The Farmland Investing Model with David Chan

Passive Wealth Strategy Show - Real Estate for Busy Pros

Do you know how the fusion of technology, modern agriculture, and sustainability can revolutionize our investment in farmland?

David Chan from FarmTogether unveils a groundbreaking agricultural investment model that promises returns and champions stewardship of our lands. Discover how they're enticing institutional investors, pioneering sustainable practices, and harnessing innovative strategies in an era where 98% of U.S. farmland remains privately held. He explains how FarmTogether is creating a sustainable investment model that focuses on being good stewards of the land while still generating profits.

Dive into this captivating episode to unearth the future of sustainable farming investments.

[00:00 - 07:07] The Innovative Agricultural Investing Model

• Introducing David to the show
• Agriculture is embedded in many different fabrics of the way we live
• Being sustainable and creating resilient soil systems decreases cost of goods sold, increasing margin and net operating

[07:08 - 15:14] Exploring the Growing Institutional Interest in Farmland Investment

• Underwrite a property against different principles like risk and value for trees, vines, etc.
• Use pheromone blockers to disrupt mating season and reduce the cost of goods sold
• Create portfolios of properties to make them more attractive to institutional investors
• There is a growing appetite for farmland among smaller institutional investors

[15:15 - 21:30] Exploring Sustainable Practices in U.S. Farmland

• Farm Together focuses on medium-sized farms (2-20 million in property value) that are often overlooked
• To hedge against commodity price variability, Farm Together employs pool marketing and works with dedicated marketing boards
• Crop insurance is available to limit the downside risk of disease, blight, and other weather-related issues
• Sustainable practices such as pheromone blocking can lead to better outcomes and reduce the need for pesticides

[21:31 - 26:50] Closing Segment

• Best investment: purchasing David's first home
• Worst investment: the crypto bandwagon
• The most important lesson learned: There's no such thing as a dumb question

Quotes:

"We are not a country that's been based or bred on industrial farming. We've forever had many small farms and very fractionalized ownership." - David Chan

"Sustainability and farmland is a pretty complex and comprehensive idea. I've seen conventional farms that are farmed in very sustainable manners, and I've seen certified organic farms that I would argue could be much more sustainable." - David Chan

Connect with David!

Website: www.FarmTogether.com

Email: [email protected]

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