Investing in farm land institutional investors are allocating

Institutional investors are allocating more capital to investing in farm land, with Q1 2024 transactions up 12% from a year earlier according to NCREIF Farmland Index. Inflation-linked rent agreements are driving solid double-digit total returns. The solution isn’t sprawl. It isn’t warehouses on our prime soils or scattering single homes across open countryside. Instead, it’s about directing growth into our existing neighborhoods—investing in density, infrastructure, and redevelopment where it makes sense. Developing with density in mind is important because it helps use land more effectively. This approach protects farmland while addressing the urgent need for housing and vibrant local economies. Density isn’t a threat; it’s a tool that makes communities more efficient, walkable, and connected, while keeping our fields green. Minneapolis-based alternative asset manager Proterra acquired investment platform company AcreTrader in a move to round out its investment offerings and to further develop farmland as an asset class. Analysts project a compound annual growth rate of 5.4% for U.S. agricultural land prices through 2027, citing stable demand for row crops and specialty produce. Investing in farm land is also drawing ESG-focused capital flows.