Green Street explores U.S. farmland as a large but under-owned real estate sector offering stable, long-term returns with unique characteristics versus traditional assets. It highlights farmland’s low volatility and near-zero correlation to equities, while arguing constrained land supply could support durable income growth.
U.S. Farmland Sector Primer
Green Street
Research
81 Pages
Key Takeaways
Massive Underownership Opportunity: U.S. farmland is valued at roughly $2.5T–$3.0T, yet institutional ownership sits near 1% compared to 5–15% in most other real estate sectors.
Strong Risk Adjusted Returns: Over a 25-year period, farmland delivered a Sharpe ratio of 1.2 with lower volatility than equities, including ~20% positive returns during the GFC.
Favorable Supply Dynamics: Global population growth has outpaced arable land expansion, driving a steady decline in farmland per capita and supporting long-term pricing power.
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