2021 Farmland Report

Nuveen

Research

36 Pages

Nuveen’s Westchester farmland report explores how global agricultural land functions as an institutional asset, focusing on returns, diversification, and sustainability. It highlights farmland’s historically resilient performance and inflation-hedging traits, while arguing that constrained supply and rising food demand could support long-term value, even as climate and operational risks remain relevant.

Key Takeaways

Resilient Return Profile: U.S. farmland delivered positive annual returns in every rising rate period over 30+ years, with index returns exceeding inflation by more than 2x since 1991.
Global Diversification Benefits: Portfolio spans 2.3M acres across 7 countries and 43 crops, helping offset regional shocks like droughts or commodity volatility.
Supply Demand Imbalance: Global population growth toward 10B by 2050 versus limited arable land supports long-term pricing power, with farmland values rising ~4–5% annually in recent periods.

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