How To Invest In Farmland REITs For Beginners 2023

Table of Contents

Introduction

Investing in farmland REITs can be a smart choice for those looking to diversify their investment portfolio and potentially earn strong returns. But for beginners, the concept of investing in farmland REITs may be unfamiliar and overwhelming.

This guide aims to provide a comprehensive overview of what farmland REITs are, how they work, and how to get started investing in them. It will cover the important aspects of researching, investing and managing farmland REITs.

Definition of Farmland REITs

Farmland Real Estate Investment Trusts (REITs) are publicly traded companies that own and manage agricultural land. These REITs generate income by renting out the land to farmers and other agricultural operators, and by selling crops and other products grown on the land.

The value of the REITs is tied to the value of the land itself, which can appreciate over time. Farmland REITs allow investors to invest in agricultural land without the need to manage the land themselves. They can provide a way to gain exposure to the agricultural sector through the stock market.

Importance of Farmland REITs in an investment portfolio

Farmland REITs, or Real Estate Investment Trusts that invest in farmland, can offer a number of advantages to investors as part of a diversified investment portfolio.

Hedge against inflation: Because the value of farmland tends to rise with inflation, investing in farmland REITs can help protect your portfolio from the negative effects of rising prices.
Strong returns: The price of farmland has historically risen at a rate higher than inflation, and REITs that own and manage farmland can also generate income from farming operations, rental income, and appreciation of the land.
Diversification: Investing in farmland REITs can help diversify your portfolio by adding an asset class that is not closely correlated to traditional stocks and bonds.
Sustainable investments: As the global population continues to grow, the demand for food is expected to increase, which can drive up the value of farmland. Additionally, the farmland can be used for other purposes such as producing renewable energy, carbon sequestration, and wildlife habitats.

Overall, farmland REITs can be a valuable addition to any investment portfolio, offering the potential for strong returns, inflation protection, diversification, and sustainability.

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Understanding Farmland REITs

Comparison with traditional REITs

Farmland REITs invest specifically in agricultural land and related assets, such as farmland, timberland, and other natural resources. Traditional REITs, on the other hand, invest in a variety of real estate assets such as commercial buildings, residential properties, and shopping centers.

One key difference between farmland REITs and traditional REITs is their income-generating capabilities. Farmland REITs generate income not only from rent, but also from farming operations, such as crop yields and livestock. While traditional REITs generate income mainly from rent and lease payments.

Another difference is that the value of farmland tends to be less correlated with traditional real estate and the overall stock market, which can provide diversification benefits.

Additionally, farmland REITs can also be considered as sustainable investments. As the global population continues to grow, the demand for food is expected to increase, which can drive up the value of farmland.

How Farmland REITs work

Farmland REITs work by allowing investors to purchase shares in a publicly traded company that owns and manages agricultural land. The REIT acquires farmland through various means such as buying land, leasing land, or entering joint ventures with farmers.

The REIT then generates income by renting out the land to farmers and other agricultural operators, and by selling crops and other products grown on the land.

Farmland REITs are required by law to distribute at least 90% of their taxable income to shareholders in the form of dividends. This income can come from a variety of sources, such as rent from tenants, crop yields, and livestock sales.

The value of the REIT is tied to the value of the land itself, which can appreciate over time, and the REITs can also generate income from farming operations, rental income and appreciation of the land.

Investors can buy shares in a farmland REIT just like they would with any other publicly traded stock. They can do this through a brokerage account or through a financial advisor. They can also sell their shares at any time, just like any other publicly traded stock.

Types of Farmland REITs

There are several different types of Farmland REITs, each with their own unique characteristics and investment strategies. Some of the most common types include:

Crop-Specific Farmland REITs: These REITs focus on specific crops such as corn, soybeans, or wheat and may have operations in a specific region.
Livestock Farmland REITs: These REITs focus on farming operations that raise livestock such as cows, pigs, and chickens.
Timberland REITs: These REITs focus on owning and managing timberland, which can be used for logging and other related activities.
Natural Resource REITs: These REITs focus on owning and managing natural resources such as oil, gas, and minerals.
International Farmland REITs: These REITs focus on owning and managing farmland outside of the United States.
Organic Farmland REITs: These REITs focus on owning and managing organic farmland that is not treated with synthetic fertilizers, pesticides, or genetically modified organisms.
Sustainable Farmland REITs: These REITs focus on owning and managing farmland that is sustainable and environmentally friendly, and that is used for purposes such as carbon sequestration, renewable energy, and wildlife habitats.

