“Farmland is an inflation beating asset that has consistently delivered higher returns than equities, bonds and other forms of real estate, with less volatility.”

Michelle Ewart, Director of Capital Markets & IR

Farmland is a Compelling Asset Class

Historical Outperformance

Opportunities are Rife

Farmland is ripe with investment opportunities. This is a large, fragmented market compared to other types of commercial real estate, and only 2% is owned by institutional investors.

Favorable Long-Term Supply/Demand

Farmland is disappearing, but demand and the population keep growing. We lose 4 acres a minute of U.S. farmland from depleted soils and urban development. Over the past 20 years, we’ve lost the state of Florida in farmland!

Low Volatility

Farmland has delivered positive annual returns every year for the last 30 years and is not correlated with the broader equity market.

Inflation Protection

Low Debt

Farmland has 13% debt, compared to 60%-70% for other types of commercial real estate. This makes it less prone to forced sales and price drops during downturns.

Organic is a game-changer

“Organic food demand increases 13% annually, but the proportion of organic farmland has only grown by 6%.”

Craig Wichner, Founder

GROWTH OF ORGANIC FOOD MARKET EXCEEDS ORGANIC CROPLAND CONVERSION

UNCONVERTED FARMLAND IS PLENTIFUL…

Out of the total of 893 million acres in the U.S., only 1.2% of cropland is organic.

… AND WILL BE AVAILABLE FOR PURCHASE

Up to $1 trillion of U.S. farmland is likely to be sold within the next 10 years.

Demand for organic food eclipses supply –

leading to sizable premiums

%+

premiums for organic food

%+

premium for organic farmland rents

And the organic market is only getting bigger – far exceeding the cropland conversion rate.

The term “cropland” refers to farmland that is ready for crop planting. The term “farmland” covers additional farming activities e.g. ranching.

Why aren’t more farmers converting to organic?”

Although the incentives to convert are significant, farmers face three years of limited income during the conversion period. Farming multi-year crop rotations, maintaining soil health, managing pests naturally, and optimizing yields without relying on synthetic inputs requires a broad and integrated skill set.