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Fquare: Crowd sourcing farmland?

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  • Fquare: Crowd sourcing farmland?

    Novel idea... (audio at site) No properties up yet.

    The new company Fquareis bringing crowd-sourcing to the increasingly lucrative market of investing in farmland.

    Here’s how it works: On the Fquare website, an investor can purchase a share of a farmer’s land. If enough investors pool their money to buy the whole parcel, they become the new landowners and the farmer becomes the tenant on the land. The farmer gets a three-, five- or seven-year lease to work the land, and the landowners make up to 6 percent annual interest for the length of the lease. When the lease is up, Fquare sells that same farm to a new group of investors.

    This month, Fquare hopes to fund its first farm. In a busy New York restaurant around the corner from where the company is based, I chatted with the company’s founder, Charles Polanco. He said buying farmland through Fquare was easy, akin to purchasing a share of a mom-and-pop pizza parlor.


    Last edited by doom&gloom; 07-20-13, 03:35 PM.

  • #2
    Re: Fquare: Crowd sourcing farmland?

    Quite interesting, and a potentially worthwhile opportunity for small to medium investors to diversify their investment portfolios.

    Also a chance for those who already passively invest in farmland to put their eggs in more than one basket.

    At first pass it's good to see the scheme isn't just the outfit buying up farms and selling share slices of it for significant mark-up/profit on the front-end.


    • #3
      Re: Fquare: Crowd sourcing farmland?

      So I talked to their CEO today a bit about their company. They have a land offering up right now, and they are trying to get investor commitment to buy at auction a parcel, with the goal of roughly 3% cash lease returns. Okay, thats not so bad for cash returns, but in 'custom farming', which in the US is a particular no-brainer, you should easily be able to more than double that return. And I do much better in Uruguay, which I also discussed with him.


      • #4
        Re: Fquare: Crowd sourcing farmland?

        It isn't clear how Fquare operates - is the ownership equity? If so, that isn't legal yet.

        If it is debt, on the other hand, it is legal but basically amounts to an alternative form of bank loan financing.