Research - OCTOBER 23, 2014

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Farmland posts lowest returns since 2010

by Reg Clodfelter

After posting the lowest returns since 2011 during the second quarter at 1.73 percent, farmland’s struggles have only gotten worse as the total return for the NCREIF Farmland Index dropped to 1.45 percent during the third quarter, the lowest return the index has seen since third quarter 2010 and more than 140 basis points below the long term average of 2.86 percent.

Despite the easing in the strong momentum the index had been showing, the recent results are still slightly above the long-term average of 1.40 percent for the usually slow third quarter. The results still represent a change of pace for the index, which has a one-year return of 15.48 percent even with two consecutive weak quarters, and posted a 2.94 percent third quarter return a year ago.

The strong returns the farmland sector was pre

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