Gain a Stake in FarmingBETA
Stake money on farmers and the risks they manage.
What is AcreHedge?
AcreHedge is a revolutionary platform that lets anyone gain a stake in farming. Now for the first time you can actually participate in farming by backing up event contracts with real money that allow farmers and agricultural stakeholders to hedge their real-world risks, like changing commodity prices, drought, adverse weather, disease outbreaks, government policy changes, and more.
$25 minimum purchase
Funds used to purchase event contracts go into a pool from which winnings are paid out
Up to 15x+ payouts
When you're right, you get paid. The more lopsided the market, the higher the payout for contrarians.
How Prediction Markets Work
It's simpler than you think. Anyone who is interested in agriculture can gain a stake in farming in 3 steps.
Pick an event
Browse markets covering well-known farmers, and the issues that affect them. Or you can look at weather events, government policy changes, commodity prices, and more. Find one that is interesting to you.
Take a position
Think the event will happen? Buy YES. Think it won't? Buy NO. Start with a $25 minimum purchase. All funds go into a pool from which winners are paid out.
Get paid if you're right
Winners split the entire pool. If drought hits and you bought YES on drought, then you get paid. If a farmer doesn't complete their task as defined, and you bought NO, then you get paid. Simple.
Why Farmers Are Using Prediction Markets
Traditional crop insurance is slow and expensive
Prediction markets are a powerful way to hedge risks that are otherwise un-hedgeable or are too expensive to insure. No paperwork, adjusters, waiting months for payouts. If you bought an event contract and the conditions are met, then you get paid.
Prediction markets pay you directly and fast
No need to mess with insurance claims. If the event happens and you were on the right side of the contract, then you get paid within 1-3 business days.
Hedge specific risks that are too specific or expensive to insure
Use our Request Market tool to request event contracts that cover specific risks that affect you and your operation. If market demand is big enough, then you can gain a direct way to hedge that risk.
Common Questions
Is this gambling?
No. AcreHedge's event contracts are structured as not-for-profit pools (see “How is the payout calculated” below)
How is the payout calculated?
AcreHedge uses a proprietary market balancing model, the AcreHedge Balancing Model or (“ABM”) that calculates odds/pricing based on the total money that has been invested on both sides of the event contracts. All contract purchases go into a shared pool. When the event resolves, the entire pool is split among the winners proportional to how many winning contracts they hold. The fewer contracts on the winning side, the higher the payout per contract. All funds that go into the pool (less bank or card processing fees) are distributed to the winners. Neither AcreHedge, nor our partners including @farmwithzoe are collecting commissions or transaction fees from the event contract winners.
What is a Pre-Sale and Why Is it Important?
AcreHedge's Pre-Sale is used for newly opened event contracts. The process allows you to indicate how much money you would like to place on either “Yes” or “No”. It works a bit like the book-building process for an IPO where banks measure demand by asking investors to commit to purchasing shares before they start trading. At its core, the Pre-Sale is a weighing mechanism that measures the demand for “Yes” relative to “No” and uses that measurement to establish opening odds/pricing. This is a process that is less uncertain and fairer for smaller investors as they will have much better information on market pricing when a new event contract starts trading.
The AcreHedge Pre-Sale process involves commitment of real money. As an incentive, AcreHedge may offer a discount or rebate for investors who commit to a Pre-Sale. For more details, please refer to the individual event contract page and any advanced notifications we may send about new event contracts.
Pre-Sales may last anywhere from 24 hours to a few days depending on the contract. During an open Pre-Sale, an investor may cancel their order for any reason. The option to cancel, however, will expire shortly before the Pre-Sale ends, with each investor receiving advanced notice of when the Pre-Sale will be closing.
How can I Buy or Sell on AcreHedge?
After an event contract opens for trading, you can buy and sell either the “Yes” or “No” sides using Market or Limit Orders, specifying trades in either Dollar ($) amounts, or in number of contracts.
What happens if I lose?
You lose the amount you spent on contracts—nothing more. There are no margin calls, no hidden fees, and no additional obligations. Your maximum loss is always the cost of your contracts.
How do I withdraw my winnings?
Winnings are deposited to a wallet after the market settles. You can request a withdrawal at any time, and funds are sent via PayPal, Paper Check, or ACH transfer to your bank account.
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