When you think about farming the word “passive” rarely comes to mind. Let alone passive income.
For farm managers and those in the field there’s nothing passive about the income they earn. Many farms may be able to earn from cell towers, mineral rights or hunting/tourism, but that’s not an option (or desirable) for most farms. The reality is most farmers actively manage their operations to earn a living.
What does this mean for investors?
Traditionally they were your only option. With the introduction of Crowdfunding and FarmFundr, investors can benefit from the cash flow of a passive investment without direct exposure to the wider stock market.
Farmland has averaged an annual return of 12% since the great depression.
That’s a neat round number but it becomes all the more real when you’re experiencing the bounties of a bumper crop.
What does this mean for farmers?
Think of that farmer who is actively managing his or her operation.
A cash investment from FarmFundr isn’t technically income and their work is never passive.
Yet the investment provided by FarmFundr allows farmers to worry less and invest their time and energy back into their operation.
The income you receive from an investment in a FarmFundr property may be passive but the impact that investment has on our partner farms is highly active.