Pistachio Investment in California

November 1, 2020

FarmFundr is excited to offer a state of the art Pistachio development investment project on it's agriculture crowdfunding platform. The property where the pistachio orchard is to be developed is surrounded by producing and developed plants galore. There are thousands of acres in the area that prove that this is the optimal place to farm pistachios. The opporunity will be live on FarmFundr's farmland investment portal in September 2020.

Bird's Eye View - Pistachio Market

California currently makes up 99% of the commercial production of pistachios, offering over 312,000 acres across 22 different counties. The first commercial crop of pistachios was harvested approximately 45 years ago when 1.5 million pounds were produced on just 4,400 acres. These trees were initially introduced in the state as garden trees, and today they occupy hundreds of thousands of acres and have produced millions of pounds of pistachios sold around the globe.

Currently, the U.S. is starting to edge out competitors like Iran, who are known for selling much lower-quality pistachios but offering cheaper pricing for exports. However, by lowering the prices, the U.S. market has been able to project future growth in the nut export market and a large part of that is thanks to the huge trend in pistachio production and consumption that has swept the globe in recent years.

Thousands of new acres are being planted each year, and the industry generates as much as $1.1 billion in labor income alone. Pistachio farming is certainly here to stay, and the industry is projected to produce over 1.4 billion pounds by the year 2026. Currently, experts are predicting on years around 4,300 pounds of production per acre and off years to have 2,800 pounds per acre, on average.

Pistachio Development Details

What currently sits as a well positioned piece of farmland will be developed into an abundant pistachio orchard, offering an appealing choice to buyers who are looking to get into pistachio farming, as well as investors who want a strong asset that is going to continue to build wealth over time. The total offering is listed at $1,025,000. At a $10,000 minimum, investors will own a share of the LLC formed to own and develop the orchard. Funds raised will be used to purchase the land at $12,000 per acre and to develop the orchard by a team of expert pistachio farmers.  In 5 years,when the trees have matured and begin to produce, the orchard will be sold for a profit (estimated $35,000+ per acre). The target IRR is projected at 10.85%, and potential prospects can join the wait list until the property is ready.

Getting in on the ground floor of a new land development like this has the possibility to yield far more profit potential than if you invest in a farm that is already producing. Plus, the future potential of a property like this could offer something much more desirable to buyers who want a farm that might be a little less expensive now but has more profitability in the future.

You can learn more about the offering by creating a complimentary account or logging in here.

How Crowdfunding Works When it Comes to Farming

Some people might not have an interest in farming, but they are interested in the profit potential of pistachio production and its growing market share in the world of produce and nuts. Rather than investing in traditional exchange funds and securities, you can consider a new opportunity: crowdfunded agriculture.

Investing in farms through crowdfunding works much the same way as all other things that are crowdfunded. This is a great way for many investors to come together and generate income and profits from farmland. It's more personal and tangible because you have a physical property that you have invested in, but the actual process of crowdfunding is what sets this option apart. In FarmFundr's unique model, members of the LLC actually own the deed to the farm. They take a proportional share of the profits received on that farm's crop and benefit from appreciation when the land is sold.

Why Invest in Pistachios?

Despite being a less commonly known nut, the pistachio is taking the world by storm right now. For those looking to invest in the best regions, California has something to offer. In fact, experts are projecting the biggest crop ever in 2020 and this trend will only continue in the future. The expectation for this year is as much as 1.2 billion pounds of pistachios produced throughout the state of California alone, which means that this new development will be in good company once it reaches maximum production.

One of the biggest reasons to invest in pistachios right now is because the time is perfect. Not only are they growing in popularity and becoming some of the best produce to come out of California, but they have plenty of nutritional value, too. Pistachios have even been designated a "complete protein" by the USDA, which means that it is in the same classification as quinoa, soybeans, and chickpeas.

According to a news release from APG, pistachios include all nine amino acids that the body needs to contribute to an overall balanced body and healthy lifestyle. In addition to being popular for their taste, these nuts are now going to continue to soar in popularity for their health benefits.

The Future of the Pistachio Industry

Right now, the future and the profitability of the pistachio market, much like many markets, is hinging on the expectations and cost of exporting in a post-COVID society. Despite the strong market and impressive wholesale pricing it is typically known for, the future of this industry will see much lower pricing and that could impact the profit potential of the market.

Pistachios are here to stay, and now is the time to get in on the ground floor with a new farm investment like the one offered in Lemoore. Whether you are a buyer or an investor, you will be able to get your hands in a share of the huge profit potential that this market offers. Even as far back as 2007, the growth potential of this tree nut was starting to climb, and pricing began to drop as more competition came about.

Competition and other factors may be impacting the price of this tree nut, driving down costs, and making it a more profitable investment for everyone involved. While farms were only producing on about 114,000 acres in 2017, there are now more than 300,000 acres dedicated specifically to pistachio farming within the state. These numbers are only projected to climb in the coming years, driving up the profit potential of pistachio farming and driving down consumer costs.

The Final Call

Typically, an investment in farmland is a secure and profitable opportunity. Pistachios, at the moment, are doing quite well with a strong market outlook both nationally and globally. The returns on pistachio farming are quite high and the existing farming operations will give you a firsthand look at all of the profit potential that can be found. If you are interested in this as an investment option but don't want to but an entire farm to develop, you just might be in the right place.

The growing market for pistachios is not going to slow down anytime soon. As more land becomes available and the market creates a demand for more product, farms like this new development are going to become investment gold mines. Those who are willing to wait for the long-term returns can definitely find a potentially lucrative investment option with this pistachio farm.

Land is becoming scarce. Pistachio farms are growing up. While the industry is strong and holding, the investment potential is waning with each passing day. Pistachios and almonds are two of the most popular nuts produced and consumed, which provides ample investment opportunity for anyone.

Click here to learn more about this unique and exciting investment opportunity.