Why Farmland With Centuries of Water Is the Ultimate Scarce Asset | John Farris of LandFund Partners on Super El Niño, Food Security, and the Sources of Alpha in Farmland

Farmland represents a critical, underappreciated real asset driven by surging global protein demand and a shrinking supply of arable, irrigated land. Global food stockpiles have declined from 110 to 70 days, heightening vulnerability to climate disruptions like the current Super El Nino. John Farris, founder of LandFund Partners, highlights the strategic advantage of the Mississippi alluvial aquifer, which offers a 300-year water supply compared to the water-stressed regions of the Midwest and California. Regenerative farming practices, including mandatory cover cropping, significantly reduce input costs and enhance long-term soil productivity. Furthermore, government-backed price floors provide essential stability for large-scale operations. As a portfolio component, row crop farmland offers unique diversification benefits due to its negative correlation with traditional financial markets, serving as a hedge against volatility while providing stable, long-term returns.