The NCREIF Farmland index returned 1.16% in the second quarter, composed of 0.53% appreciation and 0.64% income return. It is the lowest quarterly return since the third quarter of 2010 when the index returned 1.03%.
The second-quarter return is well below the historical average. Since the index's inception in 1991, the average second-quarter return is 2.22% (with a median return of 1.97%).
According to NCREIF, permanent cropland outperformed annual cropland for the third straight quarter with returns of 1.27% and 1.08%, respectively. The index is up 11.63% over the past year.
NCREIF is holding a webinar Aug. 6 to discuss the quarterly results of all its indexes, including farmland.