Fractional Real Assets & Farmland
Real assets for the digital age — farmland, storage, energy and infrastructure fractionalized for investors.
Overview
Fractional real assets democratize access to farmland, solar projects, battery storage, and alternative REITs through platforms like AcreTrader, FarmTogether, and Fundrise. Market size: $3T US farmland value, $50B crowdfunded real estate (2024). Investment thesis: Land appreciation (3-6% annually) plus income yields (3-8%) from crops, energy generation, or rental income. Fractional ownership lowers barriers from $500K+ farm purchases to $10K-$25K per offering. Includes sustainable AgTech (regenerative farming, precision agriculture), energy infrastructure (community solar, battery storage), and alternative REITs (single-family rentals, industrial, data centers). Returns: 8-15% annually combining appreciation and income.
Key Benefits
- Inflation hedge: Farmland and energy infrastructure appreciate with commodity prices and inflation
- Dual returns: Land/asset appreciation (3-6%) plus operating income (4-8%) from crops, energy, or rent
- Low correlation: 0.0-0.2 correlation with stocks; recession-resistant (food, energy always needed)
- Tax advantages: Depreciation on equipment/buildings, 1031 exchanges for farmland, solar tax credits
- Fractional access: Own $10K-$25K slice of $2M+ assets; democratizes institutional investments
- ESG alignment: Sustainable AgTech and renewable energy projects offer impact + returns
- Long-term appreciation: Prime farmland increased 6% annually (1992-2022); solar assets benefit from declining costs
Latest Research & Analysis
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From Farmland to Infrastructure: The Investor's Guide to Fractional Real Assets
Invest in farmland, commercial real estate, and solar projects starting at $100. Complete guide to fractional platforms, yields, and inflation hedging.
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Why Fractional Secondary Markets Fail: NAV Discounts, Thin Order Books, and the Liquidity Mirage
Discover the liquidity mirage in fractional investing—why NAV discounts persist, order books stay thin, and exits break down.
Real Estate Tokenization: How Blockchain Smart Contracts Are Eliminating Transaction Friction and Enabling 24/7 Global Trading Access
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Due Diligence Checklist: 10 Critical Questions Before Investing in Fractional Real Estate Deals
10-question checklist for vetting fractional real estate sponsors. Covers fee transparency, track records, market risks, and SEC compliance.
Special Purpose Vehicles in Fractional Ownership: Legal Structure, Bankruptcy Protection, and Investor Safeguards
Before investing fractionally, understand SPVs. Learn how legal structure, bankruptcy risk, and governance protect—or destroy—investor capital.
Top Platforms & Investment Options
AcreTrader
$10,000 per farmFarmland crowdfunding platform. 80+ farms across Midwest, South. Minimum $10K-$25K per offering. Target 8-12% total returns (appreciation + crop income). 5-10 year holds. Annual distributions. Accredited investors.
Visit PlatformFarmTogether
$10,000 per farmFarmland investing platform. 40+ farms (row crops, permanent crops). Minimum $10K-$50K. Target 8-12% IRR. Quarterly distributions. Due diligence: Soil quality, water rights, operator experience. Accredited investors.
Visit PlatformFundrise
$10 minimumReal estate crowdfunding platform. Diversified portfolios: Single-family, multifamily, industrial, retail. Minimum $10. eREITs offer quarterly liquidity. Target 8-12% returns. 500K+ investors. Not accredited-only.
Visit PlatformArrived Homes
$100 per propertyFractional single-family rental investing. Buy shares in individual rental properties. Minimum $100 per property. Rental income distributed quarterly. 5-7 year target hold with property sale. Returns: 8-12% including appreciation.
Visit PlatformRealtyMogul
$1,000 for REITsCommercial real estate crowdfunding. REITs and individual deals (multifamily, industrial, office). Minimum $1K-$5K. Target 8-15% returns. Accredited and non-accredited options. $7B+ transacted.
Visit PlatformWunder Capital (Wunder Markets)
$1,000 per projectCommunity solar fractional investing. Own shares in commercial solar installations (Amazon, Google, Walmart properties). Yields 5-8%. 20-25 year PPAs. Minimum $1K-$5K. Illiquid (hold to maturity).
