Farmers who have a good track record for profitability may have an edge when it comes to obtaining outside capital. At least that’s the theory behind Harvest Returns, a financial technology company launching its agriculture investment platform this month.

In the platform's equity partnership format, agriculture producers and landowners are able to collect capital and maintain control over their operations, while investors passively fund them and collect returns from harvests.

Harvest Returns does not have location-specific requirements, but rather focuses on the financial benefit of a specific deal and the grower's historical success.

Farmers submit their operations to Harvest Returns to be selected as a private placement on the platform. Investors are able to view the details of each opportunity on the platform and select the deal they want to invest in. Investment minimums are as low as $5,000.

Investors receive regular updates on the progress of their investments, annual distributions once crops are harvested, and have easy access to tax documents. Farmers receive their funding after the full amount of their deal is raised; most deals range between $500,000 to a few million dollars.

Historically, returns from farmland investments have outperformed stocks, bonds, golds and other asset classes.  

"By combining the benefits of agriculture with the ease of our investment platform, we are providing access to a larger pool of investors to farmland, ranchland and timberland ownership," says CEO Chris Rawley. "Plus, we are bringing them closer to the hard working farmers who grow their food."

The company currently has agreements in place to list agriculture investments in Texas, Arizona, Florida, Brazil and Belize. Increasing consumer interest to know where food originates and how it is produced is an important consideration for many investors.

"People are starting to care more and more about where their food comes from, so an investor could choose to invest in a producer in their state or region," said COO Austin Maness. "When they receive regular updates on that investment, they are not getting only a financial benefit, but also an emotional one that connects them more to their community."

For more information, visit harvestreturns.com.