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
Platform Reviews
In-depth analysis using our three-pillar evaluation framework
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.
Fractional Investing Explained: SPVs, REITs, Tokens and Democratizing Private Assets
From $540 tokenized Dubai real estate to SPV structures—understand how fractional ownership works, liquidity vs control tradeoffs, and platform comparisons.
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
Real estate is going on-chain. Discover how tokenization cuts fees, unlocks fractional ownership, and enables 24/7 global trading.
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.
Investing 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.