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Bill Gates, the largest private owner of farmland in the United States with nearly 250,000 acres in his portfolio, has drawn attention to the growing allure of farmland as an investment.
For those intrigued by agricultural land’s stability and long-term value, farmland real estate investment trusts (REITs) offer a practical way to gain exposure to the asset class. These REITs allow investors to benefit from the growing demand for food and agricultural products without the large upfront costs or operational complexities of buying and managing a farm.
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Here are two farmland REITs you could invest in today.
Gladstone Land Corp.
As of June 30, Gladstone Land Corp. (NASDAQ:LAND) owns and manages 168 farms containing approximately 111,836 acres across 15 states. Gladstone primarily focuses on farms that grow fresh produce annually, including most fruits and vegetables, as well as certain permanent crops, including blueberries and nuts.
Gladstone Land currently pays a monthly dividend of $0.0467 per share, which equates to an annualized dividend of $0.5604 per share and gives its stock a yield of about 4.1% at the time of this writing.
In addition to a high yield, Gladstone Land offers dividend growth. It raised its dividend by 0.2% in July, marking the 35th time the company has increased its dividend over the prior 38 quarters. The company also notes that it has paid 137 consecutive monthly dividends since its initial public offering in January 2013.
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Farmland Partners
As of June 30, Farmland Partners (NYSE:FPI) owned and/or managed nearly 300 farms containing approximately 180,063 acres of farmland in 17 U.S. states, making it the largest farmland REIT in the country by acreage. It also owns land and buildings for four agriculture equipment dealerships in Ohio that are leased to Ag-Pro under the John Deere & Co. brand.
Farmland Partners currently pays a quarterly dividend of $0.06 per share, which equates to an annualized dividend of $0.24 per share and gives its stock a yield of about 2.4% at this time.
While its yield is much lower than Gladstone's, it's worth noting that Farmland Partners paid a special dividend of $0.21 per share in January due to the strong farmland market in 2023. If you were to factor this special dividend into its total for 2024, its yield would be over 4%.
Better Yields Than Some REITs?
The current high-interest-rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through REITs.
Arrived Homes, the Jeff Bezos-backed investment platform has launched its Private Credit Fund, which provides access to a pool of short-term loans backed by residential real estate with a target 7% to 9% net annual yield paid to investors monthly. It paid 8.1% in July. The best part? Unlike other private credit funds, this one has a minimum investment of only $100.
As long-term rates go down and short-term rates stay high, there’s a unique chance to invest in fix & flip loans before yields drop. Check out Benzinga's favorite high-yield offerings.
This article Invest In Farmland Like Bill Gates, With These REITs Yielding Up To 4.1% originally appeared on Benzinga.com