Manulife Investment Management explores the investment case for permanent crops, positioning them as a long-duration real asset tied to global food demand and sustainability trends. The paper highlights how higher-value crops like nuts and fruit can generate differentiated returns, but require patience and operational expertise, with capital often locked up for years before reaching full productivity.
Permanent crops and investment opportunity
Manulife
John L. Farber, Anne Valentine Andrews
Research
13 Pages
Key Takeaways
Long Duration Assets: Permanent crops can take 5–10 years to reach full production, creating a delayed but potentially more stable income profile over decades.
Higher Value Crops: Permanent crops can generate meaningfully higher revenue per acre than row crops, with some specialty crops producing 2–4x more annual value.
Demand Tailwinds Strong: Global food demand is expected to rise ~60% by 2050, supporting long-term pricing power for high-quality crop assets.
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