Farmland returns 1.91% during third quarter
On Monday the National Council of Real Estate Investment Fiduciaries said farmland returned 1.91% during the third quarter. Investment gains for the quarter were 43 basis points lower than the prior quarter and six basis points lower than the quarter ended a year earlier. According to NCREIF, one potential cause for the lower returns could be this year's drought, which lowered farm yields per acre. Despite the slowdown in the third quarter, farmland posted tremendous gains for investors for the 12 months - in the year ended Sept. 30, the asset class had a one-year total return of 17.64%.