Why Farmland Belongs in Today’s Investment Portfolios: Webinar Recap
With rising interest in alternative investments, RIAs and wealth advisors are exploring farmland as a stable, inflation-resistant asset class that provides strong long-term returns. In our recent webinar, Farmland LP’s leadership team broke down the key factors driving farmland’s performance and its role in modern investment strategies. If you missed the session, here’s what we covered and how to watch the full discussion or one of the chapters below (click on the timestamp to go directly to that chapter).
Watch the Full Webinar
📺 Replay the discussion and deep dive into these insights:Watch Here.
Key Takeaways from the Webinar
1. Introduction to Farmland LP (0:00) Farmland LP is one of the largest U.S. farmland managers focused on organic and regenerative agriculture, overseeing $300M in assets and 18,500 acres. Our team specializes in converting conventional farmland into high-value organic farmland, increasing both returns and sustainability.
2. Growth of Alternative Investments (03:55) As interest in alternative investments grows, RIAs are shifting portfolios beyond traditional stocks and bonds. Private real estate and farmland are emerging as key portfolio stabilizers due to their long-term resilience and inflation protection.
3. Farmland as a Resilient Asset Class (09:10) Historically, farmland has delivered 11% annualized returns over 85 years, with lower volatility than stocks and bonds. Unlike commercial real estate, farmland’s value is supported by essential demand—food production—making it a low-risk, high-reward asset.
4. Ideal Farmland Investment Criteria: Sunshine, Dirt & Water (15:58) Farmland value is determined by three core factors: Sunshine, Dirt, and Water. To ensure long-term productivity, we focus on acquiring high-quality farmland with optimal climate conditions, rich soil, and valuable water rights.
5. A Case Study in Organic Conversion: Burns Farm, CA (19:36) One of our most successful projects, Burns Farm, showcases how we convert conventional farmland into organic farmland. The transition has significantly increased gross margins from $300 per acre to over $800 per acre, demonstrating the potential for value creation.
6. Farmland LP’s $250 Million Fund III (24:20) Farmland LP’s Fund III is a $250M investment opportunity focused on acquiring and converting farmland to organic production. Microsoft’s Climate Innovation Fund has invested in Fund III, further validating the strategy and offering additional revenue streams through carbon credit sales.
7. Valuing Water and Water Rights (28:12) Water access is a critical but often overlooked aspect of farmland investing. Farmland LP prioritizes securing land with strong water rights, ensuring long-term resilience against climate and regulatory risks.
8. Investment Structure and Expectations (32:25) We provide investors with a 10-year investment horizon, targeting 12-13% net IRRs, with a mix of cash flow from operations and long-term appreciation. Our structure is designed for simplicity, offering 1099 reporting instead of K-1s.
9. Climate Risks in Economic Modeling (35:17) Our investment strategy incorporates climate modeling up to 2100, ensuring we acquire farmland in regions that will remain productive amid climate shifts. This forward-looking approach enhances long-term value.
10. Impact of Government Funding and Tariffs (37:34) While some farmland operators rely heavily on federal programs, Farmland LP’s strategy is independent of government funding. We focus on high-value crops and sustainable farming practices that thrive regardless of policy changes.
Want to Learn More?
📄 Investor Deck: Access a detailed overview of Farmland LP, our strategy, and Fund III here.
📩 Speak with Our Team: For due diligence and onboarding inquiries, contact irteam@farmlandlp.com.
📢 Coming Soon: A Major Recognition for Farmland LP Farmland LP has been named Farmland Fund Manager of the Year by a leading agricultural publication! Stay tuned for details.
Join Us in the Future of Farming
For investors looking to align their portfolios with long-term, stable growth opportunities, now is the time to explore regenerative farmland as an asset class.
To learn more about our strategy, explore investment opportunities, or discuss how Farmland LP can fit into your portfolio, schedule a meeting by emailing irteam@farmlandlp.com or visiting our investment page.
