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To dive in a little bit deeper (then I’m going to hand it over to Michael), there are two types of offerings you will find on our platform.
Row crops here on the left typically received most of their total returns from appreciation, so increases in the land value.They would receive some of the returns from cash as well from the farmer paying rent. They tend to have more stable cash returns over time.
Permanent crops, on the other hand, on the right hand side here, like apples and nuts, and other types of crops that grow on long standing trees and vines—they have typically received more of their returns from the cash output every year, and less so for appreciation. So the cash returns here fluctuate more with the market due to direct operating exposure. You can find this chart and a full blog post on this, and then a deep dive on this in our Learning Center on our website.
This video is a segment of a longer introductory webinar covering farmland as an investment, how AcreTrader works, and common questions asked by new investors. You can view the webinar in its entirety, or go to the next video in the series.
Note: The information above is not intended as investment advice. Past performance is no guarantee of future results. For additional risk disclosures regarding farmland investing and the risks of investing on AcreTrader, please see individual farm offering pages as well as our terms and conditions.