Reviving the American Dream,
One Acre at a Time
At Farmland Stock Exchange, we understand the challenges farmers face in the daily operations of their business. You are running a million dollar business on razor thin margins. Securing your ground means you have to buy through a bank with a 35% down payment, or have a fund own the whole farm. Usually selling it to another investor, a different farmer, or back to you, at a hefty mark up.
We’re here to offer a better solution.
Investing in Farmers, Investing in Rural America
Farmland Stock Exchange is designed for farmers and landowners to create a win-win partnership. We help the landowner take some cash off the table, diversify their investment risk, but retain a portion of the farm.
We help the landowner keep 49% of the farm, while your preferred farmer can buy 51% of the farm. You no longer have to worry about negotiating cash rent, paying property taxes, or out of the blue investments in farm infrastructure.
It’s a win-win that lets you partner with the best farmer for your farm while ensuring you both have a fair deal. Everyone makes money, and your legacy is secured.
Your Farm, Your Legacy
We know that your farm is more than just an asset—it’s your legacy, and your future. Our goal is to provide you with the financial flexibility to keep your farmland, partner with the best farmer, and stabilize your cash flow, all while keeping the land that helped build your family. Here’s how Farmland Stock Exchange’s Legacy LLC works.
Meet with Farmer and Landlord
We meet with both the landowner and the farmer of every parcel. We want to make sure it is truly a win-win on both sides. We bring an unofficial market analysis to the conversation so that everyone is working off the same information.
Decide on ownership structure
We understand that this is one of the biggest assets you own. It is also a decision that is highly emotional, and we want to walk with you through the process. We help walk you through the numbers and see if you would rather retain 49% of your farm, or sell the entire thing.
Set up Legacy LLC
This is where the magic happens. We set up an LLC that protects both you as the landowner, and your farmer as the farm operator. We handle all of the details and ensure that you get your cash distribution on time. You take your distribution and spend it how you need, while continuing to get a cash payment once a year. For life.
How does Farmland Stocks Help Farmers?
“We have several older landlords and I have spent many sleepless nights trying to figure out how to keep it all together.”
Jon - 5th Generation Iowa Farmer
Farmland Investment 101
When you inherit a farm it does not come with an instruction manual. This is an asset class that is so far away from stock and bond investing that it seems like it is just easier to sell the whole thing. Why take a $30,000 yearly check when you could take a $1,500,000 one time payment? This is why.
Low Risk
Farmland as an investment has very low risk. In finance speak this is called the Sharpe Ratio. The basic idea here is a high Sharpe Ratio (over 1) means you have more steady returns and less risk. A low Sharpe Ratio (under 1) means you have large swings in returns and more risk. The farmland we invest in has a Sharpe Ratio of 1.3 and the total stock market has a ratio of .4
High Appreciation
Everyone talks about the quote commonly attributed to Mark Twain, “Buy land, they’re not making it anymore” but it is actually worse than that. We lose about one acre every 15 seconds. That means we all have to work together to secure land, and it also means land prices continue to rise. When you factor in population growth, owning an asset like farmground starts to make even more sense.
Low Correlation to Stocks
In modern portfolio theory you are told to diversify. The problem is that it is not easy to diversify. The S&P 500 returns are almost completely driven by a select few stocks. Bonds do not always do what we expect when stocks drop. Crypto tracks the stock market closely. Farmland has almost no Stock Market correlation, which makes it a great asset to diversify into.
Legacy
Owning land is emotional. We built America through land ownership, and that is what drew some of the most talented people from around the world to move here and become citizens. Owning farmland helps keep your family’s legacy for the next generation. You may want to take some cash off the table, but we can help you do that while ensuring your children and grandchildren can do the same.
Secure Your Acres
If you’re a farmer who has a landlord that wants to sell, help us help you by putting us in contact with your landlord. Let them know we are another option on top of going to a broker.
Contact Us: Reach out to our team to discuss your farm, your goals, and how Farmland Stock Exchange can help you raise the capital you need.
Explore Your Options: We’ll work with you to determine the best path forward. We will need you to be open to introducing us to your landlord.
Sit Down Together: Once we’ve established your goals, the landowners needs, and how we may be able to help you both we will set up a meeting with all of you. We prefer in person, but can also do a virtual meeting.
Set Up Legacy LLC: When we all agree to move forward with the Legacy LLC we will start to get all of the paperwork together and set a close date with your banker.