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Why Invest in Agricultural Farmland?

  • Agricultural farmland offers consistent returns over time. Over the last 20 years, it has outperformed stocks, bonds and other forms of real estate with lower volatility. It is a non-correlated asset.
  • The world’s population is increasing and an emerging global middle class commands more income to compete for better food. This will drive farmland values higher.
  • Farmland is disappearing due to urbanization, water scarcity and environmental factors. Farmers need to grow more food on less land.
  • California is one of five global regions in the world that has a Mediterranean climate which is ideal for growing crops. It loses 200,000 acres of farmland per year.
  • The Sustainable Groundwater Management Act (SGMA) may limit the ground water and surface water that is available to farm.