The U.S. is seeing a surge in utility-scale solar projects, and much of that growth is happening on farmland:

• Farmland conversion to solar has tripled since 2020
• Nearly half of all utility-scale solar projects are located on agricultural land
• States like Indiana, Illinois, and Ohio have seen 6x growth since 2020

Solar leases are creating a new dynamic in rural America with developers offering landowners significantly higher rents than traditional crop leases, driving competition and reshaping local agriculture economies. Most deals are structured as options, with a fixed option payment paid to the landlord during the option period. If the option is executed, the land will be converted to solar and the developer will either buy or lease the land from the landowner, often at values many times above farmland value.

For The Harrison Street Real Assets Fund (VCRRX), this trend supports the long-term value of farmland:

• Solar adds a durable, non-correlated income stream during the option period, with potential for outsized gains if the options is executed
• Expanding demand enhances landowner optionality

It is important to note that solar acreage on farmland is small in comparison to the total size of the farmland market. Even in an extreme scenario, where 100% of the country's electricity came from solar, less than 2% of U.S. farmland would be needed. The acreage impact is small, but the income potential is real.

Note: Investing involves risk and principal loss is possible. Distributed by Foreside Funds Distributors LLC. For important information about the Fund, please click here.

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