Adding value to farmland
It’s time to publish your Farm of the Future report. I am Tim Hammerich.
Over the past hundred years, few assets have been a better store of value than farmland. But some investors want to improve their returns by managing the land to generate even better returns. Craig Wichner of Farmland LP says they approach this from different angles.
Wichner… “We buy conventional farmland and convert it to farmland managed through organic regeneration as an investment fund. We have approximately $200 million of farmland under management and grow a wide variety of crops. And we are really specialized in the reclamation of agricultural land. So adding value, number one, by going organic. Second, by implementing technologies and infrastructure such as drip irrigation systems. And then third, by changing the crops that grow on this land. So, for example, switching from commodity row crops to organic vegetables, or converting to permanent crops like organic blueberries or wine grapes, which are really ideal for this particular terrain.
Once they add value that way, Wichner says they rent it out to farmers who run it from there.
Wichner… “Our core business is improving land management and then leasing that land to farmers who specialize in that particular crop rotation, that particular crop ideal for that parcel of land at that stage of the rotation.”
Another factor to consider when thinking about your farm strategy.