Farmland REIT Launch Targets $3B Amid Rising Land Values

Betting Big on US Farmland

Nuveen, one of the world’s largest farmland investors, is expanding its agricultural footprint with the launch of a private farmland REIT aimed at raising $3B, as reported by CoStar.

The firm will target leased crop-producing land across the US, citing growing global food demand, land scarcity, and technological advances in agriculture as key drivers.

The REIT will be a nonlisted offering, with shares priced monthly based on net asset value rather than market fluctuations. Initial assets will come from a subsidiary of Nuveen’s parent company, TIAA, pending an external appraisal.

Strategy and Portfolio

According to regulatory filings, the REIT will primarily invest in row crops such as corn, soybeans, wheat, and cotton, which allow for flexible planting strategies and income stability. It also plans to target permanent crops like tree nuts, citrus, avocados, and wine grapes—particularly in California’s Central Valley.

Beyond farmland, Nuveen is eyeing infrastructure investments tied to agriculture, including water systems and storage facilities—critical assets amid rising climate pressures and tightening water supplies.

As of year-end 2024, Nuveen’s farmland investment arm, Nuveen Natural Capital, managed $13.1B across 3M acres globally.

Market Context

US farmland values continue their upward trajectory, averaging $5,830 per acre in 2025, a 4.7% increase from 2024. While growth has slowed, this marks the fifth consecutive annual rise, according to USDA data. The most valuable farmland lies in Corn Belt states like Iowa and Illinois, driven by productivity and urban proximity.

Though farmland has long been favored by institutional investors for its inflation hedge and income stability, Nuveen’s REIT marks the first nonlisted vehicle of its kind. Publicly traded peers include:

• Farmland Partners ($480M market cap), which is focused on debt reduction and share buybacks.
• Gladstone Land ($330M market cap), known for investing in high-value permanent crops.

Why It Matters

With climate change, urban sprawl, and limited new farmland supply, institutional interest in agriculture is growing. Nuveen’s REIT could set a precedent for more private capital to flow into farmland, a sector increasingly viewed as both a safe haven and a growth opportunity.

What’s Next

Nuveen’s entry could pave the way for more private farmland REITs, especially as institutional investors hunt for stable, inflation-resistant returns. As of now, TIAA oversees $1.3 trillion globally, with $300B allocated to alternative assets like real estate and farmland—signaling that agriculture remains a long-term bet for major asset managers.