Nuveen, a Chicago, Illinois-based investment management firm with over $1 trillion in assets under management, has set its sights on American farmland in its latest venture.

Nuveen, whose natural capital arm oversees $13.1 billion in assets over a portfolio of 3 million acres, has launched a new private farmland real estate investment trust (REIT), setting its sights on a $3 billion haul from institutional investors, according to a recent SEC filing. Formed as a Maryland statutory trust, this privately placed, non-listed, perpetual-life offering marks Nuveen’s debut as the first major institutional player to launch a non-traded investment vehicle specializing in farmland, according to Stanger Investment Banking data cited by Costar. The strategy blends income stability with long-term growth potential amid surging global food demand and shrinking arable land.

Nuveen will pursue the acquisition and leasing of high-quality U.S. farmland growing essential crops that feed the world, ranging from row crops like corn, soybeans, wheat, cotton and vegetables to permanent plantings such as tree nuts, citrus, olives, avocados and wine grapes, with meaningful exposure to California’s Central Valley.

With farmland reflecting an implicit investment in water, the REIT will favor farms with sustainable supplies, including steady rainfall, resilient groundwater or secure water rights with dependable delivery. As a result, production will be better able to withstand dry spells and a more erratic climate. Beyond owning land, the fund may venture into debt instruments such as commercial mortgages, mezzanine loans, or even stakes in agricultural companies and structured products, while keeping a portion in liquid securities to maintain its unique REIT status.

To hedge against risk while harnessing America’s agricultural scale, Nuveen is spreading its investments across a swath of regions, from the fertile Corn Belt to the sunny Southeast, the Delta’s rich soils, the Mountain West’s expanses, the Pacific Northwest and California’s vibrant farmlands.

Nuveen described the investment opportunity in the filing, stating, “We believe in the strong growth prospects of the agricultural sector driven by increased food demand from a growing and more dietary-discerning population and that investors can benefit from the growth in the agricultural sector through the return characteristics of farmland investment which offer an attractive opportunity for long-term investors.”

Nuveen identified lasting tailwinds for U.S. farmland. In addition to rising food demand, key themes include advances in farming technology and faster adoption, which are cutting production costs and boosting yields while improving farmer profits and the value of the land beneath their crops. Yet, the supply of new farmland remains tight, commanding significant investment to bring it into production.

U.S. cropland values rose to an average of $5,830 per acre in 2025, a 4.7 percent increase compared with 2024, according to the U.S. Department of Agriculture’s National Agricultural Statistics Service in its 2025 Land Values Summary. This extends a five-year trend of steady gains, though the upward momentum has slowed compared to previous years, reflecting a stable yet evolving farmland market.

Structured as a non-listed REIT, this fund bypasses public exchanges, offering shares traded monthly at net asset value for a steady, investor-friendly approach. To get started, Nuveen will acquire an initial portfolio of farmland from a subsidiary of its parent company, the Teachers Insurance and Annuity Association of America (TIAA). Nuveen reportedly joins a lineup that includes two publicly traded U.S. farmland REITs: Farmland Partners and Gladstone Land.

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