[ad_1]
Investors may aim to continue operating agricultural lands, but leasing arrangements can be challenging for farmers, as short-term leases provide them with less freedom and security over the land. Leasing farmland can complicate investment, as investors are often hindered from making long-term investments in the land that’s necessary to track their farmers’ environmental and climate solutions.

AcreTrader promises to be different, as it is recognized for partnering with farmers “by preserving the land and supporting livelihoods.” This includes the language of their leases: “Our leasing agreements are crafted according to industry-leading Sustainability standards that encompass specific provisions regarding soil fertility, erosion control, groundwater conservation, and input management,” the company states on its website.

For typical buyers on the AcreTrader platform, it connects U.S. investors with farmers who want to grow their businesses, believing it’s beneficial to see capital formation helping American farmers. The company emphasizes that there is no contribution from Senator Vance in AcreTrader’s transactions or strategic direction.

Some experts caution against oversimplifying all investors within a general framework, noting that in some cases, certain forms of investment can help ease farmers’ access to land. “I think there’s an opportunity to consider how investors can use their non-destructive capital to provide access for farmers to acquire agricultural land,” said Gaby Pereyra, a farmer and co-director of the Land Network Program at the Northeast Sustainable Agriculture Working Group. This contrasts with AcreTrader’s model, which aims to help farmers purchase land, not investors, as demonstrated by Dirt Capital partnering with Dirtpartners to finance farmland.

Ownership of agricultural land can be particularly significant for Black farmers, who historically have been systematically denied land access, making it one of the most reliable forms of wealth generation. “Due to historical reasons, most Black farmers prefer ownership… because it is tied to compensation,” Pereyra stated.

However, for Latino farmers, land ownership relates to self-management and the ability to operate in the manner they desire. While some leasing arrangements can provide autonomy, they are largely dependent on the relationship with a specific landowner.

Despite AcreTrader’s emphasis on “land preservation,” the company currently restricts these leasing partnerships to “row crops, permanent crops, and trees,” leaving out diversified vegetable operations. These operations typically engage in the most innovative, climate-friendly practices. This restriction may also stem from the fact that farmers lack access to crop insurance if they fail in their farming efforts, which may deter potential investors.

[ad_2]
Source: Tarım Haberleri