James Powell, the General Manager – Investor Relations, Corporate Affairs & Sustainability at Rural Funds Management, outlines the appeal of farmland as an investment class. Although farmland is one of the oldest and largest property types, it remains underrepresented in most investment portfolios due to its traditional private ownership.
The Rural Funds Group (ASX:RFF) offers investors access through a passive model—leasing farmland to agricultural operators and distributing rent as income to unitholders. Powell positions farmland as a defensive, income-generating asset class, with the added benefit of providing essential goods—food.
The Group’s strategy centres on three layers of diversification to manage volatility and climate risks: by geography (climatic zones), commodity (eg almonds, cattle, macadamias), and lessee (corporate tenants, many with integrated processing infrastructure).
Finally, James notes that advancements in agricultural technology are driving productivity, particularly in sectors with low labour requirements, further enhancing farmland’s long-term value proposition.
