According to the National Council on Real Estate Investment Fiduciaries (NCREIF) quarterly report on farmland returns, farmland investments returned 20.9% in 2013. The most significant gain was made in the fourth quarter of the year at 9.26% after a gain of only 2.94% in the third quarter. The 20.9% return in 2013 is the most significant performance since 2006 which had returns on institutional farmland investments of 21.2%. The following article states that when investing in a farmland fund an investor must understand the region being invested in, the applicable commodity cycles, the necessary capital expenditures needed, and to have trusted local farm asset managers. Also included is a graphic charting farmland investment returns for every quarter from 1992 through 2013.
To receive relevant news stories with summaries provided by GAI Research & Insight, subscribe to Global AgDevelopments, our free bi-weekly enhanced eNews service