Investing in Mid-South Farmland

Investing in Mid-South Farmland: A Reliable Investment

March 20th, 2025

At a time when many investors are looking for stability in an increasingly unpredictable market, farmland is rising as an alternative asset class offering tangible value, long-term growth, and inflation protection. But not all farmland is created equal. Discover the unique advantages of investing in farmland within the Mid-South region of the United States.

Learn why farmland in the Mid-South, covering parts of Tennessee, Mississippi, Arkansas, Missouri, Louisiana, and Kentucky, is regarded as one of the most reliable agricultural investment opportunities in the United States. LandFund's farmland investment experts examine the region’s unique market fundamentals, including abundant groundwater, diverse soil types, and crop flexibility.

Farmland Investments Potential

What makes farmland in the Mid-South a stable and reliable investment?

Mid-South farmland is incredibly resilient, and LandFund Partners believes it provides unique strengths over other farmland regions in the United States. The Mid-South market contains over $100bn of row crop farmland and presents what we view as one of the best investment opportunities in the asset class.

Plentiful Ground Water

The geographical region in which LandFund invests stretches across six states and is the largest alluvial aquifer in North America, covering over 70,000 square miles. The Mississippi, White, and Arkansas Rivers feed the Alluvial, and other aquifers located deeper underneath it provide an additional water supply.

The Mississippi Embayment Aquifer System (MEAS) extends from southern Illinois to the Gulf of Mexico. Lying below the Alluvial Aquifer, the MEAS contains the Memphis Sand Aquifer, the Sparta Sand Aquifer, and several other minor aquifers. At current rates of use and recharge, these aquifers together contain hundreds of years of water.

As climate volatility and extreme weather events intensify, the importance of this unique natural resource is expected to grow. 92% of the SEF farmland is irrigated, which is an exceptionally high percentage. In addition to the region’s abundant groundwater resources, the SEF irrigation infrastructure significantly mitigates risks of hot and dry weather and long-term climate change, which we believe helps our farm operators rely on more consistent crop yields.

Regional Presence

Farmland ownership and management are intensely regional businesses that require intimate knowledge of a farm area and its operators.

LFP has a vertically integrated farm management team permanently residing in the region. Our farm managers conduct regular site visits with tenant farmers, work closely with farmers on planting and regenerative farming plans, source deals, continue to network for off-market land purchases, build new farmer relationships, and build up LFP’s presence in the region.

This hands-on approach is a different model compared to other farmland managers that often outsource property management responsibilities. LFP’s farm management team is essential to its operation and we believe our track record is a testament to the important contribution they make to our team.

Crop Diversity

LFP owns row crop farmland capable of growing over 10 different crop types. This provides our farmer tenants with many options to generate optimal crop type revenue and maintain healthy crop rotations each growing season. Generally, the majority of our farms are planted in cotton, soybeans, rice, and corn. Our farm management team oversees the tenants and is involved in the crop planting decision each season.

What makes Mid-South farmland particularly valuable for long-term investors?

We believe that row crop farmland in our target region provides the most attractive risk-adjusted returns in the entire farmland sector. It offers a significant price discount, more groundwater resources, and more crop diversity compared to Midwest farmland and other regions.

How does the region’s soil quality contribute to farmland productivity and returns?

The Mid-South is known for its high-quality soil types. The region contains dozens of different soil types, ranging from silty loam soils with high nutrient content that percolate water rapidly to heavier clay soils that are excellent for retaining water for rice production. The variability of soil types across the portfolio is nearly evenly distributed across silty loams and clays.

Risk & Stability of Investing in Farmland

How does farmland investment compare to traditional stock market investments in terms of volatility and risk?

Farmland investment offers a more stable and predictable alternative to traditional stock market investments, with significantly lower volatility and risk.

Additionally, farmland provides steady income through cash rents and long-term appreciation. As a scarce, inflation-resistant, and tangible asset, it serves as a hedge against inflation and economic uncertainty, making it an attractive option for investors seeking to reduce portfolio risk while maintaining consistent growth.

Farmland Investments: Revenue & Returns

Which crops are usually grown in Mid-South farmland, and how do they impact investment returns?

The primary crops grown in the Mid-South are corn, soybeans, rice, cotton, and wheat. The large number of crops able to be grown gives our farmer tenants many options to generate optimal crop type revenue and maintain healthy crop rotations each growing season, contributing to both rental rates and land appreciation over time.

Sustainability & Future Growth

How does farmland investment support responsible land stewardship?

LFP is committed to land stewardship and has achieved 100% adoption of at least one regenerative farming practice on each farm property. These practices are a suite of nature based solutions that work to heal and restore the environment over time, improve soil health, promote long-term stewardship of the land and preserve the environment for future generations. These practices further promote soil health, efficient irrigation, and crop rotation strategies to preserve farmland quality. 

LandFund Partners is committed to working together with farmers to ensure the land remains productive for future generations, balancing economic returns with ecological responsibility.

Farmland Investments: The Long-Term Value

Mid-South farmland stands out as a compelling opportunity within the alternative investment space. With its rich groundwater reserves, crop diversity, and fertile soil, the region offers both consistency and scalability, making it attractive to long-term investors.

Supported by a deeply rooted regional presence and active farm management, LandFund Partners showcases how strategic farmland investment can deliver strong, risk-adjusted returns while promoting sustainability and responsible land stewardship. The large number of crops able to be grown gives LFP farmer tenants many options to generate optimal crop type revenue and maintain healthy crop rotations each growing season, contributing to both rental rates and land appreciation over time.

To learn more and explore farmland investing, contact [email protected].

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