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Walnuts as an Investment
Farmland is a profitable option for real estate investors
An Underrepresented Real Estate Class
Almost all investors own some amount of real estate, even if it is just the family home. Investors who do venture into real estate rarely stray far from residential or commercial properties in their own local markets, leaving an entire class of properties – rural farmland – up for grabs by large institutional funds or owner-operators. Statistics show that investors rarely make a conscious decision to buy farmland. But why is this the case?
Only 1% Of The Population Owns Farmland
And among owners, only half actually bought their farmland from an unrelated third party, the rest having inherited or purchased from a relative.
Farming: Capital Intensive & Specialized
The Traditional Way To Own Farmland
Modern farming is extremely capital intensive and requires specialized knowledge. Until now, an individual investor looking to put a portion of his investment portfolio into rural farmland would have just two alternatives:
1. Become an owner-operator.
This is extremely impractical, requiring an investor to dedicate his or her full time energies to farming. It is also far from efficient, since a new owner does not have the specialized knowledge that is required.
2. Lease the land to a third-party operator.
This is the route chosen by most passive landowners, but it is the least profitable option. On average landowners receive rents worth just 6% of the value of their land, with the bulk of the earnings going to the third-party operator.
Our New Third Option For Investors
Chandler Orchards’ system offers a new third alternative for investors looking to take a position in farmland:
3. Own the land operate it by way of our management company.
Investors can now earn the returns of an owner-operator without the need to dedicate themselves full-time. For the first time, investors can now acquire fractions of land within a large commercial orchard and entrust the management to an experienced operator.
This option is made possible due to a large number of investors purchasing land in a single contiguous 5000 acre (2000 ha.) orchard, all sharing operational costs to achieve economies of scale that smaller operations cannot hope to match.
Even investors looking to acquire larger tracts of land will achieve far superior returns by working with Chandler Orchards than going it alone. Our orchard is professionally run by an experienced team of agricultural engineers, plant pathologists, agronomists, and managers.
New Orchard Plots
Our planting campaign is underway as we prepare a hundred new 1-acre plots (fifty 1-hectare plots) for planting. See our available plots.
Our turnkey planting service leaves nothing to chance. We fully guarantee our work and will replace at our cost any trees that do not perform for any reason whatsoever during the first critical season. See everything that’s covered.
Orchard Resales
Occasionally a few older orchard plots are available from existing investors who need to sell their investment. It is important to highlight that these plots are much more mature. The investor is not buying a plot with saplings. The trees are already producing at harvest and, depending on the plot being sold, the harvest may already be at the breakeven point or with a small profit.
See our list of resales available for purchase.
See our list of resales available for purchase.