Permanent cropland has strong first quarter

U.S. farmland had a return of 2.08 percent in the first quarter, according to the NCREIF Farmland Index. U.S. farmland includes both annual and permanent cropland.

Permanent cropland showed the strongest performance in the first quarter with a total return of 3.64 percent. This is the strongest first quarter return for the agricultural sector since 2006. The total return for annual cropland was slightly under 1 percent for the quarter.

Permanent cropland total returns tend to fluctuate more than annual cropland returns. While permanent cropland returns are frequently similar to annual cropland returns, they occasionally jump significantly higher.

The Pacific West was the best-performing region with a total return of 3.77 percent; the Mountain region was next with a 2.4 percent total return. Permanent crops in the Pacific West region returned 4.43 percent for the quarter.

The Pacific Northwest was the worst-performing region with a –0.65