TrendWatch: Farmland

Transcript

Kirk Maag
Partner, Agribusiness & Timber

I'm Kirk Mogg, I'm an agribusiness and timber attorney at Stoel Rives in Portland, Oregon.

Foreign investment in U.S. farmland: who’s buying, and what’s changing?

Recently, there's been increased attention placed on foreign investment in farmland and timberland in the United States. There's increased concern about China owning and operating farmland and timberland in the United States. And that's prompted both legislative efforts at the federal and state level to address reporting requirements so that there's more information about who owns property where and potential restrictions on who can own that kind of property.

Farmland is a buyer’s market—are you ready to move?

One trend that's impacting farmland investing in 2025 is we've seen lower commodity prices for a lot of different commodities over the past year. And that's led some folks to want to exit the markets. That really creates an opportunity for buyers in the market. At the same time, folks looking to exit a farmland investment should be looking to increase the potential value of their sale and they can do that by providing more information to buyers so that buyers aren't having to dig around as much to do due diligence on that potential acquisition.

In farmland deals, does quality still win 

When it comes to farmland investing in a buyer's market, quality always wins. And that really means that you've got to highlight why your property is a high-quality investment. And you do that by making sure that sellers have easy access to as much information about the property as possible. Because as seller, you should know as much about the property as anyone and make sure that the buyer has access to that same information too.

Market barriers or market openings—which side are you on?

One potential barrier to entry is really the cost of due diligence, the cost of investigating the asset. And to get ahead of that, it's about putting the right team in place to have consultants, a team, including your internal team, put together to be most efficient in figuring out which opportunities to pursue and which to pass on.

Regulatory shifts: will agribusiness sink or swim? 

With the new Trump administration coming into office, most expect there will be some changes in potential rollback of certain federal environmental protections. At the same time, what you may see in certain states is a ramp up of regulation, a ramp up of enforcement. With this constantly changing landscape, it's important to stay ahead of it. And the folks on our team are constantly monitoring and watching that to make sure that we're on top of the changes both at the state and federal level.

Renewable energy & farmland: smart bet or risky move?

Over the past several years, we've seen a huge increase in the amount of renewable energy development on farmland and timberland. There's probably going to be some uncertainty on that in the near term because federal permitting, in many cases, has been paused. At the same time, there have also been potential changes in the amount of federal investment in those types of projects so that continues to be an evolving landscape that we're helping clients navigate.