DST Farms has formally launched as a sponsor of Delaware Statutory Trust (DST) investment vehicles, focused on a first-of-its-kind offering in the farmland asset class. DST Farms will enable Section 1031 exchange investors to engage in farmland investment opportunities that have the potential to deliver above-market returns and long-term capital appreciation, while simultaneously mitigating investment risk and implementing sustainable land management and farming practices. Before the launch of DST Farms, the $3 billion Section 1031 exchange market entirely lacked farmland investment opportunities.
According to DST Farms, farmland DSTs are lower risk with high upside annual returns compared to other real estate DSTs. Unlike commercial real estate and multifamily DST property offerings, farmland DSTs can take advantage of federal crop insurance, which provides a minimum annual revenue guarantee; tenant rent for the year is paid in advance; and limited capital investment is ne
