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How to Buy Farmland Partners Stock | Invest in REIT

How to Buy Farmland Partners Stock | Invest in REIT
Diana Paluteder

Summary: Farmland Partners, a leading farm real estate investment trust (REIT), presents investors with an opportunity to invest in the farmland market, recognized for its steady growth, reliable income, and inflation protection. So, if you’re looking to buy Farmland Partners stock, we recommend the trusted online trading platform Interactive Brokers (IBKR).

Best Platform for Worldwide Stock Trading & Investing

  • Highly trusted multi-asset broker with clients in over 200 countries

  • Trade on 150 markets globally from a single platform (stocks, ETFs, futures, currencies, crypto & more)

  • Low commissions starting at $0 with no platform fees or account minimums

  • Easily fund your account and trade assets in 26 currencies

  • IBKR pays up to 4.58% interest on cash balances of $10k or more

Up to 4.58% interest on balance*

About Farmland Partners

Farmland Partners’ homepage. Source: farmlandpartners.com

The company shares trade on the New York Stock Exchange under the stock ticker FPI. 

How to buy Farmland Partners stock? Step-by-step

Step 1: Choose a broker

Begin by selecting a reputable online broker with access to Farmland Partners stock. Interactive Brokers (IBKR), for instance, features Farmland Partners in its offerings, making it a preferred option for numerous investors because of its wide range of features and services, including: 

  • Commission-free stock trading;
  • Global stock-trading on 90+ market centers;
  • Fractional share trading;
  • Earn extra income on fully paid shares;
  • Competitive rates for margin accounts;
  • Zero account minimum.

Best Platform for Worldwide Stock Trading & Investing

  • Highly trusted multi-asset broker with clients in over 200 countries

  • Trade on 150 markets globally from a single platform (stocks, ETFs, futures, currencies, crypto & more)

  • Low commissions starting at $0 with no platform fees or account minimums

  • Easily fund your account and trade assets in 26 currencies

  • IBKR pays up to 4.58% interest on cash balances of $10k or more

Up to 4.58% interest on balance*

If you’re keen on exploring the diverse landscape of REITs further, there are several subcategories to consider:

Canadian investors, on the other hand, may find our guide, How to Invest in REITs in Canada valuable, which delves deeper into the nuances of the Canadian REIT landscape.

How to choose the best online broker?

Take into account these five factors before you decide on a broker: 

  1. Fees and commissions: Evaluate the cost structure, including trading fees, account maintenance fees, and any hidden charges. The lower the fees, the more you can maximize your returns;
  2. Platform usability: Ensure the trading platform is user-friendly, responsive, and offers intuitive navigation. A good interface can significantly enhance the trading experience;
  3. Asset offerings: Check the variety of financial instruments available for trading, such as stocks, bonds, ETFs, and options. Also, ensure the broker provides access to the markets or specific securities you’re interested in;
  4. Research tools and educational resources: A top broker should offer comprehensive research tools and market analysis. Additionally, check whether it offers any educational resources to help investors make informed decisions;
  5. Security and regulation: Ensure the broker is regulated by a recognized financial authority and employs strong encryption and security measures to protect your data and funds.

Step 2: Open and fund your account

Once you’ve chosen a broker, open an account. After the necessary verifications, deposit your funds using your preferred method, whether that’s through bank transfers, credit/debit cards, or third-party systems like PayPal.

Step 3: Place your order to invest in FPI

To buy Farmland Partners stock:

  • Locate Farmland Partners using the ticker FPI;
  • Decide on the order type (e.g., limit, market); 
  • Determine your investment amount;
  • Finally, review and finalize your order.

Step 4: Monitor your investment

Utilizing your broker’s platform, consider setting up price alerts for Farmland Partners to receive timely notifications about significant stock price movements, allowing you to make informed decisions without constant manual tracking.

Farmland Partners’ stock price today

Pros and cons of buying Farmland Partners stock

Pros

Pros

  • Diversification: As a farm REIT, Farmland Partners allows investors to diversify their portfolio into the agricultural sector, which can act as a hedge against more volatile markets;
  • Stable asset class: Historically, farmland has been a stable asset, often providing steady appreciation and predictable income, even during economic downturns;
  • Inflation protection: Farmland can act as a hedge against inflation. As the costs of goods rise, the value of the commodities produced on farmland often rises as well;
  • Dividend income: As a REIT, Farmland Partners is required to distribute a significant portion of its taxable income to shareholders, offering a potential source of consistent income; 
  • Geographical diversification: With properties spread across multiple states in the U.S., Farmland Partners’ portfolio is geographically diversified, potentially reducing risks associated with regional downturns or specific crop failures.
Cons

Cons

  • Interest rate sensitivity: Like most REITs, Farmland Partners might be susceptible to interest rate fluctuations. Rising rates can increase borrowing costs and affect the company’s acquisition strategies. They can also lead to declining REIT valuations as investors turn to fixed-income investments; 
  • Farming challenges: The farming business can be unpredictable due to factors like natural disasters, volatile crop prices, equipment and labor costs, and debt. This can impact the rental income from tenants if they face financial difficulties;
  • Limited liquidity: The niche nature of farmland REITs can mean less trading volume in the stock market compared to more mainstream REIT sectors, affecting investors’ ability to sell their shares quickly;
  • Regulatory risks: Changes in agricultural policies or subsidies can impact the profitability of farming operations, which could affect the REIT’s revenues. 

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk. 

FAQs about buying Farmland Partners Stock

Where is Farmland Partners' stock listed?

Farmland Partners trades on the NYSE under FPI.

How can I buy Farmland Partners stock?

To invest in FPI, register with a broker such as IBKR, deposit funds, search for Farmland Partners via its ticker FPI, decide on your investment amount and order type, and confirm your order.

Does Farmland Partners offer dividends?

Yes, Farmland Partners consistently rewards its shareholders with dividends.

Best Platform for Worldwide Stock Trading & Investing

  • Highly trusted multi-asset broker with clients in over 200 countries

  • Trade on 150 markets globally from a single platform (stocks, ETFs, futures, currencies, crypto & more)

  • Low commissions starting at $0 with no platform fees or account minimums

  • Easily fund your account and trade assets in 26 currencies

  • IBKR pays up to 4.58% interest on cash balances of $10k or more

Up to 4.58% interest on balance*

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