.svg)
Embracing the long-term value of farmland investments
A recent $289 million farmland sale shows the strength of farmland as a "total return" investment. Here's what this means for Iowa landowners with a long-term view.
The recent sale of 46 farms across eight states by Farmland Partners Inc. to Farmland Reserve Inc., the real estate arm of the Church of Jesus Christ of Latter-day Saints, is a significant move in the often quiet world of farmland investments.
This all-cash transaction, totaling $289 million for 41,554 acres, underscores the strength and appeal of farmland as a "total return" investment — a point emphasized by Farmland Partner's President and CEO, Luca Fabbri.
In Fabbri’s words, “Farmland is a 'total return' investment, with asset appreciation typically accounting for a majority of the overall return on invested capital. We have consistently advised shareholders that our company is undervalued due to lack of recognition by the market of the appreciation in our asset base.”
Farmland Partners’ strategy in this sale seems to validate its thesis on long-term returns by realizing a sizable gain, especially in a market where the full valuation of farmland assets isn’t often immediately apparent.
This approach highlights a challenge many of us may potentially face as landowners: realizing the full return from our investments over time.
For those with a long-term vision, farmland provides an investment opportunity that grows in value through both cash flow and land appreciation.
However, this requires a special kind of patience.
Unlike other investments that may promise quicker returns, farmland typically operates on a 15+ year horizon — rewarding those who commit to nurturing and preserving the land for future generations.
Good news for our landowners here in north-central Iowa:
Farmland Partners did not include its highly valuable Illinois farmland in the sale, noting that it is "among the most valuable land that it owns.”
This insight further supports the strategy of holding high-value farmland assets for their long-term appreciation potential.
Reid Weiland is the managing partner of Weiland Farms. He oversees the farm’s day-to-day operations and leads all land management and farmland acquisition efforts.
