How much of my portfolio should I invest in Agriculture?

Investors should consult a tax professional or financial adviser prior to making portfolio allocation decisions. Institutional investors such as pension funds and university endowments typically have around 10% of their portfolios in natural resources. An allocation of 5-15% of an individual’s portfolio in various types of agriculture (farmland & timberland) would not be unreasonable.

Can I invest in these offerings with my IRA?

Yes, you can invest in KrogerFarms Offerings with a self-directed IRA. Some types of transactions may be prohibited. Before you begin the investment process, please consult with your self-directed IRA custodian. You will create an "IRA" profile from your user account, and you will need the name of the entity and the Tax ID number from your IRA account to do so. Visit this page for more information.

I'm not a U.S. citizen. Can I invest in these deals?

Yes! Please consult your local legal representation and tax advisor before investing. 

How liquid are these investments?

Agriculture private placements are generally best for those with a long term investment horizon. Different offerings, however, will have different planned durations. There is a growing secondary market for private placement investments and some deals will allow the investor to sell back his interest at some point to the deal sponsor or an interested third party. Read the specific offering documents for details and consult your investment advisor as appropriate. 

Are these investments risky?

All investments have some element of risk. Agriculture is generally pretty safe. Visit this blog post for more information.

How does KrogerFarms vet deals for the platform?

Our goal is to provide a wide variety of agricultural deals with risk-adjusted returns for our investor pool. We receive many more queries from farmers who want to raise capital than we list. Our number one listing criteria is the track record of the sponsor. Do they have experience raising or growing the specific crop or have they contracted with an experienced farm manager to do so? Our sponsors undergo bad actor checks typical with private placement deals. We also analyze each deal's financial and market potential, and in the case of offshore deals, geopolitical risk factors. Whenever possible, our due diligence team will visit with the sponsor and the actual farm in person and where those visits have occurred, they will be noted in the platform's offering summary.

All that said, KrogerFarms makes no claim as to the financial viability of these deals or their ability to achieve expected pro-forma returns. Investors should consult with legal and investment professionals, thoroughly read all investing documents, and do their own due diligence before investing. 

Can I visit the farm before or after my investment?

Yes, in many cases, investors or prospective investors can visit a project with prior approval. Please email info@krogerfarms.org to see if a farm visit is possible.

I am not an accredited investor. Can I still invest in these deals?

Maybe. Most of our deals require investors to be accredited per SEC regulations. There are some deals listed under Rule 506(b) that allow a limited number of "retail" or non-accredited deals. Details on who can invest are in the offering listing and offering documents which should be read before investing.

Also see our blog on the subject. 

How do I verify my accredited status?

During the investment process, you may be required to affirm that you are an accredited investor. Different offerings may require different levels of proof, and may have different methods to provide that proof. Review instructions carefully while you go through the investment process.

Can I cancel my investment?

Yes, you can cancel your investment up to the closure of a round of funding. Once the funding round has closed, you will not be able to cancel your investment. If you've already submitted payment, you should expect a refund within 10 business days.

What if I have trouble processing my investment?

Please contact:

Phone: +1(409) 283-9274 
info@krogerfarms.org 

Can I modify my investment?

No, you cannot modify an investment after you've completed your commitment to invest. If you wish to invest a different amount or make other such modifications, you may cancel your previous investment and make a new investment.

Can the issuer or the portal cancel my investment?

Yes, as long as your funds are still in escrow, or haven't yet been received, your investment may be canceled. Once the funding round has closed, your investment cannot be canceled.

How are contracts signed?

During the investment process, you will receive specific instructions about how you are to sign any documents. Each offering may use it's own method of signing, so review instructions carefully during the investment process.

How do I pay?

During the investment process, you will receive specific instructions for that offerings method of payment. The method of payment is specific to each project, so carefully review each step of the investment process. The platform is set up to take investor funds in escrow via ACH, Wire Transfer, or check (via an offline process). On certain offerings, we will accept cryptocurrency (Bitcoin or Ethereum) with no transaction fees to investors. 

How much can I invest?

The amount of funding you can invest depends on your status as an investor, the governing regulation and limits the issuer has chosen to place. When you begin your investment, you will be shown both the maximum and minimum investment limits.

What happens if an offering doesn't reach it's funding goal?

If an offering hasn't reached it's funding goal by the end of a funding round, the project will close and your committed funds will be refunded. You should expect to receive a refund within 10 business days.

When will the offering close?

An offering closes when either the maximum amount of funding has been reached, or the end date of the funding round has been closed.

Who can invest?

Different types of offerings allow for different investors. Some types of offerings require that you be an accredited investor, while others allow everyone the opportunity to invest. Some offerings may even require that you live within a certain area to invest. Knowing what kind of investor you are will help you understand in which offerings you may invest.

Will I pay a fee for investing?

No, you are not assessed any fees for your investment during any investment round. The fees associated with running the project are paid by the issuer. The costs to validate your accreditation as a qualified investor are paid for by KrogerFarms. Other fees, to include legal entity establishment, processing financial transactions, and any broker-dealer costs are deducted from the overall raise amount and will be discussed in detail in each offering document.

Will I receive project updates after I invest?

You may receive updates from the project issuer on the status and progress of the project. You will be notified directly of these updates, and they may be viewed on the project itself under the update section.

Do I have to pay taxes on these investments?

Generally, dividends are taxed as ordinary income and appreciation at the end of a deal are taxed as capital gains. KrogerFarms will distribute K-1 or other annual tax documents provided by the deal's sponsor. Please consult your tax professional before making an investment.

Are these investments EB-5 eligible?

Maybe. The United States Citizenship and Immigration Services has an immigrant Investor Program called EB-5. Under this program, entrepreneurs (and their spouses and unmarried children under 21) are eligible to apply for a green card. KrogerFarms will highlight EB-5-eligible investments where applicable. Consult an immigration attorney before investing based on EB-5.

I've registered, why can't I see the deal I am looking for?

The US Securities and Exchange Commission requires us to restrict some offerings to certain investors. Please take a moment to go through the next step of registration by providing your address and other details and those offerings will be available for your review.

Can I invest as a legal entity, like an LLC?

Yes, you can. After you have created a user account you can have multiple "profiles" under the same account. You can chose from either Individual, Custodian, or Entity for each of your profiles. If you are wishing to invest in an offering that is only open to Accredited Investors, your entity must meet the requirements to be eligible to participate in that offering.