According to AcreTrader, $10,000 invested in farmland in 1991 would be worth more than $215,800 today, making farmland one of the few asset classes that have outperformed S&P500 over this period of time.
AcreTrader is a smaller company than Masterworks or Fundrise. It has a long subscription process, which means that there might not be any investment offers on its site at any given time. As of this writing, the only investment available is a corn and soybean farm in Knox County, Illinois, which is expected to produce an annual return of 8.1%. However, the minimum investment is much higher at $15,700.
AcreTrader has higher barriers to entry than the other services mentioned. However, it is arguably the best option for a retail investor looking to buy farmland.
Go off the beaten track
Fine art, real estate and farmland are limited-supply real estate assets that have a medium to low correlation to the stock market and are resistant to inflation. Companies like Masterworks, Fundrise, and AcreTrader lower the barriers to entry into these asset classes, making it easier for an investor to add diversity to their portfolio.
The US stock market remains a very attractive mix of liquidity and excellent long-term returns. However, investing in categories other than stocks is a great way to limit the downside risk that a single asset class can impose on your financial well-being.