The U.S. southern Plains region has not only been hit with drought conditions, but the region has been identified as showing the lowest total return on farmland investment for the calendar year 2013 according to the National Council of Real Estate Investment Fiduciaries (NCREIF). Returns from the average U.S. farmland investment slowed to 2.4% quarter on quarter for the first quarter of 2014 – compared to 5.4% for the first quarter of 2013. The decline reflects a drop of 1.53% in land price appreciation and a 0.88% income return. In the southern Plains region the full year return on farmland investment fell to 7.9% from 12.0% for calendar year 2013, reflecting the lowest return of any region. The poor performance comes as 99% of Kansas and 79% of Oklahoma are rated as being in drought, and as a harsh winter has damaged crop conditions. The best performing region was the Pacific west with a return of 31% year on year despite the drought in California. Following the Pacific west were the South East, Mountain states, and Pacific Northwest, all with return between 11% and 13%.
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