Nuveen, already one of the world's largest investors in agricultural property, has launched a private farmland real estate investment trust targeting $3 billion in capital from accredited investors.
The new REIT follows five straight years of rising U.S. farmland values, though the growth rate has started to slow, federal government figures show. Nuveen, in a filing in the past week with the Securities and Exchange Commission, cited rising food demand from global population growth as an investment driver.
The firm expects improved farming technology to boost yields and land values as the amount of U.S. farmland shrinks.
"Supply of new land brought into production is limited," Nuveen said in its filing. "Urban development continues to consume quality farmland, potentially benefiting remaining agricultural properties."
Nuveen Farmland REIT intends to invest primarily in leased crop-producing farmland across the United States, the filing said, while targeting water systems and storage facilities. Nuveen structured the REIT as a nonlisted offering, with shares to be traded monthly at prices based on the net asset value rather than on public exchanges.
The Chicago-based firm plans to acquire an initial farmland portfolio from a subsidiary of its parent company, the Teachers Insurance and Annuity Association of America, following the first closing of fundraising. An external appraisal is expected to determine the purchase price.
Nuveen's farmland investment arm, Nuveen Natural Capital, managed $13.1 billion across 3 million acres globally as of year-end 2024. The company declined to comment to CoStar News.
The REIT plans to focus on row crop farms, including those growing corn, soybeans, wheat and cotton. These annual crops provide income stability through flexible planting decisions, the company said. Permanent crops are another target: Nuveen has invested in tree nuts, citrus, avocados and wine grapes, mainly in California's Central Valley.
Farm values rise
Cropland averaged $5,830 per acre in 2025, up 4.7% from 2024, according to the 2025 Land Values Summary released last month by the U.S. Department of Agriculture's National Agricultural Statistics Service. The increase marks the fifth consecutive annual rise in farmland values but represents a slowing pace of appreciation compared to previous years.
Farmland values vary significantly by state, with higher values in the Corn Belt states including Iowa, Illinois and Indiana due to more productive land and proximity to urban areas, according to Purdue University. Land that moves out of agricultural production and into other, typically higher value, uses tends to sell at a substantial premium to farmland in agricultural production, even the most productive lands.
Nuveen is the first major institutional investor to launch a nonlisted REIT dedicated to farmland investment, according to nontraded REIT data from Stanger Investment Banking.
There are currently two publicly traded farmland REITs in the United States: Farmland Partners, with a market capitalization of about $480 million, and Gladstone Land, with a capitalization of about $330 million.
Farmland Partners has been actively selling land to reduce debt and repurchase what it considers to be undervalued stock, a strategy that analysts view as a way to return value to shareholders. This has led to a significant decrease in total debt and a rise in net income, which nearly doubled from $31.7 million in 2023 to $61.5 million in 2024.
Gladstone Land is notable for its focus on high-value permanent crops such as fruits, vegetables and nuts, which analysts believe are less risky than row crops. The stock has been trading at about $9 a share but has been as high as $14.21 in the past year.
TIAA manages $1.3 trillion in assets across 32 countries. The pension investment firm oversees $300 billion in alternative assets, including real estate and farmland.