Farmland is typically viewed as a medium to long-term investment; however, it also provides liquidity and current cash flow to investors by way of profits from annual lease payments or via annual crop sales depending on the investment strategy. Investors receive a steady and predictable cash flow stream while potentially benefitting from capital appreciation from increasing land values.
Liquidity is also available to investors who choose to pursue a strategy operating farmland. Liquidity is generated through annual crop yields and enables the investors to capitalize on rising agricultural commodity prices. The inherent trade-off in a lease versus operate strategy is operational risk versus participating in the upside of rising commodity prices.