U.S. farmland investment returns: continued gains in 2022

Manulife

Research

11 Pages

Manulife Investment Management reviews U S farmland investment returns and how continued gains in 2022 support the asset class. They link crop prices, appreciation and institutional ownership to total returns and farmland valuations. In 2022 U S cropland produced a total return near fourteen percent from income and capital growth.

Date published: May 19, 2023

Source: NCREIF Farmland Property Index, as of Q4 2022. It is not possible to invest directly into an index.

Key Takeaways

Farmland return profile: Explains how crop prices, yields and land values together shape long run performance.
Institutional ownership trend: Describes growing institutional participation in U S farmland and what it means for liquidity and governance.
Inflation resilience case: Argues farmland can offer inflation sensitive income and appreciation when consumer prices and interest rates are elevated.

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