The Future of Farmland Investing: A Perspective from LandFund Partners

At LandFund Partners, we believe farmland continues to emerge as a foundational component in long-term investment planning. Unlike assets that rely on short-term momentum or speculative cycles, farmland is anchored in essential, real-world demand. The supply of farmland, particularly farmland with ample water for irrigation, is extremely limited while demand for food, fuel and fiber continues to grow over time. As global food systems evolve and sustainability becomes a core consideration, farmland presents characteristics that align with investors seeking consistency, diversification, and real asset exposure.

One of farmland’s most compelling attributes is its role in strengthening portfolio resilience. As a tangible asset with historically low correlation to public equities, farmland has served as a stabilizing force in periods of market volatility. This is particularly evident when examining historical data: during major downturns such as the Dotcom Bust and the Great Financial Crisis, U.S. row crop farmland not only held its value but often appreciated, in stark contrast to the sharp declines seen in equity markets. It can generate income through lease structures or crop production, while land values have historically demonstrated steady appreciation over extended periods. In environments marked by inflationary pressure, the agricultural sector has shown an ability to preserve purchasing power, a dynamic that continues to draw interest from those focused on capital preservation.

Farmland investments can also reflect broader values. Many of our farming practices emphasize soil health, water conservation, and biodiversity—principles that align with the goals of regenerative agriculture and responsible land management. As of 2024, LandFund Partners had achieved a 100% adoption rate of at least one regenerative practices across every farm in the portfolio, underscoring our long-term commitment to sustainable agriculture. For those who prioritize sustainability, farmland offers a distinctive opportunity to integrate environmental stewardship with long-term investment objectives—effectively aligning financial performance with ecological responsibility.

Adoption Rate of Regenerative Practices on SEF Farms

Farmland investing requires discipline and diligence. Not all tracts offer the same potential. Soil quality, water access, historical performance, and local infrastructure all play a critical role in evaluating opportunities. At LandFund, our in-house farm management team works closely with local operators to implement best-in-class practices. From crop selection to conservation techniques, our managers support our farm tenants to enhance productivity, reduce input costs, and safeguard long-term asset value.

We continue to see opportunity in the Mid-South region, where a combination of fertile soil, established infrastructure, and access to dependable water sources—including the Mississippi River Valley’s Alluvial Aquifer—support productive and resilient farming systems. These natural advantages, paired with operational discipline, are central to our investment approach.