PGIM explores how agriculture fits within institutional portfolios, positioning farmland as a real asset with income, diversification, and inflation-hedging characteristics. The paper highlights structural demand growth alongside supply constraints, while arguing agriculture’s risk-return profile may rival traditional assets. It also challenges the perception that farmland is niche, pointing to its scale and evolving institutional adoption.
Investing In Agriculture
PGIM
Bruce D. Phelps
Research
25 Pages
Key Takeaways
Farmland Scale Opportunity: U.S. farm real estate is valued near $2.4T, representing roughly 80% of total farm assets, underscoring the depth and institutional capacity of the asset class.
Fundraising Momentum Rising: Capital raised in agriculture funds doubled from $1.8B to $3.6B in one year, signaling accelerating institutional interest and broader market acceptance.
Crop Strategy Tradeoffs: Permanent crops can take 5+ years to mature but offer higher long-term yields, while row crops use shorter 2–3 year leases with more stable income profiles.
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