Farmland returns in the second quarter of 2014, at 1.73 percent, were the lowest since 2011, according to the NCREIF Farmland Index, released by the National Council of Real Estate Investment Fiduciaries.
NCREIF’s index tracked the performance of 539 investment-grade farm properties, comprised of 395 annual crop properties and 144 permanent farm properties. The total return comprised appreciation of 0.78 percent and income of 0.95 percent.
“Both the income and appreciation returns for the Farmland Index in second quarter were lower than the second quarter returns from a year ago,” comments Christopher Jay, chairman of the NCREIF Farmland Committee and director of financial analysis with Prudential Agricultural Investments, in a statement. In the second quarter of 2013, the index had a total return of 1.97 percent.
Returns over the past year also declined, with the four-quarter rolling return falling to 17.17 perc