Frequently Asked
Questions

Investors

I'm a land investor... how does FarmlandFinder help me?

Investors can get exclusive access to farmland offerings by applying for membership here. Our goal is to make it easy for you to access, analyze and acquire farmland that comes with an operator in place.

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How much does it cost to be a member or user of FarmlandFinder?

Financially, it’s free to be a member on FarmlandFinder. The only cost is a few minutes of your time for a quick phone call with one of our land support specialists to make sure our platform is right for you and vice versa.

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If it’s free, how do you make money?

We keep the lights on by charging a service fee to the investor. The fee is paid at closing when the investor purchases a farm they were connected to through our platform. We are very transparent about this and even include the fee in our deal analysis on each offering page. We do this to make sure that the investor has a true picture of the return profile of the farmland investment.

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What is a sale-leaseback?

A sale-leaseback is when an investor acquires land from a farm owner-operator and then leases it back to them on a long-term basis. This can provide value to farmers when they want to keep farming the land, but would like to free up some money. A sale-leaseback provides liquidity to the farmer while helping them maintain on-going operational control of the land. By pairing an owner-operator with a qualified investor through the FarmlandFinder platform, a sale-leaseback can be done in a few simple steps. Curious to learn more? Click here.

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What are the benefits of investing in a sale-leaseback?

Sale-leasebacks take a lot of guesswork out of investing in farmland real estate. As an investor you’ll be “partnering” with the farmer who knows the land. Has records of productivity and a vested interest in the success of the farmland.

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How long do sale leaseback terms usually last?

The term of the lease refers to the number of years a farmer is agreeing to farm the land and is usually expressed in years or seasons. Many states have laws around how long a farm lease should or could be and when it is “legal” to terminate the lease with the farmer. Our data is showing an average lease term right now of around three-five years.

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How will I own the farmland?

You’ll have fee simple title, which means you'll own the land in its entirety. The sale-leaseback is a simultaneous transaction whereby the investor will be deeded title to the land. The process is a very traditional real estate transaction with a lease to the farmer being included.

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What do farmland returns look like?

Returns vary state by state with row crop land bringing 3.2% cap rates more or less. If the land or productivity is lower the cap rate will be higher. Conversely if the land is high quality you’ll see lower cap rates.

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Are these investments considered active or passive income?

Is it possible to have both? Farmland leases are typically paid at the beginning of the season. As the owner, if a couple of calls with your farmer a year is “active management” then it is active. Some of our investors have experience with hospitality or multi-family investments where they meet with managers or tenants monthly so a few calls a year seems more on the “passive” side.

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What are the benefits of investing in farmland?

Farmland is traditionally one of the most stable real assets an investor can purchase. The long term appreciation and inflation hedge characteristics are attractive to savvy investors looking for low volatility and a long term hold.

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How do I vet the farmer before making an offer to make sure they are the right fit?

The right farmer has a combination of several criteria: 1) their motivation needs to align with the investors/FarmlandFinder to determine a value; 2) If a farmer just wants to sell their land for the highest possible price FarmlandFinder won’t be a good fit and data shows us that investors who need a return on investment won’t have much interest; 3) capability is last. Understanding the farmer’s capabilities is the last piece in having confidence in the lease.

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How does FarmlandFinder ensure the farmer is a reliable fit?

FarmlandFinder evaluates the qualities of the field as an investment. This includes working with a third-party appraiser. This ensures that between FarmlandFinder’s data and the Appraiser’s valuation the investor has a solid foundation. As an investor, just like in other real assets, you’ll want to understand who your tenant is. FarmlandFinder is glad to make the introduction and help with learning about the farmer’s operation.

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How do you get farmers to your site?

They find us. Once they do we make sure we’re a fit by aligning motivations and desired outcomes. For us that means reasonable expectations of rent, land value, and terms. If the farmer’s goal is the highest possible price we’re typically not the right fit and a sale-leaseback may not be the proper solution for them.

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Why would a farmer do a sale-leaseback?

There are three typical scenarios where a sale-leaseback might provide value to a farmer; for financial reasons, estate planning or as a farm expansion strategy. If you'd like to learn more, you can read more here or download our white paper here.

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Why would farmers/sellers use you as opposed to another listing site? What makes you better?

Focus. We are absolutely focused on helping farmers get connected to investors who appreciate the benefits of the sale-leaseback structure. We also bring with us technology, data (lots of it), and resources to help the investor and farmer transact. That way both parties can have confidence in the process and outcome.

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Can I communicate with the farmer/investor before an offer is made?

Absolutely and we encourage it. Click “take the next step” on the offering page and request an introduction to the farmer. One of our team members will help coordinate from there.

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Farmers

Can you help me find an investor?

That's what we do! Our private network works to give you broad exposure to investors from across the nation; not just in your neck of the woods. This ensures we find the best partnership for you and your operation.

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How do I apply for a farm sale-leaseback?

We have a simple and proven application process that makes it easy for a farmer to do a sale-leaseback. Get started by sharing some basic information about yourself, your property and what your specific goals are. It's free to apply & there is no obligation. To see if you qualify, simply click here.

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What does it cost to apply for a farm sale-leaseback?

Absolutely nothing. As a farmer, it is free for you to apply and if you choose to proceed, it costs you nothing. Sound too good to be true? We don't charge farmers. Investor partners pay a platform fee when they agree to do a sale-leaseback, which is how we are able to offer this service at no-charge to farmers.

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.

Why would a farmer do a sale-leaseback?

There are three typical scenarios where a sale-leaseback might provide value to a farmer; for financial reasons, estate planning, or as a farm expansion strategy. If you'd like to learn more, you can read more here or download our white paper here.

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.

Learn More About Farmland Investing

Why farmland?
Investing 101 👏
Farmland leases
Land values 💎
Sale-leasebacks
How farm financing works
Case studies
Farmland news! 💥

Still have questions? Feel free to send us an email & we'll respond as quickly as possible... we're here to help!

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