Adding Value to Farmland

Tim Hammerich

News Reporter

Over the past hundred years, few assets have been a better store of value than farmland. But some investors are wanting to improve on their returns by managing the land in a way that it generates even better returns. Craig Wichner of Farmland LP says they approach this from a few different angles.

Wichner… “We buy conventional farmland and convert it to organic regenerativity managed farmland as an investment fund. We have about $200 million worth of farmland under management and grow a wide variety of crops. And we really specialize in adding value to farmland. So adding value, number one, by converting to organic. Number two, by implementing technology and infrastructure such as drip irrigation systems. And then thirdly, by changing the crops that are grown on that land. So for example, switching from commodity row crops to organic vegetables, or converting to permanent crops like organic blueberries or wine grapes, that are really just ideal for that particular piece of land.”

Once they’ve added value in this way, Wichner says they rent it out to farmers who manage it from there.

Wichner… “Our primary business is in improving the management of the land, and then leasing that land out to farmers who specialize in that particular crop rotation, that particular crop that's ideal for that piece of land at that point in the rotation.”

Another factor to take into consideration when thinking about your farm’s strategy.