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Farmland Produces A New Crop Of Investment Opportunities

Farmland Produces A New Crop Of Investment Opportunities

Beth Mattson-Teig | Published: May 9, 2023

Investors are finding a variety of entry points into farmland investments, including publicly listed REITs, such as Gladstone Land Corp. (LAND) and Farmland Partners Inc. (FPI), as private equity funds and offerings. RAD Diversified is a non-traded REIT that dipped a toe into the farmland arena in 2020 with the purchase of its first farm for $8 million. "More people ask us about farmland than any other investment that we do," says Dutch Mendenhall, founder and CEO of RAD Diversified. The company has Reg A and Reg D offerings that are open to accredited and non-accredited investors with minimum investments of $1,000. Investors like farmland for a variety of reasons, including the fact that there is a scarcity component, he says. "What I like about land is that it is not just land that you buy and sit on, which is the case with a lot of land investments. It's an income tool," he adds. RAD Diversified is both a buyer and hands-on operator of the farms it acquires. RAD Diversified has realized value by making improvements to farms that allow it to produce a more optimum yield, as well as investing in things like technology that can improve efficiency. "I think self-managing the farms has been a really valuable tool for us," he says. RAD Diversified now owns farms in Idaho, Arkansas and Tennessee and expects to launch a non-traded REIT specializing in farmland later this summer.