Each type of REIT will have a different risk and return profile and it’s important for investors to conduct thorough research and understand their investment strategy.

Researching Farmland REITs

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Identifying potential Farmland REITs

There are several ways to identify potential Farmland REITs for investment.

Research publicly traded REITs: One of the easiest ways to identify potential farmland REITs is to research publicly traded REITs that own and manage agricultural land. Some REITs may be specifically focused on farmland, while others may have farmland as just one component of their overall portfolio.
Check REITs’ financial statements: Once you have identified a potential REIT, it’s important to check their financial statements to see how much of their portfolio is allocated to agricultural land and what are their income sources.
Look for REITs with a track record of strong performance: When researching potential REITs, it’s also important to look for those that have a track record of strong performance. This can be measured by looking at the REITs’ historical returns, dividends, and occupancy rates.
Analyze the management team: The management team’s track record and experience in managing farmland is also an important factor to consider when identifying potential REITs.
Consult with a financial advisor: It’s also a good idea to consult with a financial advisor or professional with expertise in REITs and farmland investments. Who can provide guidance and advice on identifying potential REITs that align with your investment goals.

In summary, identifying potential farmland REITs can be done by researching publicly traded REITs. Checking their financial statements, looking for REITs with a track record of strong performance, analyzing the management team and consulting with a financial advisor.

Conducting due diligence

Conducting due diligence on a farmland REIT is an important step in the process of evaluating a potential investment. Here are some key steps to take when conducting due diligence on a farmland REIT:

Research the REIT’s management team: Look into the background and experience of the REIT’s management team. This will give you an idea of their track record and whether they have the skills and experience necessary to manage the REIT effectively.

Review the REIT’s financial statements: Look at the REIT’s financial statements to get a sense of its financial health. This will help you understand the REIT’s income sources, expenses, and overall financial performance.
Analyze the REIT’s portfolio: Look at the REIT’s portfolio of properties to get a sense of the types of properties it owns, and where they are located. This will help you understand the REIT’s income sources and the risks associated with its properties.
Review the REIT’s lease agreements: Look at the REIT’s lease agreements to get a sense of the terms of the leases, such as the length of the leases, the rent, and the terms of renewals.
Look at the REIT’s occupancy rate: Look at the REIT’s occupancy rate to get a sense of how well it is able to maintain its properties, and whether it has any issues with finding tenants.
Consult with experts: Consult with experts such as financial advisors, real estate professionals, and agricultural experts to get a sense of the REIT’s prospects and the market conditions in which it operates.
Look for red flags: Look for any red flags such as lawsuits, regulatory actions, or other issues that may indicate financial distress or poor management.
Check the REIT’s history of dividend payments: Look at the REIT’s history of dividend payments to get an idea of the consistency of its dividends, and whether or not it has a history of cutting dividends.

In summary, conducting due diligence on a farmland REIT involves researching the REIT’s management team, reviewing its financial statements, analyzing its portfolio, reviewing its lease agreements, looking at its occupancy rate, consulting with experts, looking for red flags, and checking the REIT’s history of dividend payments.

Evaluating potential returns and risks

Evaluating potential returns and risks when investing in farmland REITs involves analyzing several key factors.

Historical returns: Look at the REITs’ historical returns, dividends, and occupancy rates to get an idea of the potential returns.
Rental income and farming operations: Look at the REITs’ income sources, such as rental income from tenants and crop yields, to get an idea of the potential returns.
Inflation hedge: Farmland tends to appreciate at a rate higher than inflation, which can provide a hedge against inflation.
Diversification: Investing in farmland REITs can help diversify your portfolio by adding an asset class that is not closely correlated to traditional stocks and bonds.
Sustainability: Investing in farmland REITs can also provide sustainability benefits, as the global population continues to grow, the demand for food is expected to increase, which can drive up the value of farmland. Additionally, the farmland can be used for other purposes such as producing renewable energy, carbon sequestration, and wildlife habitats.
However, it’s important to also consider the risks associated with farmland REITs.
Market Risk: Farmland REITs are subject to market risk, just like any other publicly traded stock. The value of the REIT can fluctuate based on economic conditions and the overall stock market.
Interest rate risk: Farmland REITs are also subject to interest rate risk, as changes in interest rates can affect the value of the REIT.
Risk of natural disasters: The risk of natural disasters such as drought, flood, and storms can also affect the value of the REIT.
Changing regulations: Changes in regulations, such as changes in the laws governing farmland ownership, can also affect the value of the REIT.

