Farmland Opportunity enables direct investment in high quality, non-irrigated, consistently productive farmland located in Iowa and six surrounding states. We provide an investment structure that allows for direct ownership by an individual and preserves 1031 exchange tax treatment.
The investment case has the following components:
• Attractive, risk adjusted real returns (averaged 9.1% between 1970-2008)
• Uncorrelated with other asset classes (correlation less than .25 with all major asset classes)
• Strong inflation hedge (Farmland outperformed S&P 500 by 34% during 5 periods of high inflation in the 20th century)
• Creates portfolio diversification (10% farmland allocation generates 25-33% more risk adjusted return)
• Significant macroeconomic demand growth (China consumes 15.3 KG P/C of vegetable oil versus 38 KG P/C in the US)
• The investment structure gives the investor direct ownership including control over the ultimate disposition of the asset. Because of this, Farmland Opportunity only charges a management fee and does not charge carry.
Farmland Opportunity provides asset exposure within the target region. We bring local knowledge to bear with comprehensive due diligence to buy a diversified portfolio of high quality land; then manage this complex portfolio on an ongoing basis.