Fortune Senior Editor-at-Large Shawn Tully calls Farmland LP “a groundbreaker to watch” in the magazine’s Q2 2021 Quarterly Investment Guide, where he spotlights the success of our regenerative agriculture investment model.
“[American farmland] has generated low double-digit returns with near-boring consistency for eight decades, and its performance is completely uncorrelated with U.S. stocks and bonds, both of which are wildly volatile and dangerously pricey right now,” Tully writes. “Nothing is a better hedge against inflation that’s suddenly looming, since what it produces fills a big part of the basket of household staples whose prices are rising.”
Transitioning from the asset class of farmland to our firm, Farmland LP, Tully says our model “clearly works,” noting that our first fund has delivered annualized returns of around 10% with only one-third leverage. He explains:
“[Farmland LP] is following a highly individual strategy: purchasing at good prices high-quality ground that was mainly devoted to industrial production of commodity crops such as corn. Farmland LP then transitions the spreads to higher-value harvests. Today, its 40-crop menu encompasses wine grapes, blueberries, and a full array of organic vegetables and grains. That produce garners a big premium from grocery chains, vineyards, and food manufacturers whose customers increasingly prize what’s natural, healthy, and grown under strict green standards.”
Tully concludes, “In these times of careening stock prices, obsession with the glamour of Bitcoin, and spiking rates, farmland provides the kind of comfort food wary investors should be looking for.”
Fortune subscribers can read the full article here.