Research - FEBRUARY 4, 2015

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Pacific West farmland significantly outpaces other regions in 2014

by Reg Clodfelter

In 2014, NCREIF’s Farmland Index was unable to match its impressive 2013 pace, which produced an annual return of 19.61 percent, but the index still had a strong 2014 that yielded a 12.63 percent annual return after being capped off with a 6.56 percent return in the fourth quarter.

But those returns varied widely by region. The Pacific West was again the best-performing region by a significant margin with a 14.11 percent fourth quarter return (split 4.20 percent appreciation and 9.92 percent income), well above the runner-up Pacific Northwest’s 2.92 percent fourth quarter return and significantly outpacing the Corn Belt and Mountain region’s returns of –1.05 percent and –0.99 percent, respectively.

The Pacific West was also the only region to produce a 2014 return of more than 20 percent. More strikingly, only one other region, the Pacific Northwest, even eclipsed a 10 percent return in 2014. All six other regions produced annual

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