Farmland returned 1.45% in the third quarter of 2014, down 28 basis points from the previous quarter and down 149 basis points from the third quarter a year ago. It was the lowest quarterly return since the third quarter of 2010.
The quarterly return comprises 0.48% appreciation and 0.97% income return.
The trailing four-quarter return fell to 15.48% from 17.18%.
Christopher Jay, chairman of the NCREIF farmland committee and director of financial analysis with Prudential Agricultural Investments, said that despite lower returns, “there continues to be strong interest in many markets for high-quality farmland from both institutional investors as well as local farmers on property that comes up for sale.”
