Maximizing Farmland Investment Returns

As the farmland investment landscape evolves, landowners have found new ways to generate non-traditional income – often on the same land already in production.

Here are five ways farmland can be leveraged to enhance returns:

1. Renewable Energy Leasing - Long-term leases for solar or wind installations can generate consistent, passive income.
   
   
2. Agrivoltaics - In some regions, solar panels have been installed above crops or grazing areas, allowing for dual-use income from both food and energy production.
   
   
3. Carbon Sequestration Programs - Farmers can earn payments by implementing soil practices that capture and store carbon. These carbon credits can be sold to corporations seeking to offset emissions, creating a new revenue stream with little up-front investment.
   
   
4. Recreational leases - Leasing land for hunting, fishing, or private recreation can provide seasonal income with minimal impact on core operations.
   
   
5. Offtake Agreements - For energy-producing farmland, these agreements lock in buyers – like utility companies – for future output. That means historically predictable, long-term cash flow with potentially higher premiums.

For farmland investors, we believe these alternative uses aren’t about changing the strategy – they’re about maximizing the value of the land and tapping into additional uncorrelated income sources.

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

If you’re an RIA looking to diversify your clients’ portfolios with real assets, let’s connect.