Overall, evaluating potential returns and risks when investing in farmland REITs requires a comprehensive analysis of the REITs’ historical returns, income sources, inflation hedge, diversification, sustainability, and the risk factors associated with the REITs.

Factors affecting the value of farmland REITs

There are several factors that can affect the value of farmland REITs, including:

Agricultural commodity prices: The prices of agricultural commodities, such as corn, soybeans, and wheat, can affect the value of farmland REITs. When commodity prices are high, farmland REITs can generate higher crop yields, which can drive up the value of the REIT.
Interest rates: Interest rates can affect the value of farmland REITs in several ways. When interest rates are low, it can be less expensive for REITs to borrow money to acquire farmland. Which can drive up the value of the REIT. Additionally, when interest rates are low, the value of the REIT’s rental income may be more attractive to investors.
Weather conditions: Weather conditions, such as drought or flooding, can affect crop yields and the value of farmland. This can affect the value of farmland REITs, especially if the REITs have properties in areas that are susceptible to weather-related risks.
Government policies: Government policies, such as changes in laws governing farmland ownership, can also affect the value of farmland REITs. For example, if laws are changed to make it more difficult for REITs to acquire farmland, the value of existing REITs may be negatively impacted.
Farmland values: The values of farmland, which can be affected by factors such as population growth, food demand, and land use regulations, can also affect the value of farmland REITs.
Technological advances: Technological advances in farming, such as precision agriculture, can also affect the value of farmland REITs. These advances can increase crop yields, reduce costs, and improve the efficiency of farming operations, which can drive up the value of the REIT.
Economic conditions: Economic conditions, such as inflation, GDP growth, and unemployment rate can affect the value of farmland REITs. A strong economy can drive up the demand for food, which can drive up the value of farmland and farmland REITs.

In summary, factors that can affect the value of farmland REITs include agricultural commodity prices, interest rates, weather conditions, government policies, farmland values, technological advances, and economic conditions.

Investing in Farmland REITs

How to buy shares in Farmland REITs

There are several ways to buy shares in Farmland REITs:

Purchase shares on a stock exchange: Many Farmland REITs are publicly traded, which means they can be purchased on a stock exchange like the NYSE or NASDAQ. You can buy shares through a brokerage account or a financial advisor.
Participate in a REIT’s Initial Public Offering (IPO): Some Farmland REITs may go public through an IPO, which allows investors to purchase shares at the time of the offering.
Purchase shares directly from the REIT: Some REITs may allow you to purchase shares directly from them, bypassing the stock exchange or an IPO.
Invest in a REIT ETF or Mutual Fund: Exchange-traded funds (ETFs) and mutual funds that focus on REITs, including farmland REITs, are another way to gain exposure to this asset class.
Consider private REITs: Some REITs may not be publicly traded, but may be available to accredited investors through private offerings.

Financing options for Farmland REITs

Farmland REITs, like other real estate investment trusts, may use a variety of financing options to acquire and manage their properties. Here are some of the most common financing options for Farmland REITs:

Debt financing: Farmland REITs may use debt financings, such as mortgages and loans, to acquire properties. This allows them to leverage the properties’ value to acquire more properties than they could with equity financing alone.
Equity financing: Farmland REITs may also raise capital by issuing shares of stock to investors. This allows them to acquire properties without incurring debt.
Joint ventures: Farmland REITs may enter into joint ventures with other companies or investors to acquire and manage properties. This allows them to share the risk and costs of the venture.
Mezzanine financing: Farmland REITs may use mezzanine financing, which is a form of debt that is subordinate to traditional mortgages. This type of financing is often used in situations where traditional financing is not available.
Sale-leaseback transactions: Farmland REITs may use sale-leaseback transactions, where they purchase properties from other companies or investors. Then lease the properties back to the original owners. This allows them to acquire properties without incurring debt.
Renewable energy financing: Some farmland REITs may also use renewable energy financing to fund their projects. Such as solar or wind projects, by attracting financing from institutions such as pension funds, insurance companies, or banks.

