How to Invest in Farmland (And Why It’s One of the Smartest Moves You Can Make)

Short answer: Define your goals, understand what makes land valuable, secure financing, and work with a broker who knows the market. Whether you’re buying physical acres or exploring farmland REITs and crowdfunding platforms, the process is straightforward, but the details matter.

Farmland is one of the most reliable long-term investments out there. It produces income, appreciates over time, and isn’t going anywhere, while the stock market swings and real estate markets cool off.

Here’s how to get started.

Why Farmland Is Worth Your Attention

A Track Record That Speaks for Itself

The NCREIF Farmland Index has tracked U.S. farmland performance for decades, and the numbers are hard to argue with. Farmland has consistently rivaled, and often beaten, the broader stock market with far less volatility.

The appeal comes down to dual income streams:

Rental income from cash rent or crop-share agreements
Farmland value appreciation over time

Strong commodity prices and growing demand for crop production have only strengthened those returns in recent years. Past performance doesn’t guarantee future results, but farmland’s track record as a stable asset class is hard to ignore.

It’s a Tangible Asset You Can Actually Walk On

Unlike a mutual fund, exchange traded fund, or real estate investment trust, farmland is something you can see and touch. It doesn’t depreciate to zero. It doesn’t file for bankruptcy.

For families in rural communities, it carries emotional weight too. Land passed down through future generations isn’t just an investment. It’s a legacy.

Nebraska’s Position in the Farmland Market

Nebraska consistently ranks among the top agricultural states in the United States, thanks to:

Diverse crop production — corn, soybeans, wheat
A strong cattle industry
Extensive irrigation infrastructure

For farmland investors, Nebraska also offers value. Land prices remain more accessible than Iowa or Illinois, which means better entry points and stronger potential returns for your investment portfolio.

Know What You’re Buying: Types of Farmland Investments

Not all farmland investments look the same. Here’s what’s out there.

Tillable Cropland

The most straightforward farmland investment:

Buy productive acres, lease them to a farmer, collect rental income
Soil quality is the single biggest factor in value and return
A few points difference in productivity rating can mean thousands of dollars per acre
Tillable cropland is the backbone of the agriculture sector, and demand stays strong across the U.S.

Irrigated vs. Dryland

In Nebraska, this distinction matters more than almost anywhere:

Irrigated land: higher price, but more consistent crop yields even in dry years
Dryland: more affordable, but production depends entirely on rainfall
Water rights and well permits are critical. Nebraska’s regulations vary by Natural Resources District, so understand them before you buy.

Pasture and Ranchland

Lower price per acre than tillable ground
Returns come through grazing leases
Often carries recreational value — hunting, fishing, general outdoor use
Nebraska’s Sandhills and river corridors offer particularly strong options

Combination and Recreational Properties

Some of the most interesting listings blend tillable acres, pasture, timber, and recreational ground into one purchase. These appeal to investors who want:

Financial returns and personal enjoyment from the same property
An alternative investment that goes beyond a brokerage account
A mix of income sources from a single piece of agricultural land

How to Evaluate a Farmland Investment

Buying farmland isn’t like buying a house. Here’s what actually drives value.

Start With the Dirt: Soil Quality and Productivity

Soil health is the foundation of any farmland purchase:

Productivity ratings (like CSR2 scores) tell you what the land can realistically produce
Higher ratings = higher rent potential and higher resale value
Look at soil types, drainage, and existing conservation plans
Land that’s been neglected may offer upside but could require technical assistance from agencies like NRCS to restore

Location, Access, and Water

Just like any real estate investment, location matters:

Proximity to grain elevators, livestock markets, and transportation routes
Water access: irrigation can make or break a property’s value in Nebraska
Mineral rights and water rights: always investigate before closing. Know what you own above and below the surface.

Understanding the Numbers

Before making an offer:

Calculate potential rental income against the purchase price
Compare asking price to recent comparable sales
Factor in property taxes, insurance, and management costs
Work with a financial advisor to understand how the investment fits your broader portfolio
Don’t overlook a local land broker’s insight on pricing trends

Ways to Invest in Farmland

Buying physical land isn’t the only path into the farming sector. Here are the main investment vehicles.

