May 6, 2021

By Lynda Kiernan, Global AgInvesting Media

FarmTogether, a tech-driven, online investment marketplace that enables individuals to invest in U.S. farmland, announced its partnership with Backstage Capital, an investment firm focused on backing startups founded by people of color, women, and members of the LGBTQ community. 

Through this tie-in, the Backstage Capital investor community will have access to exclusive farmland investment properties that encapsulate the shared values of diversity, inclusivity, and accessibility held by the two organizations.

This partnership comes less than two months after FarmTogether announced it had closed on the largest single-asset crowdfunding farmland investment to-date  – $22 million for Galaxy Apple Orchards, a 201-acre organic redevelopment property in Franklin County, Washington. 

Through its end-to-end platform, FarmTogether allows individual investors to view carefully vetted farmland investments, review due diligence material, make investments, and securely sign documents, all online – something that FarmTogether founder and CEO Artem Milinchuk sees as an enduring and democratizing force in ag investment.

“As we look ahead to the next five years, our mission will remain the same,” Milinchuk told GAI News in March, “to fund the future of sustainable agriculture by removing the barriers that have historically prevented investors from accessing this trillion dollar asset class.”

Over the course of 2020, FarmTogether experienced 178 percent growth in its user base for its platform, and 3,000 percent growth in investments. And this unparalleled deal reflects how interest in farmland continues to climb as investors increasingly seek out alternative assets that not only carry ESG and sustainability potential, but also present a hedge against market volatility, depressed performance from bonds, and inflation.

And now, FarmTogether is addressing the barriers that have limited access between marginalized peoples and funding.

“We were drawn to Backstage Capital because of their attention to raw talent in underrepresented and underestimated communities; in many ways, this focus largely overlaps with our investment thesis for farmland,” said David Chan, COO, FarmTogether. “As a diverse company whose leadership is majority-represented by persons of color and women, our organizations think alike, and together, we will create shared value.”

Each Backstage x FarmTogether offering will be differentiated in a way that captures these shared values. These factors may include:

~ The inclusion of people of color, women, and/or LGBTQ+ members as the offering parties
~ Properties of historical significance such as Homestead Acts lands or culturally significant properties.
~ Properties on Opportunity Zones as defined by the Tax Cuts and Jobs Act of 2017.
~ Offerings that fund scholarships to be granted to selected farmworkers and/or their children funded through a portion of the rental or operating income.
~ Enhanced access to the physical asset through greater connectivity to operating partners, processors, and/or Backstage-only farm tours. 

“Through partnerships with forward-thinking tech companies like FarmTogether, we’re creating the framework that empowers a growing community of investors to catalyze real change in underestimated markets. We’re giving more and more people a seat at the investing table,” said Arlan Hamilton, founder and managing partner, Backstage Capital. “That’s what this is all about.”

As an asset class, U.S. farmland carries a total value of $2.7 trillion. However, only 2 percent of the dollar value of all farms is financially backed or owned by funds, publicly traded companies, or high-net-worth individuals, resulting in a very fragmented and underserved market.

FarmTogether, which employs data-driven, proprietary technology to tap into this market, will work with Backstage Capital to enhance their vision of democratizing farmland by further prioritizing racial, gender, and cultural diversity, and then by leveraging these larger more representative communities to achieve greater change.

“With access to the Backstage community, we’re enabling a larger number of people to have a say in our food system, climate change, and the general wellbeing and future of humanity,” said Milinchuk.

“This partnership is key to not only fulfilling our mission to support sustainable and prosperous farming but also to radically democratize farmland investing. We’re reaching new investors to create impact through a transformational asset class. I find that incredibly exciting.”

– Lynda Kiernan is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Oilseed & Grain News. She can be reached at lkiernan@globalaginvesting.com.