It’s important to note that the financing options chosen by a Farmland REIT may depend on various factors such as the size and type of the properties being acquired, the REIT’s credit rating, and the current economic conditions. Additionally, REITs may use a combination of different financing options to acquire and manage their properties.

Tax implications of investing in Farmland REITs

Investing in Farmland REITs can have various tax implications, depending on the type of investment vehicle, the investor’s tax situation, and the specific laws in the investor’s jurisdiction. Here are some general tax implications to consider when investing in Farmland REITs:

Dividends: Farmland REITs often pay dividends to shareholders, and these dividends are generally taxed as ordinary income.
Capital gains: When an investor sells their shares in a Farmland REIT at a profit, they may have to pay capital gains taxes on the profit.
Depreciation: Farmland REITs may take depreciation deductions for the properties they own. These deductions can reduce the REIT’s income subject to taxes, which can in turn reduce the dividends paid to shareholders.
Foreign ownership: Some farmland REITs may own properties in foreign countries, which can have tax implications for foreign investors. These investors may be subject to taxes in both their home country and the country where the properties are located.
Renewable energy financing: Some farmland REITs may use renewable energy financing, such as solar or wind projects, which can have tax implications such as tax credits or deductions.
Basis adjustment: When an investor sells their shares in a Farmland REIT, they may need to adjust their tax basis in the shares, which can affect the calculation of capital gains taxes.
State and local taxes: State and local taxes may also apply to investments in Farmland REITs, such as property taxes on the REIT’s properties.

Every investor’s tax situation is unique, and the specific tax implications of an investment in Farmland REITs may vary depending on the investor’s personal circumstances.

Managing your Farmland REITs

Understanding the responsibilities of farmland REIT ownership

Ownership of farmland through a Real Estate Investment Trust (REIT) can come with certain responsibilities for the REIT and its shareholders. Here are some of the key responsibilities of farmland REIT ownership:

Property management: The REIT is responsible for managing and maintaining the properties it owns. This can include tasks such as leasing out farmland to tenant farmers, maintaining buildings and infrastructure, and ensuring that the properties are in compliance with local laws and regulations.
Environmental responsibility: Farmland REITs have a responsibility to ensure that the properties they own are being used in an environmentally sustainable manner. This can include implementing sustainable farming practices, adhering to environmental regulations, and monitoring for potential pollution or conservation issues.
Tenant relations: The REIT is responsible for managing relationships with tenant farmers, who may lease the farmland from the REIT. This can include negotiating lease agreements, enforcing lease terms, and addressing any disputes that may arise.
Financing and budgeting: The REIT is responsible for securing financing to acquire and manage properties and creating budgets to operate their properties effectively.
Regulatory compliance: Farmland REITs must comply with various regulations such as those set by the SEC and the IRS, related to REITs, farmland ownership, and other laws that may apply to the specific properties they own.
Reporting and transparency: REITs are required to disclose financial information and other data to shareholders, such as dividends, earnings, and the value of the properties they own.
Risk management: The REIT is responsible for identifying and managing risks associated with its properties such as weather, crop yields, and market fluctuations.

These responsibilities are important to ensure that the REIT and its shareholders are able to successfully acquire, manage and benefit from the properties they own.

Choosing the right management strategy

When choosing the right REIT management strategy, there are several factors to consider:

Investment objective: The first step is to define your investment objective. Are you looking for income, growth, or a combination of both? The type of REIT you choose will depend on your investment objective.
Diversification: Diversification is key to a successful REIT management strategy. Consider investing in a mix of different types of REITs, such as office, retail, residential, and industrial, to spread out risk.
Risk tolerance: Consider your risk tolerance when choosing a REIT management strategy. Some REITs, such as those that focus on development or redevelopment projects, may carry more risk than others.
Fundamentals: Look at the fundamentals of the REIT, such as occupancy rates, revenue, and dividends, to determine its overall health and potential for growth.
Management team: Research the management team of the REIT to understand their experience and track record in the real estate industry. A strong management team can make a big difference in the performance of a REIT.
Location: Consider the location of the REIT’s properties, as well as the overall economic and demographic trends in that area. Properties in growing areas with strong demand for real estate are more likely to appreciate in value.
Tax implications: Be aware of the tax implications of investing in REITs, such as the tax treatment of dividends and capital gains, and consult with a tax advisor to understand how REITs may fit into your overall investment strategy.
Liquidity: REITs can be less liquid than other investments, meaning that it may take longer to buy or sell shares of a REIT. Consider the liquidity of the REITs you are interested in and how it aligns with your financial goals and risk tolerance.
Fees: REITs may have fees and expenses that can be higher than other types of investments, so it’s important to understand the fees associated with the REITs you are considering before investing.

