NCREIF Farmland Index increases in fourth quarter

The National Council of Real Estate Investment Fiduciaries (NCREIF) has released the fourth quarter 2020 results of the NCREIF Farmland Index. The total return for the fourth quarter was 1.59 percent, up from 0.96 percent the previous quarter, but down from 2.34 percent in the fourth quarter of 2019. The quarterly total return was composed of 1.53 percent income return, and appreciation of 0.06 percent.

Fourth quarter income return for the Total Farmland Index was 70 basis points lower than last year, when the fourth quarter income return was 2.23 percent. Farmland values were mixed in the fourth quarter, with annual cropland posting appreciation of 0.73 percent, and permanent cropland posting appreciation of ­–0.94 percent, after registering appreciation of 0.30 percent and 0.06 percent, respectively, in the third quarter.

The trailing four-quarter total farmland return was 3.08 percent through year-end 2020, compared with 4.81 percent for the four quarters ending