FarmTogether Integrates Parallel Passport to Increase Access to Farmland Investments
Nicholas Goss | January 6, 2020
Farmland represents an extremely attractive investment opportunity, both in the United States and globally, due to its low correlation to other asset classes, stable returns, cash yields, potential for price appreciation and its inflation- and recession-resistant characteristics. Unfortunately, these investments have historically been held within the exclusive purview of select institutional investors and family-owned businesses. Limitations on broader investor involvement have directly contributed to farmland remaining undervalued as an asset class and generating a gap in capital available to farmers more generally. FarmTogether’s mission is to change this entire dynamic.
The FarmTogether team collectively has over 70 years of experience across farmland investing, agriculture and real estate investments in the US and globally. Its CEO and Founder, Artem Milinchuk, a Wharton graduate and former CFO/VP of Operations at Full Harvest Technologies, set out to build a financial product that every investor could use and be a real owner in. The end result is FarmTogether and its truly innovative approach to providing investors with greater access to farmland deals than ever before. For the first time, individual investors and smaller institutions have the ability to browse and compare farmland investments, review due diligence materials and sign legal documents in a secure, online environment. FarmTogether principals co-invest in every offering on the platform to ensure that investors’ and the platform operators’ incentives remain aligned.
The typical investment on FarmTogether is structured as a special purpose entity that purchases farmland directly. That farmland is leased back to the farmers, which creates an asset that generates real cash yields immediately while maintaining the opportunity for value appreciation. The final piece is onboarding investors in a secure and user-friendly manner, which is where Parallel Markets comes in.
Parallel Markets and its Parallel Passport product enables investors to securely assert identity and accreditation status to each of Parallel Markets’ partner sites. With a single click, investors can authorize Parallel Markets to pass profile level information and accreditation status (confirmed by an SEC-registered broker dealer) over to the platforms. Using the OAuth2 protocol, this identity assertion is truly portable, meaning a single identity assertion can be used across multiple platforms. This dramatically reduces the amount of time between deal identification and actual investment. Accredit once, use everywhere.
“We couldn’t be more excited that FarmTogether is integrating the Parallel Passport. FarmTogether represents everything we love about the potential these online platforms have to truly democratize access to private investments in a socially conscious way,” says Parallel Markets’ CEO Tony Peccatiello. “Not only are they are introducing new sources of capital to farmers while bringing new investment opportunities to everyday investors, they’re also part of an initiative to remove 1 trillion tons of carbon dioxide from the atmosphere. We couldn’t ask for a better partner.”
Learn more about FarmTogether’s inception and mission on the Parallel Insights Podcast.
Parallel Insights Podcast: Artem Milinchuk, Chief Economist and Founder of FarmTogether, discusses the unique opportunities represented by farmland investing. Hosted by Parallel Co-Founder and CEO Tony Peccatiello.
FarmTogether is an online marketplace for farmland investing. FarmTogether provides investors access to institutional quality US farmland investments. Through the FarmTogether platform, investors have a single platform to browse investments, review due diligence materials, and sign legal documents, all securely online. You can sign up for FarmTogether here.
About Parallel Markets
Parallel Markets is a software company developing the tools to bring liquidity to private investments. Leveraging decades of private market experience, Parallel Markets is building technology from the perspective of actual issuers, employees and investors for use by actual issuers, employees and investors. Securely and accurately asserting identity online is a core piece of the private market’s infrastructure, and Parallel Markets believes this will be critically important in developing a future with minimal friction between investor and investment. The Parallel Passport is the tool Parallel Markets developed to provide a universal and portable identity solution for investors online. Follow us on Twitter, Facebook, LinkedIn.