Direct Ownership

The most traditional, and for most farmland investors, the most rewarding approach:

Purchase a farm, lease it to an operator, collect rental income
Full control over long-term leases, conservation plans, and recreational development
Best for investors who want a hands-on role or personal connection to the land

Farmland REITs

Farmland REITs (real estate investment trusts) pool investor capital to buy and manage agricultural land across the U.S.:

Publicly traded, so they offer liquidity and low barriers to entry
You don’t control the land or management decisions
Returns are tied to the REIT operator’s strategy
A good option for individual investors who want exposure without owning physical acres

Crowdfunding Platforms

Several crowdfunding platform options have emerged in recent years:

Companies like Iroquois Valley let you buy fractional shares of specific properties
Often focused on sustainable agriculture and soil health
Good entry point for newer investors, but understand the fees and lock-up periods
Always confirm you’re working with a registered broker-dealer or properly structured vehicle

Other paths exist — futures contracts, private equity funds, mutual funds — but they’re indirect plays on the agriculture sector rather than true farmland investing. For most individual investors, direct ownership, REITs, or crowdfunding platforms are the most accessible starting points.

Lashley Land’s Fractional Farm Ownership Program

Most farmland investment options fall into two camps — buy the whole farm yourself, or invest passively through a REIT or crowdfunding platform where you never set foot on the land. Lashley Land’s Fractional Farm Ownership Program sits right in the middle.

The concept is simple: multiple accredited buyers pool capital through an LLC to purchase qualified Nebraska farmland. The original farmer stays on as a tenant with a long-term lease, and buyers earn rental income plus potential appreciation, all under professional farm management.

It’s an ownership vehicle built to keep Nebraska land in Nebraska hands, connecting local buyers with local farmers who need capital without walking away from the ground they know.

The program serves two audiences:

Buyers who want to own real Nebraska farmland without buying the whole farm — lower cost of entry, shared risk, passive role, and all the financial benefits of real estate ownership
Landowners who need to unlock equity and strengthen their balance sheet while continuing to farm through a confidential, all-cash transaction with a leaseback option

To qualify as a buyer, you must be an SEC-accredited buyer.

Want the full details? Learn more about our Fractional Farm Ownership Program or call our office at 308-532-9300.

Financing Your Farmland Purchase

Ag Lenders and Farm Credit Institutions

Agricultural lenders — Farm Credit Services, local ag banks, FSA loan programs — are built for this. They understand the land market in ways conventional mortgage lenders don’t.

What Lenders Look For

Down payment of 20–35%, depending on the lender and property
Proof of income or a clear plan for how the land generates returns
Appraisals, soil reports, and water rights documentation

Cash vs. Financed

Cash simplifies the deal and strengthens your offer
Financing lets you leverage capital for improvements or additional purchases
The right answer depends on your situation, goals, and how the land fits your investment portfolio

Lashley Land can connect you with trusted ag lenders familiar with Nebraska land transactions.

Working With the Right Team

Why a Land-Specialized Broker Matters

Farmland is a unique corner of real estate, and general agents often lack the knowledge to navigate it. A land broker brings:

Understanding of soil productivity, water rights, and ag lease structures
Local comparable sales data and pricing trends
Negotiation experience specific to farm and ranch transactions
Insight into how commodity prices and the agriculture sector affect land values

In Nebraska, local expertise matters even more. Values and regulations shift from one part of the state to another.

Other Professionals You’ll Want

Ag attorney — for contract review and title work
Tax advisor — for 1031 exchanges, depreciation, and ag tax benefits

Farm manager — especially if you’re an absentee owner or new to agriculture

Farmland Is a Long Game Worth Playing

Farmland investing rewards those who do their homework: on the soil, the market, and the people they work with. Whether you’re buying your first quarter section or exploring farmland REITs and crowdfunding platforms, the key is understanding what you’re investing in and why.

Nebraska offers some of the best farmland value in the United States — strong productivity, diverse agriculture, and room for appreciation. It’s a proven asset class that has delivered for generations.

Lashley Land brings over 140 years of combined experience in Nebraska land sales. We’re here to walk you through every step.Contact Lashley Land today to talk through your goals and see what’s available.