What's Happening?
FarmTogether has launched its first avocado investment, Riviera Avocado Grove, located in the coastal foothills of Santa Barbara County, California. This investment marks the company's expansion into the avocado sector, a rapidly growing segment of U.S.
permanent cropland. The property features a mature Hass avocado grove and is supported by a multi-source water system. The investment is structured as a 10-year hold, targeting a 10.5% net internal rate of return and a 9.3% net cash yield. The launch comes amid increasing U.S. avocado consumption and limited domestic supply.
Why It's Important?
The launch of Riviera Avocado Grove by FarmTogether is significant as it addresses the growing demand for avocados in the U.S., which has been constrained by geographic and water limitations. By investing in high-quality avocado assets in California, FarmTogether aims to capitalize on the strong consumer demand and generate long-term value. This investment also highlights the potential for farmland investments to provide stable returns, particularly in high-value crop segments. The initiative reflects a broader trend of increasing interest in sustainable and profitable agricultural investments.
What's Next?
FarmTogether plans to continue expanding its farmland investment platform, focusing on high-value permanent crops in key U.S. growing regions. The company will monitor the performance of Riviera Avocado Grove and explore additional investment opportunities in the avocado sector. As the demand for avocados continues to rise, FarmTogether's strategic investments could play a crucial role in meeting consumer needs while providing attractive returns for investors. The success of this venture may encourage further investments in similar agricultural projects.