In summary, when choosing the right REIT management strategy, it’s important to define your investment objective, consider diversification, risk tolerance, and the fundamentals of the REIT, research the management team, location and tax implications, liquidity, and fees.

Maximizing returns and minimizing risks

Maximizing returns and minimizing risks with farmland REITs involves a combination of strategic investing and ongoing management. Here are some tips for maximizing returns and minimizing risks with farmland REITs:

Diversify: Diversify your portfolio by investing in a mix of different types of farmland REITs, such as those that focus on different crops or regions. This can help spread out risk and potentially increase returns.
Conduct due diligence: Before investing, thoroughly research the REIT and its management team. Look at the occupancy rates, revenue, dividends, and overall health of the REIT.
Understand the market: Keep track of market trends and conditions in the regions where the REIT’s properties are located. This can help you anticipate changes in demand and pricing.
Stay informed: Stay informed about laws and regulations that may affect the REIT, such as changes in environmental or labor laws.
Monitor the REIT’s performance: Regularly review the REIT’s financial statements and performance metrics to ensure that the REIT is meeting your expectations.
Consider the tax implications: Be aware of the tax implications of investing in REITs, such as the tax treatment of dividends and capital gains, and consult with a tax advisor to understand how REITs may fit into your overall investment strategy.
Consider the management team: Investing in a REIT with a strong management team can be beneficial for the long-term performance of the REIT and reduce risks
Evaluate the liquidity: REITs can be less liquid than other investments, meaning that it may take longer to buy or sell shares of a REIT. Consider the liquidity of the REITs you are interested in and how it aligns with your financial goals and risk tolerance.

In summary, maximizing returns and minimizing risks with farmland REITs can be achieved by diversifying your portfolio. Conducting due diligence, understanding the market, staying informed, monitoring the REIT’s performance, considering the tax implications. Evaluating the management team and the liquidity of the REITs.

Can REITs sell property?

REITs can sell their properties just like any other property owner. However, REITs must comply with certain regulations when selling properties.

According to the U.S. tax code, REITs must distribute at least 90% of their taxable income to shareholders as dividends, and this includes proceeds from the sale of properties. This means that when a REIT sells a property, the proceeds from the sale must be distributed to shareholders as dividends.

Additionally, REITs are required to maintain a diversified portfolio of properties, which means that they cannot sell off all of their properties in one single transaction. They have to follow the guidelines set by the SEC and the IRS, to diversify their holdings.

Furthermore, REITs, like other real estate investors, are subject to capital gain tax when they sell property. The capital gain is calculated by subtracting the purchase price and any related expenses from the selling price.

In summary, REITs can sell property, but they must comply with certain regulations, such as distributing the proceeds from the sale to shareholders as dividends and maintaining a diversified portfolio. Additionally, the sale of property may have tax implications for the REIT and its shareholders.

Exiting your Farmland REIT investment

Understanding the exit options

When investing in farmland REITs, it’s important to understand the exit options available to shareholders. Here are some common exit options for farmland REITs:

Sell shares on the open market: Shareholders can sell their shares of a farmland REIT on the open market, just like with any other publicly traded security. This allows shareholders to cash out their investment at any time, but the price at which they sell may be affected by market conditions and the performance of the REIT.
Wait for dividends: Many farmland REITs pay dividends to shareholders on a regular basis. Shareholders can choose to hold their shares and collect these dividends as a source of income.
Wait for capital appreciation: Shareholders can hold their shares in a farmland REIT and wait for the value of the REIT to increase, which can lead to capital appreciation and higher returns on investment.
Wait for a merger or acquisition: Shareholders can hold their shares in the hope that the REIT will be acquired by another company, which can lead to a significant increase in the value of the REIT’s shares.
Wait for the REIT to liquidate: Shareholders can hold their shares in the hope that the REIT will liquidate its assets, which can lead to a distribution of cash or other assets to shareholders.

It is important to note that these exit options are not guaranteed, and the performance and value of the REIT may fluctuate over time.

