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Van Lanschot Kempen

Risks and rewards of investing in farmland

17. March 2025

Keeping the balance between the demand for land and the protection of natural capital is crucial for a sustainable future.

Risks and rewards of investing in farmland

With rising global demand for food, livestock and power sources, farmland is emerging as a compelling investment. Van Lanschot Kempen outlines in a new white paper the risks and rewards of investing in this asset class. As the asset manager lines out, farmland as a real asset has a low correlation with other asset classes, performs well in an inflationary environment, and tends to provide stable returns over long periods.

“In summary, the renewed interest in farmland investment is driven by its potential for sustainable returns and its role in addressing environmental challenges. As investors increasingly recognise the value of nature, regenerative farming practices are likely to gain more traction, contributing to a more resilient and sustainable agricultural sector,” the white paper states.

Download the full white paper here.