Returns from investment in U.S. farmland in the third quarter of this year were the lowest in four years, said the National Council of Real Estate Fiduciaries, a trade group based in Chicago for investors. The council’s Farmland Index showed a return of at 1.45 percent for July through September. “This is the lowest quarterly return since third quarter 2010. It is also below the long-term average total return over the history of the index, 2.86 percent,” said the council in a statement.
“There continues to be strong interest in many markets for high-quality farmland from both institutional investors as well as local farmers on property that comes up,” said Christopher Jay, chair of the council’s farmland committee.
Said AgriMoney, “The data tally with findings from other surveys of a slowing US farmland market, undermined by steep declines in crop prices, although estimates for the extent of the slowdown differ.”