Farmland Historical Performance
Farmland has demonstrated strong absolute returns over the past several decades. It averaged ~10.2% total annual returns (income + price appreciation) from 1992 to 2024.
Data are based on annual total returns from January 1, 1992 through December 31, 2024.
Sources: Privately Held U.S. Farmland - NCREIF Farmland Index; Privately Held U.S. Commercial Real Estate - NCREIF Real Estate Index; Stocks - S&P 500 Total Return Index; Bonds - Bloomberg Barclays U.S. Aggregate Index; Gold - LBMA Precious Metal Prices. Indexes are unmanaged and not available for direct investment.
As of now, there are two farmland Real Estate Investment Trusts (REITs) in the United States: Gladstone Land Corporation (LAND) and Farmland Partners Inc. (FPI). These farmland investment opportunities are influenced by broader market dynamics and have exhibited historically higher volatility than direct farmland investments as represented by the NCREIF Farmland Index.
Market Indexes | NCREIF Farmland | Farmland Partners ($FPI) | Gladstone Land Corp ($LAND) |
|---|---|---|---|
Average Annual Return | 6.55% | 1.72% | 1.67% |
Volatility | 3.70% | 28.33% | 48.33% |
Sharpe Ratio | 1.320 | 0.002 | 0.000 |
Data are based on annual total returns from January 1, 2014 through December 31, 2024.
Sources: Privately Held U.S. Farmland - NCREIF Farmland Index; Publicly Traded U.S. Farmland REITs - Gladstone Land Corporation, Farmland Partners Inc. Indexes are unmanaged and unavailable for direct investment.
As the world’s population grows at an unprecedented rate while farmland acreage continues to shrink, long-term food and water security is a critical concern. To feed our rapidly growing population, farms will need to significantly increase their productivity and efficiency.
Sources: Food and Agriculture Organization of the United Nations (FAOSTAT)
The increasing scarcity of farmland and its lack of correlation with other asset classes make it an exceptionally strong diversification tool for virtually any portfolio. This has driven institutions to significantly increase their investments in farmland over the last 30 years.
Sources: NCREIF Farmland Index - Growth in Market Value and Property Count, 1992 - 2024
Additional Resources
farmland investingHarvesting Returns in a Changing Rate Cycle: Farmland’s Balance of Income and Growth
With rate cuts underway but yields still near decade highs, investors are reassessing how to balance income with long-term growth. Farmland stands out for offering both—steady lease income and enduring appreciation—across changing rate environments.
Learn More
farmland investingFarmland vs. Private Credit: Two Sources of Passive Income, One Structural Advantage
Farmland and private credit are reshaping alternative income strategies—yet offer fundamentally different profiles. This piece unpacks farmland’s inflation linkage and biological growth, private credit’s expansion, and how they can work in tandem.
Learn More
farmland investingFarmland’s Role in Portfolio Construction: Capital Preservation and Diversification
Farmland’s fundamentals—scarcity, inelastic demand, and income—are making it an increasingly relevant tool in modern portfolio construction. Once limited to institutions, it’s now accessible through a range of professionally managed vehicles.
Learn More