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Q: What is your view on organic farming? Is it the future of farming?
A: We do believe it holds a very important place in the world of farming. For some context in the United States, less than 1% of farmland is certified as organic. So it is still a tiny, tiny market slice overall. It represents 15%, maybe even 20 of our portfolio.
So we do view it very favorably, but that's not to say that we are inclusive or exclusive only of one type or the other forming. What would our goal is is to find farms that are attractive investment candidates, and that are sustainable for the long term.
So, whether or not the actual produce coming off the farm is organic, or that farm is regenerative or not, sustainability is a core theme, and it's very important in how we underwrite a farm. We're not here to my nutrients, and scrape the next five dollars of rent out of that farmer in order to juice returns just slightly in one or two years. We really want to look at the holistic picture and the long term view in underwriting the farms.
MI: Yeah, I think that's a good point. And also, farms can be converted to organic over a three-year period, and we've had multiple offerings where it wasn't organic at the time of purchase, but it would be converted during the investment window there.
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.