Frequently Asked Questions
For how long would I need to invest?
Farmland Value Ventures Fund I will have a lifetime of five years, after which, investors may vote to extend the term of the LLC or exit.
Can I transfer my interest in the fund before the end of the fund's lifetime?
By nature, farmland investments are relatively illiquid. In the case of the death of a fund member or other extenuating circumstances, interest in the fund may be transferred. If the heirs or creditors wish to liquidate, they would have the opportunity to offer their interest in the fund for sale to the other existing members.
How is this investment taxed?
As an LLC, Farmland Value Ventures is a pass-through entity and will issue a K-1 to each shareholder. It is anticipated that there will be a taxable income generated by the fund each year.
What is the potential upside on this investment?
Farmland is rented out on a per-acre basis to farmers and ranchers. This will be the primary source of income during the lifetime of the fund. Additionally, farmland has been appreciating consistently and it is anticipated that the property acquired by the fund will be sold for a gain at the end of the fund's life. This gain will be passed on to the LLC members upon the dissolution of the fund.
When will I receive a return on my investment?
Income received from the assets of the fund will be distributed once annually. Additionally, when the assets held by the fund are liquidated at the end of the fund's life, investors will receive their initial investment plus any appreciation of the fund over its lifetime.
Why invest in this fund instead of buying my own farmland property?
Diversification is key in investing, and this fund will hold properties used for different agricultural production purposes across the country. Managing a portfolio like this is a very involved process, and the expertise we offer will allow us to maximize returns. Additionally, this is an asset class that is hard to achieve through other investment funds or strategies, and will offer an excellent inflation hedge as well as diversification to a traditional stock portfolio.