Urbanization Drives Demand for Timberland and Farmland

Urbanization is fueling long-term demand for farmland and timberland assets.

As cities expand, the need for food, housing and building materials rises, creating the potential for farmland and timberland land value appreciation.

• 75% of U.S. wood products are consumed by residential construction and home improvements (FEA, 2024). Heightened homebuilding activity boosts demand for lumber, which in turn supports stronger timber prices and enhances the value of underlying timberland.
• Urban and suburban expansion often comes at the expense of neighboring farmland. As available arable shrinks, productive farmland generally becomes more valuable.

We believe these trends reinforce why timberland and farmland can be strong additions to client portfolios: they are scarce, in-demand and potentially positioned for appreciation as urbanization provides tailwinds for each asset class.

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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 interested in exploring how farmland and timberland can enhance client portfolios, let’s connect.