Farms provide food, an intrinsic need for any human being. Food is an important part of the economy. We buy it and consume it every day. Well managed assets such as farms will produce a product which is always in demand. In addition, the average age of the American farmer is 58.3 years. The trend shows that there will be less farmers in the future producing food.
Such assets tend to chug along no matter the economic weather, no matter the stock prices in the Dow or the S&P 500 value. Real assets tend to be disconnected from assets which are financialized and more liquid.
The opportunity to directly own part of an active farm and earn a dividend without getting your hands dirty is uncommon. American Farm Investors is offering investors this opportunity. Brian Luftman, Founder and CEO, explained the investment proposal he has to offer.
What is the investment proposal of American Farm Investors?
AFI offers direct farmland investment opportunities to all types of investors. AFI clients love the simplicity of direct land ownership, which helps them achieve stability and diversification in their investment portfolios. Many investors are concerned with inflation risks or fearful of a stock market downturn, and they look to real assets and commodities for stability. American Farm Investors offers a real asset investment with annual income
Can you tell us more about the management of American Farm Investors?
AFI is fully managed by a team of many experts including soil and farming operations experts.
What are the main benefits when investing with American Farm Investors?
AFI investors own their properties directly, which gives them full transparency with no investment lock-ups. AFI clients own farmland, which is a scarce resource that goes up in value nearly every year.
An investment with America’s farms provides:
- Potential for a steady stream of cash flow
- Protection against inflation
- The opportunity to benefit from land appreciation
- Ownership of a real asset
What has been the average return to AFI clients?
The average between 2012 and 2016 has been 3.14%
How does American Farm Investors sustain itself?
AFI charges a reasonable management fee for all properties in exchange for fully managing all aspects of their farmland investments.
How is each farm investment structured? What will investors own? Land, Shares of a special purpose vehicle or something else?
Most AFI investments are syndicated farmland ownership, where a farm is purchased through forming a specific LLC to own that property. All investors become members of that LLC which owns the farm.
Will there be a secondary market to trade shares in the future?
AFI clients have the ability to sell their ownership interests, but there is not a published, liquid secondary market for those investment units.
How are the farms managed?
AFI leases our farms out to reputable, local farmers, and AFI manages all aspects of the land as a “landlord.”
How are the farms audited?
All investors receive annual financial reports and tax documentation from an external licensed CPA firm.
Is this investment open only to residents in the USA?
To date, AFI has many clients all over the United States, but no foreign investment.
What is the minimum investment?
Our minimum investment varies from deal to deal, but it has never been less than $50K.
What are the initial and periodic fees that investors will be responsible for?
Aside from fees generated from purchase and sale of properties, all other property-related fees are paid from farm revenue. Typically, our investors make one farm-related transaction a year, and that is the deposit of their annual profit distribution check which is typically 2-5%.
What are the main drivers for agriculture in the future?
The world population is rapidly growing, and the amount of arable farmland decreases by over 1 million acres a year. Agricultural land that has good rainfall or water sources will continue to be a very sound investment.
Is there anything else you would like the readers of InvestItIn.com to know?
The global money supply has seen unprecedented growth over the past decade. Investors would be wise to recognise the threat that inflation could pose to their savings, and they should look at investing a portion of their portfolio in real assets.
How can potential investors learn more about American Farm Investors?
Investing in american farms, in stocks and in equities has different risks invest in your financial education to learn more before you invest in any investment product.