Timing the sale

Timing the sale of farmland REIT shares is an important consideration for maximizing returns and minimizing risks.

Factors to consider include market conditions, the REIT’s performance, tax implications, diversification of the portfolio, long-term plans and market volatility.

Shareholders should regularly review the REIT’s financial statements and performance, pay attention to trends in the real estate market, and consider the tax implications of selling shares

Maximizing the value of your investment

Maximizing the value of your investment in farmland REITs involves a combination of strategic investing and ongoing management. Here are some tips for maximizing the value of your investment in farmland REITs:

Diversify: Diversify your portfolio by investing in a mix of different types of farmland REITs, such as those that focus on different crops or regions. This can help spread out risk and potentially increase returns.
Conduct due diligence: Before investing, thoroughly research the REIT and its management team. Look at the occupancy rates, revenue, dividends, and overall health of the REIT.
Understand the market: Keep track of market trends and conditions in the regions where the REIT’s properties are located. This can help you anticipate changes in demand and pricing.
Stay informed: Stay informed about laws and regulations that may affect the REIT, such as changes in environmental or labor laws.
Monitor the REIT’s performance: Regularly review the REIT’s financial statements and performance metrics to ensure that the REIT is meeting your expectations.
Consider the tax implications: Be aware of the tax implications of investing in REITs, such as the tax treatment of dividends and capital gains, and consult with a tax advisor to understand how REITs may fit into your overall investment strategy.
Consider the management team: Investing in a REIT with a strong management team can be beneficial for the long-term performance of the REIT and reduce risks
Evaluate the liquidity: REITs can be less liquid than other investments, meaning that it may take longer to buy or sell shares of a REIT. Consider the liquidity of the REITs you are interested in and how it aligns with your financial goals and risk tolerance.
Timing the sale: Shareholders should consider the market conditions, the REIT’s performance, tax implications, diversification, long-term plans and market volatility, when timing the sale of shares.
Exit options: Understand the different exit options available to shareholders such as selling shares on the open market, waiting for dividends, capital appreciation, or a merger or acquisition and plan accordingly.

In summary, maximizing the value of your investment in farmland REITs involves diversifying your portfolio, conducting due diligence, understanding the market, staying informed, monitoring the REIT’s performance, considering the tax implications, evaluating the management team, liquidity and timing the sale and exit options accordingly.

Is farmland exempt from capital gains?

Farmland is generally not exempt from capital gains taxes. However, there are certain tax benefits and exemptions that may apply to farmland, depending on the specific circumstances.

Section 1031 Exchange: Farmers can use Section 1031 of the IRS tax code to defer capital gains taxes when they sell farmland and use the proceeds to purchase a replacement property. This allows farmers to postpone paying taxes on the sale until they sell the replacement property.
Depreciation: Farmers can also claim depreciation on their farmland for tax purposes. This can help lower the taxable income from the sale of the land.
Conservation Easements: Farmers who donate a conservation easement on their land may be eligible for certain tax benefits such as a charitable contribution deduction.
Agricultural Use: If the land is used for agricultural production and is considered a “qualifying property” under the IRS tax code, farmers may be eligible for a reduced capital gains rate or even an exclusion from capital gains taxes.

It’s important to note that these exemptions or benefits are subject to specific rules and conditions, and the tax implications of selling farmland can vary depending on the specific circumstances.

Best Farmland REITs

10 Most Popular US Farmland REITs

Farmland Partners Inc. (FPI) is a publicly traded REIT that owns and leases farmland across the United States. The company’s portfolio includes properties that produce row crops, specialty crops, and permanent crops.
Gladstone Land Corporation (LAND) is a publicly traded REIT that owns farmland primarily used for row crop production in the United States. The company’s portfolio includes properties in California, Florida, Michigan, Nebraska, and Texas.
American Farmland Company (AFCO) is a publicly traded REIT that owns and leases farmland across the United States. The company’s portfolio includes properties that produce row crops, specialty crops, and permanent crops.
Westchester Group Inc. (WG) is a publicly traded REIT that owns farmland primarily used for row crop production in the United States. The company’s portfolio includes properties in California, Florida, Michigan, Nebraska, and Texas.
American Farmland Co. (AFCO) is a publicly traded REIT that owns and leases farmland across the United States. The company’s portfolio includes properties that produce row crops, specialty crops, and permanent crops.
The Growers Transloading Inc. (GTT) is a publicly traded REIT that specializes in the acquisition and leasing of transloading facilities, which are used to transfer bulk commodities from rail cars to trucks.
American Farmland Trust (AFT) is a non-profit organization that works to protect farmland and promote sustainable agriculture.
The Land Connection (TLC) is a non-profit organization that works to promote sustainable farming and local food systems.
The Land Report (TLR) is a magazine and website that covers the world of land ownership and conservation.
Farm Credit Council (FCC) is a national trade association representing the Farm Credit System, a network of cooperative lending institutions that provide credit and financial services to farmers and rural communities

