If you’ve ever driven across the U.S., you’ve undoubtedly experienced a vast scenery of crops, farms, and herds of cows grazing on fields. You may not have thought about it, but the cattle you see on the side of the road represents a living and breathing investment in the meat supply chain.
Raising cattle takes land, natural resources, know-how, and time, but it’s an investment that is worth considering. Agridime is a company that makes investing in cattle possible for everyone, even if you’ve never ventured through a rural area. Here’s how cattle investing with Agridime works.
Quick Summary
- Buy cattle online for $2,000 per head.
- Agridime’s farmers raise and harvest the cattle.
- Agridime sells beef to grocers and distributes profits to investors.
- All investments are insured by Agridime.
Agridime Details | |
|---|---|
Product Name | Agridime |
Min Investment | $2,000 |
Monthly Fee | $0 |
Open to Non-Accredited Investors? | Yes |
Promotions | None |
What Is Agridime?
Agridime is an online investment company that specializes in cattle and other agricultural products. It uses a “live supply chain” to help farmers sell their products at set prices to grocers and through its online store.
For investors who aren’t farmers, Agridime creates a market to invest directly in cattle which is contracted to the company’s live supply chain. You’re paid after their cattle are harvested and sold.
What Does It Offer?
Agridime acts primarily as a broker between farmers and grocers. However, it offers everyday people an opportunity to invest in cattle that become part of Agridime’s supply chain.
Invest in the Live Cattle Supply Chain
Agridime allows you to buy live cattle for $2,000 per head. The cattle are contracted into Agridime’s supply chain, so Agridime takes on the responsibility to care for the animals until they’re harvested.
Once harvested, you receive a return of capital, plus an expected $300-$400 profit. The profits are based on Agridime’s current contracted rates.
Up to 20% Return
In 2021, investors averaged a 20% return on 5,000 head of cattle in Agridime’s business. Agridime reports a 20% guaranteed rate of return on contracts of 50 head of cattle or more, or a 15% return on contracts with fewer than 50 heads.
These returns are contractually guaranteed. That means you can expect to see the advertised returns as long as Agridime stays solvent.
Note: Future contracts could change the guaranteed return on the contract. Be sure to check for current rates before investing.
Investment Insured by Agridime
All cattle that investors buy through Agridime are insured by Agridime. If a cattle dies, Agridime will pay the return in the contract. The insurance protects both Agridime and investors.
Agridime Handles Raising and Selling Cattle
Agridime manages the full supply chain associated with raising and harvesting cattle. The company has contracted prices to buy cattle at certain prices and sell meat at other prices. Agridime finishes all the cattle on a farm in Kansas before it sells the meat to grocers across the nation.
Even if you don’t have any understanding of the livestock industry, you can still invest in cattle without any of the hassles of actually raising them.Principal and Returns Paid Via Wire Transfer
The investment period for the cattle is one year. Agridime repays the principal investment and the returns via a wire transfer within 10 days of the contract closing.
Are There Any Fees?
Agridime does not disclose any fees on its websites including on the terms page. The contract that details profit distribution is only issued after an investor buys cattle through the website.
According to Agridime, you can expect to earn $300-$400 in profits per head of cattle purchased.
How Does Agridime Compare?
Some people know agriculture and agricultural finances well. But most of us have no experience buying whole cows. The closest I’ve come to buying cattle is buying ten pounds of ground beef on sale at the supermarket.
We could not find another site that allowed investors to passively invest in cattle. Companies like AcreTrader HarvestReturns, and YieldStreet give investors exposure to the agricultural sector through funding ranches or farms. But these companies produce returns by funding agricultural projects either through debt or revenue sharing opportunities.
For opportunities on these types of crowdfunding platforms, the investment companies provide a risk profile and a range of expected returns. The outcomes of the investments aren’t insured against loss.
Keep in mind that investing through Agridime means you aren’t investing in agricultural projects. You’re buying inventory (cattle) for Agridime’s existing supply chain. Agridime’s prices for buying cattle and selling meat are fixed through contracts.
The contracts allow Agridime to forecast investment rates of return with a high degree of certainty. However, unforeseen events that negatively impact Agridime’s supply chain could cause Agridime to become insolvent, potentially resulting in the inability to pay their contracts.
Header | |  |  |
|---|---|---|---|
Rating | |||
AUM Fees | None stated on their website | 0.75% | Varies |
Min Investment | $2,000 | $5,000 | $10,000 |
Open To Non-Accredited Investors? | |||
Cell | Cell |
How Do I Open An Account?
Agridime sells its whole cattle through the company’s online store. You don’t need an account to buy. Instead, you can invest by entering your credit card information in the web portal.
According to Agridime, after making a cattle purchase, you’ll receive a contract that certifies and describes cattle contract profits. You can reach out to cattle@agridime.com to preview the contract before making the purchase.Is It Safe And Secure?
Overall, Agridime has a relatively secure platform. It uses third-party payment integrations and secure portals to encrypt contracts and store investor information.
In addition to considering information safety, think carefully about the risk profile of this investment. Agridime’s investment returns are contractually guaranteed. That means you can expect returns of 15-20%, depending on how much you invest.
The cattle are also insured which reduces the risk of the investment. The only major risk we could identify was Agridime’s solvency. If the company becomes insolvent for any reason, investors may be unable to collect their principal or their return. While the returns are “guaranteed,” the guarantee is only as good as Agridime’s ability to repay its investors.How Do I Contact Agridime?
Agridime is based out of Fort Worth, Texas.
Here's how to contact Agridime:
- Address: 3000 South Hulen St., Suite 124, Fort Worth, TX 76109.
- Call 1-888-664-6621
- Email: cattle@agridime.com
Is It Worth It?
Agridime’s business model seems amazing, and the returns on investment could be outstanding. Agridime offers a unique, agriculture investment that could offer a meaningful return in an otherwise down market. However, these returns are not truly guaranteed. The investment carries a risk of loss proportional to Agridime’s risk of insolvency. So, consider the risks before investing.
Agridime's Features
Account Types | Taxable Investing |
Minimum Investment | $2,000 |
Management Fees | $0 |
Target IRR |
|
Investor Requirements | None |
Investment Options | Investors buy cattle for Agridime's existing supply chain |
Investment Term | Unclear |
Customer Service Number | 888-664-6621 |
Customer Service Email | cattle@agridime.com |
Mobile App Availability | None |
Promotions | None |
Agridime Review: Invest In Cattle
-
Pricing and Fees
-
Customer Service
-
Diversification
-
Ease of Use
-
Products and Services
-
Liquidity
Overall
Summary
Agridime is an online investment company that makes investing in cattle possible for everyone, even if you’ve never stepped foot on a farm.
Pros
- Expected investment returns of 15 to 20% based on current contracted rates
- Livestock has a low correlation to the stock market
- Completely passive investment in livestock
Cons
- Agridime’s advertised returns depend on their ability to repay
- No tax sheltered investment accounts available
Hannah is a wife, mom, and described personal finance geek. She excels with spreadsheets (and puns)! She regularly explores in-depth financial topics and enjoys looking at the latest tools and trends with money.
Editor: Claire Tak