farmland asset class

U.S. farmland has historically outperformed other asset classes. Based on its unique characteristics and benefits, farmland is considered to be a good investment, regardless of current economic state.

Highlight 1

$3.19 trillion worth of farm real estate in the U.S. as of 20191

Highlight 2

U.S. Farmland generates over $370 billion annually in revenue from commodity cash receipts11

Highlight 3

Asset class in transition:

  • Shifting consumer preferences
  • Technology deployment
  • Ownership demographics
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Unique asset class that delivers high long-term returns, carries low long-term risk profiles, and maintains low correlation with primary economic factors

1USDA - Economic Research Service

HISTORICAL RETURNS OF THE FARMLAND ASSET CLASS

Farmland returns have been shown to be positively correlated with inflation.

Farmland provides good diversification benefits due to the low or negative correlation of returns with equities and fixed income investments.

Farmland provides returns in two forms:

Cash Yield – annual cash payments from farmers renting the land

Land Appreciation – value of asset will increase with the expected increase in land values

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Appreciated value of a $1000 investment placed in 1991 without consideration for taxes, dividends, or other distributions.

Data provided from the TIAA Center for Farmland Research, University of Illinois; and National Council of Real Estate Investment Fiduciaries, Total Farmland Returns.

U.S. FARMLAND TEN YEAR RETURNS

Farmland performance, risk and management complexity all vary in different regions. We focus on understanding these critical factors to support our clients in meeting investment objectives.

Data provided by the NCREIF Farmland Property Index, 10-year returns. *Ten year returns not available, percentages represent 2019 returns.

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farmland in the news

liquidity

For Farmers, Stimulus Bill Means Subsidies Continue to Flow

The bill allots as much as $23.5 billion in assistance to farmers, a key constituency of President Trump’s, in the middle of an election year.

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liquidity

HOW COVID-19 AFFECTS THE FARMLAND MARKET

In the 2014 book, The Death of Money, author James Rickards writes there are five assets people invest in over time to preserve their wealth.

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liquidity

Land Report 100er Brad Kelley Lists 420,000 Acres in Trans-Pecos with King Land & Water

Pieced together over a span of decades, this massive single block of ranchland, which spans 57 miles from east to west, is an assemblage of 22 historic ranches, many of which date back...

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liquidity

Agriculture: Rising liquidity

A fresh wave of global capital is poised to flood the market in search of agricultural assets. Several large fund managers, including Macquarie Infrastructure and Real Assets (MIRA)...

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