This publication provides an update on global farmland values and trends and explores high-potential farmland investment regions, considering key factors that bring comparative advantage. We also look at the benefits of growing tree crops and their potential as an investment opportunity
Strong value growth for global farmland
Global farmland: a critical asset class
Long regarded as a stable home for capital and a hedge against inflation, global farmland is gaining prominence as a critical asset class – particularly in regions where macroeconomic stability, political reliability, and favourable geographic conditions support sustained productivity. Interest in the sector continues to grow, driven by the rising demand for climate-resilient assets, food security, and sustainable long-term investment returns.
Within this global landscape, tree crops stand out as a long-term investment opportunity. Crops such as almonds, avocados, pistachios, and olives are attracting increased attention. Tree crops offer long-term cash flows and align with rising consumer demand for nutrient-dense, high-value crops, including plant-based oils, nuts, and tropical fruits. When managed regeneratively with robust mitigation around water use, they can also offer environmental benefits.
This publication examines the current performance of global farmland markets and explores high-potential farmland investment regions, considering key factors that bring comparative advantage, such as the macroeconomic environment, political stability, and farming policy. The report also focuses on the benefits of growing tree crops and their potential as a valuable investment opportunity for long-term returns.
Global farmland performance
The value of global farmland across the world is tracked by Savills Global Farmland Index
Since 2002, our research has shown a consistent global increase in average farmland values, with a compound annual growth rate of 11% during this period. Much of this growth occurred in the five years leading up to the 2008 financial crisis. Average farmland values continued to climb through to 2014, followed by a more moderate growth phase leading up to 2020, when capital appreciation was constrained by the impact of Covid-19. In 2021, however, values rebounded sharply, posting an 18% increase.
Over the past 22 years, farmland has delivered stronger, more stable long-term returns than other asset classes
Nicola Buckingham, Associate Director, Rural Research
Growth has since accelerated, and in 2024, the Savills Global Farmland Index recorded an exceptional annual average increase of 18%, its strongest performance since the notable rise in 2021 (figure 1). South America has been the dominant contributor to this rise, with a combination of increased international attention and currency movements driving this year’s performance.
Figure 2 illustrates the long-term value growth and stability of farmland relative to other asset classes, with farmland significantly outperforming all other commodity benchmarks illustrated. Over the past 22 years, farmland values have shown less volatility and have not recorded the fluctuations seen in other commodities, such as oil between 2013 and 2016 and in gold between 2013 and 2015. This is mainly driven by the fact that farmland is not frequently traded, and landowners tend to make decisions with a long-term outlook. Farmland is also not just a commodity asset. For many, it’s their livelihood, community, and home, and recognising the social dimensions of farmland is essential for responsible investment.
Across the globe
Farmland values worldwide are shaped by a diverse range of factors, including climate and soil quality, macroeconomic conditions, government policy, market accessibility, and investor sentiment. These drivers lead to significant regional disparities in both the pace and pattern of average farmland value growth.
South America
In 2024, South America recorded the strongest growth globally, with farmland values rising by 47%. Argentina and Uruguay reported the strongest value increases during the year. After nearly a decade of declining average farmland values in Argentina, the market began to stabilise in 2022 and accelerated further following the election of Javier Milei in 2023. Fertile soils and an established export infrastructure contribute to South America’s agricultural appeal.
Central Europe
Central Europe showed a 10% increase in average farmland values, with Poland reporting the strongest value growth, supported by a return to power of the pro-business Donald Tusk administration.
North America
Across North America, average farmland values rose steadily by just over 4% during 2024. Canada reported the region’s highest growth, at just over 7%, likely supported by Canadian pension funds’ traditionally favourable view of farmland as an investment class.
Western Europe
In Western Europe, average farmland values rose by just under 4% during 2024, with the market remaining steady. Interestingly, farmland values here are often influenced by factors beyond agricultural productivity, such as urbanisation or interest from lifestyle purchasers. However, as economic growth has slowed, demand for such uses has similarly been weaker. At a country level, government policies vary significantly. In the UK, for example, the current growth agenda is reshaping land-use strategy. There is a drive towards more multifunctional land uses, where agriculture coexists with nature restoration and development.
Australasia
Average farmland values were largely unchanged in 2024, with growth of less than 1%. This lack of movement is partly due to the slight fall in average farmland values in New Zealand. In contrast, average values across Australia recorded a 7% year-on-year increase.
Read the articles within Spotlight: Global Farmland below.
