The US is an established market given its level of maturity in terms of global agriculture and farmland values versus other countries. It operates against a background of political stability and a strong currency. Furthermore, farm incomes have surged over the past decade through a combination of booming commodity markets and low interest rates, but we see that on sound analysis, a clear set of investment criteria and selecting the right product the US still has rewarding farmland investments to offer. Maximising the performance of farmland as an asset in the US is closely linked to enterprise and therefore regional choice. The question is when and in which region to invest?

Investors in agricultural land are generally looking for ways to benefit from the worldwide demand for food and energy linked commodities. With the US at the forefront of world production and export, the market deserves consideration.

We have focused our analysis on the regions where we believe the best opportunities are currently. We classify the best opportunities according to productive enterprise and focus in on the top performing productive assets available in the US for that particular enterprise.

The US farmland market is multifaceted in terms of enterprise size, soil type, water availability, ownership structure and varying foreign investment policy on a state-by-state basis. This report identifies the constraint on investment performance and illustrates the ‘real’ opportunities available, which can be tailored to the needs of both private and institutional investors via a range of investment vehicles. For example, the private investor whose criteria is based on commodity production and has the ability to acquire scale, with the potential for growth through further aggregation during the term of investment, may concentrate their search in the Corn Belt. Whereas those looking for more specialist cropping ring fenced opportunities might be drawn to the lower reaches of the Mississippi or the productive permanent crops of California.

There are many challenges and obstacles to overcome in order to unlock the full potential of US ‘land capital’, but with the right knowledge and strategy, farmland investors have the ability to acquire assets of significant value and potential. We hope that this Spotlight proves of interest and, if so, that you will contact us if you would like to explore opportunities further.