Ep. 193 – Rob Moore – Everything You Wanted to Know About Investing in Farmland but Were Afraid to Ask
What's the first thing you think about when you hear the term farmland? Most people have likely never thought about investing in farmland, but today, I have the perfect guest to explain why you might want to consider it.
Rob Moore, general manager at AcreTrader, dives into the details of farmland investing appeal as an asset class and why it can be a powerful addition to a diversified portfolio, especially during uncertain economic times. Rob breaks down the fundamentals of farmland investing, explaining how AcreTrader's platform works, what makes farmland investments unique, and the logic behind buying a finite resource in a world with growing demand and shrinking supply.
Rob and I contrast farmland ownership with other forms of real estate, clear up myths about big corporations taking over family farms, and discuss the mechanics of lease agreements, appreciation, and investor returns. We highlight the intersection of technology, generational farming, and accessible investing, reminding you why sometimes the best asset class is the most boring one in your portfolio.
Growing up in multiple farming communities, I have wanted to have this conversation for some time.
Please enjoy my conversation with Rob Moore.
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ADDITIONAL RESOURCES YOU MAY LIKE
1 Big Idea to Think About
A key takeaway from this episode is that investing in farmland isn’t just about returns—it’s about diversification and risk management, offering a stable, long-term hedge that’s rooted in a real, productive asset with limited supply and consistent demand.
1 Way You Can Apply This
To add stability and diversification to your investment portfolio, consider including a “boring” asset like unlevered farmland, which historically appreciates over time and can act as a hedge against inflation and market volatility. By allocating a small portion of your portfolio to farmland—perhaps through a platform such as Acre Trader—you can not only reduce risk but also gain exposure to an alternative asset class that isn’t correlated with stocks or bonds, helping you move closer to long-term financial goals while enjoying peace of mind.
1 Question to Ask
How could adding a "boring," unlevered investment like farmland help diversify and manage risk in my overall portfolio?
Key Moments From the Show
00:01 Paul welcomes Rob Moore to the Emotional Balance Sheet podcast, setting the stage for a discussion about farmland investing.
01:39 Paul discloses his own and some clients’ investments with Acre Trader; emphasizes transparency.
02:22 Rob highlights diversification as the main thesis for farmland’s role in a portfolio.
04:01 Historical appreciation of American farmland cited at about 6% annually over 50 years.
05:14 Farmland positioned as an inflation hedge and outperformer during economic uncertainty.
06:00 Rob explains Acre Trader’s “unlevered” (no debt) investment model, focusing on risk reduction.
08:20 Differences between farmland and other real estate: no “toilets and tenants,” low depreciation.
10:42 Farmland supply is shrinking due to urbanization, increasing long-term value.
11:01 Explanation of “arable land”—land suitable for growing crops, and its rarity.
13:30 Importance of combining technology with local, generational knowledge in farm investing.
14:13 Less than 5% of farms evaluated make it to Acre Trader’s platform; strict vetting process.
15:18 Reasons farmers sell: scaling up operations, generational changes, or preparing for retirement.
18:45 Sale-leaseback structures allow farmers to keep farming land they sell, benefiting both sides.
20:58 Dispelling the myth that family farms are disappearing due to large institutions; 70-80% of transactions still local.
23:11 Local buyers, not Wall Street firms, typically set farmland prices.
24:10 Influence of commodity prices (corn, soybeans) on farmland value is limited and mostly short-term.
27:33 Two sources of investment returns: appreciation (like a house) and cash flow from leases.
28:38 Typical cash flow is 2–3% annually; focus remains on appreciation and risk-adjusted consistency.
30:12 Lease rates are stable due to crop insurance—farmers pay rent up front, regardless of harvest yields.
31:12 Flex leases allow shared upside in good years; investor-farmer relationship is collaborative.
33:54 Acre Trader provides transparency, open data, and local management to build trust with investors.
35:31 Rob urges listeners to ask tough questions about alternative investments and focus on diversification by risk profile.
39:47 Discussion on investment account types allowed (individual, IRA, trusts), and SDIRA integration.
42:47 Paul appreciates Acre Trader’s timely tax documents, highlighting operational ease for advisors and families.
44:00 Paul closes episode, promising more future conversations about farmland and agricultural investing.
Resources Featured in This Episode: