Investing in Mid-South Farmland

Investing in Mid-South Farmland: A Reliable Alternative Investment

At a time when many investors are looking for stability in an increasingly unpredictable market, farmland is rising as an alternative asset class offering tangible value, long-term growth, and inflation protection. But not all farmland is created equal. In this article, we explain why the Mid-South region of the United States, spanning Tennessee, Mississippi, Arkansas, Missouri, Louisiana, and Kentucky, stands out as one of the strongest opportunities in agricultural investment.

What makes farmland in the Mid-South a stable and reliable investment?

LandFund Partners believes the Mid-South provides unique strengths over other farmland regions in the United States. The region contains over $100bn of row crop farmland and presents what we view as one of the best investment opportunities in the asset class. The combination of crop diversity, resource reliability, and local expertise creates a strong foundation for LFP's farmland investment strategy.

Plentiful Ground Water Resources

The Mid-South sits atop the largest alluvial aquifer in North America, covering more than 70,000 square miles. The Mississippi River Alluvial Aquifer stretches across six states and is consistently replenished by the Mississippi, White and Arkansas Rivers. It is estimated to hold roughly 300 years of groundwater supply as a reliable resource for Mid-South farmland.

In addition to the region’s abundant groundwater resources, the SEF irrigation infrastructure significantly mitigates risks of hot and dry weather and long-term climate change, which we believe helps our farm operators rely on more consistent crop yields. In fact, 92% of the farmland in LandFund’s portfolio is irrigated, which helps insulate against drought, climate fluctuations, and inconsistent rainfall.

Regional Presence

Farmland ownership and management are regional businesses that require intimate knowledge of a farm area and its operators.

LFP has a in-house farm management team permanently residing in the region. Our farm managers conduct regular site visits with tenant farmers, work closely with farmers on planting and regenerative farming plans, source deals, continue to network for off-market land purchases, build new farmer relationships, and build up LFP’s presence in the region.

This hands-on approach is a different model compared to other farmland managers that often outsource property management responsibilities. LFP’s farm management team is essential to its operation and we believe our track record is a testament to the important contribution they make to our team.

Crop Diversity

LFP owns row crop farmland capable of growing over 10 different crop types. The Mid-South farmland conditions provides our farmer tenants greater annual planting flexibility, allowing them to respond to shifting market dynamics. Generally, the majority of our farms are planted in cotton, soybeans, rice, and corn. This crop diversity is made possible by the region's favorable soil profiles, climate conditions, and access to reliable water resources.

Relative Value

LFP has invested in the Mid-South since 2013, when Midwest farmland traded at a 140% premium. Our thesis was and continues to be that farmland values converge between the two regions over time, given the hundreds of years of groundwater, great crop diversity and large efficient tracts of farmland in the Mid-South. High quality row crop farmland in the Mid-South can be purchased for roughly half the price of high quality row crop farmland in the Midwest.

What makes Mid-South farmland particularly valuable for long-term investors?

We believe that row crop farmland in our target region provides the most attractive risk-adjusted returns in the entire farmland sector. It offers a significant price discount, more groundwater resources, and more crop diversity compared to Midwest farmland and other regions.

How does the region’s soil quality contribute to farmland productivity and returns?

The Mid-South is known for its high-quality soil types. The region contains dozens of different soil types, ranging from silty loam soils with high nutrient content that percolate water rapidly to heavier clay soils that are excellent for retaining water for rice production. The variability of soil types across the portfolio is nearly evenly distributed across silty loams and clays.

Risk & Stability of Investing in Farmland

How does investing in farmland compare to traditional stock market investments in terms of volatility and risk?

Investing in farmland offers a more stable and predictable alternative to traditional stock market investments, with significantly lower volatility and risk.

Additionally, farmland provides steady income through cash rents and long-term appreciation. As a scarce and tangible asset, it serves as a hedge against inflation and economic uncertainty, making it an attractive option for investors seeking to reduce portfolio risk while maintaining consistent growth.

Investing in Regenerative Agriculture

How does investing in farmland support responsible land stewardship?

LFP is committed to land stewardship and has achieved 100% adoption of at least one regenerative farming practice on each farm property. These practices are a suite of nature based solutions that work to heal and restore the environment over time, improve soil health, promote long-term stewardship of the land and preserve the environment. These practices further promote soil health, efficient irrigation, and crop rotation strategies to preserve farmland quality. 

LandFund Partners is committed to working together with farmers to ensure the land remains productive for future generations.

If you would like to learn more about our commitment to regenerative farming, email [email protected] for the LFP Impact Report.

Farmland Investments: The Long-Term Value

Mid-South farmland stands out as a compelling opportunity within the alternative investment space. With its rich groundwater reserves, crop diversity, and fertile soil, the region offers both consistency and scalability, making it attractive to long-term investors.

Supported by a deeply rooted regional presence and active farm management, LandFund Partners showcases how strategic farmland investment can deliver strong, risk-adjusted returns while promoting sustainability and responsible land stewardship.

To learn more about investing in farmland as an alternative asset:

Get in touch with our team: Investment Interest Form Fill

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Email: [email protected]