Visit PlatformFarmland Partners (FPI)
1 share (~$10-15)Farmland REIT. 180+ farms, 160,000+ acres. Diversified: Row crops, vegetables, cotton. Dividend yield 3-4%. Market cap $600M. Publicly traded (liquid). Alternative to direct farmland crowdfunding.
Visit PlatformInvesting in Fractional Real Assets
Start with Farmland Platforms
AcreTrader and FarmTogether offer fractional farmland ownership. Minimums $10K-$25K per farm. Choose row crops (corn, soybeans) for lower risk or permanent crops (almonds, grapes) for higher returns. 5-10 year holds typical. Quarterly distributions from crop sales.
Explore Renewable Energy Projects
Platforms offer fractional community solar, battery storage, and agrivoltaics (solar + farming). Yields 6-9% from power purchase agreements (PPAs) with utilities. Energy projects benefit from IRA tax credits. 15-25 year contract durations provide stable cash flows.
Add Alternative REIT Exposure
Fundrise, RealtyMogul, and Arrived Homes offer diversified real estate portfolios (single-family rentals, industrial, data centers). Lower minimums ($10-$500) than direct farmland. Quarterly dividends. More liquid than farmland (some platforms offer secondary markets).
Understand Illiquidity
Fractional real assets typically require 5-10 year holds. AcreTrader farmland locks up until sale; Fundrise allows redemptions quarterly (but limited). Build 12-month cash reserves before investing. These are long-term, illiquid allocations.
Fractional Real Assets Risks
Important considerations before investing in fractional real assets & farmland
- Illiquidity: 5-10 year lockups typical; early exits require 20-30% discounts or impossible
- Commodity price volatility: Farmland income tied to crop prices (corn, soybeans swing 30-50% annually)
- Weather/climate risk: Droughts, floods, freezes destroy crops; crop insurance covers 70-85% (not 100%)
- Operator risk: Farm management quality drives yields; poor operators reduce returns 20-40%
- Energy market risk: Solar/battery projects depend on utility PPA prices; policy changes affect returns
- Platform risk: If AcreTrader, FarmTogether bankrupt, asset ownership unclear despite LLC structures
- Concentration: Single-farm investments = binary outcomes; diversify across 5-10 properties
- Regulatory changes: Farmland zoning, water restrictions, solar incentive reductions impact values
Due Diligence Checklist
- Verify soil quality: Check CSR2 rating (Corn Suitability Rating) for Midwest farmland; 85+ = premium
- Assess water rights: Irrigated land worth 2-3x dryland; confirm rights transferable
- Check operator track record: Experienced farmers achieve 10-20% higher yields; verify references
- Review lease terms: Cash rent (fixed) safer than crop share (variable); typical $200-400/acre
- Understand crop insurance: Operators should carry 75-85% revenue protection; reduces downside
- For energy: Verify PPA counterparty creditworthiness (investment-grade utilities preferred)
- Compare to benchmarks: NCREIF Farmland Index 11% annual (1992-2022); if offering <8%, insufficient return
- Diversify across 5-10 assets: Single property = concentration risk; portfolio approach averages outcomes
Real-World Examples
Iowa farmland (AcreTrader): $10K investment in corn/soybean farm (2019). 5-year hold, land appreciated 25%, crop income $3K. Total: $15.5K = 9.2% CAGR.
FarmTogether California almonds (2018-2023): $10K investment returned $15K (8.4% CAGR). Land +30%, crop income +20% over 5 years.
Fundrise eREIT (2017-2024): $10K invested grew to $18K (7.8% CAGR) including quarterly distributions. Outperformed bonds, lagged S&P 500.
NCREIF Farmland Index (1992-2022): 11.0% annual return. Outperformed bonds (5.3%), matched stocks (10.7%), lower volatility (6% vs. 18%).
Midwest crop crash (2014-2016): Corn fell $7 to $3.50/bushel; farmland values dropped 15-20%. Recovered by 2021. Illustrates commodity risk.
Advanced Guides
Explore Subcategories
Farmland Investing
Platforms like AcreTrader, FarmTogether and their mechanics.
Sustainable AgTech
Regenerative and climate-smart farming models.
Fractional Energy Projects
Solar, battery storage, agrivoltaics fractional investment.
Alternative REITs & Platforms
Arrived Homes, RealtyMogul, Fundrise, etc.