. Many investors are drawn to the diversified nature of the ETFs.
Another consideration investors must make is the expected return of ETFs. According to Investopedia the top 3 agriculture ETFs returned -9%, 12%, and -6% (YTD at the time of publication).
For more up to date returns look here.
The results look even worse so far in 2019.
Consider three types of potential passive agriculture investments.
While REITs and ETFs may offer more diversity within a single investment, it’s important for investors to think of diversity from the standpoint of their entire portfolio.
An investment in a single farm through a crowdfunding platform like FarmFundr, offers diversity within a portfolio while allowing investors to experience the upside of each years’ harvest.
The idea behind REITs and ETFs is for it to allow investors to reduce volatility. In a normal market this makes sense. With Trump’s trade war in full effect this is anything but a normal market. Ask yourself if matching the market (view return rates above) is worth the risk.
We offer a unique alternative. Invest in well vetted and researched farm operations, each with expected returns of 12-15% per year, while diversifying your portfolio.
These are investments that form a connection with the owner/operators of the farms we work with. If you’re on the fence about investing in agriculture, check out our guide on why you should invest in agriculture.
To view the details of the agriculture investments we have available you can look at our available properties here.
Please note that this blog is not investment advice. It is simply our attempt to educate investors about all of the available ways to make money investing in agriculture.
FarmFundr works with high yield operations. From vineyards and row crops to aquaculture we offer exciting new ways to invest in the people who feed the world.