It’s important to note that the size of a REIT does not necessarily indicate its performance or potential as an investment. Additionally, the farmland REIT market is relatively small, and there are a limited number of options available.

Who owns Farmland Partners and other major players in the market

Farmland Partners is a publicly traded company, and its shares are owned by a variety of shareholders including individuals, institutional investors, and mutual funds.

You can view the company’s latest filings with the Securities and Exchange Commission (SEC) to see the top shareholders and their current holdings.

As for other major players in the market, there are several major institutional investors, private equity firms, and family offices that invest in farmland REITs. Some notable examples include:

Brookfield Asset Management: One of the world’s largest alternative asset managers, Brookfield has invested in several farmland REITs, including Farmland Partners and Gladstone Land.
The Blackstone Group: Blackstone is one of the world’s largest private equity firms, and it has invested in several farmland REITs, including Farmland Partners and Gladstone Land.
TIAA: TIAA is a financial services company that provides retirement and investment services to individuals and institutions. The company has invested in several farmland REITs, including Farmland Partners and Gladstone Land.
The Carlyle Group: Carlyle is a global alternative asset management firm, which has invested in farmland REITs
The Vanguard Group: Vanguard is one of the largest investment management companies in the world, and it has invested in several farmland REITs, including Farmland Partners and Gladstone Land.

It’s important to note that the ownership structure of these companies can change over time and it’s important to conduct thorough research and due diligence on any REIT before investing.

Conclusion

Summary of key takeaways

Farmland REITs can be a good long-term investment with the potential for capital appreciation and income through dividends.
Farmland value typically increases over time and REITs provide access to a diverse portfolio of properties.
However, farmland REITs are subject to certain risks such as commodity price fluctuations, weather conditions, economic downturns, and changes in laws and regulations
Diversification, due diligence, staying informed, monitoring the REIT’s performance, considering the tax implications, evaluating the management team, liquidity, and timing the sale and exit options are important factors to consider when investing in farmland REITs
As with any investment, it’s important to consult with a financial advisor to understand the potential risks and rewards and how it aligns with your overall investment strategy.

Additional resources

The National Council of Real Estate Investment Fiduciaries (NCREIF) offers data and information on farmland and other types of real estate investment trusts.
The USDA’s Economic Research Service provides data and research on farmland values and trends.
The American Farmland Trust is a non-profit organization that works to protect farmland and promote sustainable agriculture.
The National Farmland Policy Coalition is a group of organizations that advocates for policies to support the long-term viability of family farming and ranching.
The Farm Credit Council is a national trade association representing the Farm Credit System, a network of cooperative lending institutions that provide credit and financial services to farmers and rural communities.
The National Agricultural Statistics Service (NASS) is the U.S. Department of Agriculture’s (USDA) primary source of agricultural statistics.

Final thoughts on the potential of farmland REITs as a good investment.

Farmland REITs can be a good investment for those looking for a long-term, income-generating investment with the potential for capital appreciation.

The value of farmland typically increases over time, and farmland REITs can provide investors with access to a diverse portfolio of farmland properties. Additionally, farmland REITs typically pay dividends, which can provide a regular source of income for shareholders.

However, it’s important to note that farmland REITs are subject to certain risks, such as fluctuations in commodity prices, changes in weather conditions, and economic downturns. Additionally, the value of farmland REITs can be affected by changes in laws and regulations, as well as the performance of the REIT’s management team.

Farmland REITs also tend to be less liquid than other investments. Meaning that it may take longer to buy or sell shares of a REIT. Investors should diversify their portfolio, conduct due diligence, stay informed, monitor the REIT’s performance and consider the tax implications, evaluate the management team, liquidity and timing the sale and exit options accordingly.