Nuveen aims to raise $3 billion for private farmland REIT

A global investment firm, Nuveen, is making a significant move in the agribusiness sector by establishing a private farmland Real Estate Investment Trust (REIT) aimed at leveraging the potential of crop-producing agricultural properties in the United States. Nuveen’s decision comes amid five years of consistent growth in U.S. farmland values, leading them to believe in the sector’s future prospects.

Seeking to secure $3 billion in capital for the new venture, Nuveen is banking on the rising global demand for food, technological advancements in farming, and the diminishing availability of undeveloped farmlands as key drivers that will push land values upwards. Notably, the company already manages over $11.2 billion worth of farmland assets across more than 2 million acres, making it one of the most significant players in the global agricultural investment landscape.

Farmland has always been an attractive asset class for investors due to its stable returns, comparatively low volatility, and its ability to act as a hedge against inflation. Recent figures revealed an upward trend in the average value of cropland in the U.S., hitting $5,830 per acre in 2025—a nearly 5% annual increase and a substantial 44% jump from 2020 levels, according to the Land Values 2025 Summary Report released by the U.S. Department of Agriculture’s National Agricultural Statistics Service.

Nuveen’s Farmland REIT will primarily focus on row crop farms producing staples like corn, cotton, soybeans, and wheat due to their stability provided by annual planting cycles. Alongside these, the REIT will also target permanent crops such as avocados, citrus fruits, tree nuts, and wine grapes. Additionally, investments will be made in water systems and storage facilities to enhance operational efficiency and sustainability in the agricultural assets acquired.

The new REIT, structured as a nonlisted offering, will see shares traded monthly based on the net asset value. Upon reaching the $3 billion fundraising goal, Nuveen plans to acquire the inaugural farmland portfolio through a subsidiary of its parent company, the Teachers Insurance and Annuity Association of America.

Currently, Farmland Partners and Gladstone Land are the only publicly traded farmland REITs in the U.S. As a point of reference, Farmland Partners’ REIT has been known to yield average dividends of 7% over two preceding years, a testament to the sector’s ability to generate lucrative returns for investors looking for stable income streams.