Stoel Rives Agribusiness Partners Kirk Maag and Todd Friedman Lead Discussion on Agribusiness Transactions at 2025 Land Investment Expo

Press Release

Stoel Rives, an AmLaw 200 law firm, facilitated a breakout session discussion with industry investment and transaction leaders at the annual Land Investment Expo in Des Moines, Iowa on January 14. The session, “Agribusiness Transactions: 2024 Review and 2025 Preview,” discussed trends in agribusiness transactions in 2024, and what the industry might expect in the year ahead.

The panel was moderated by Stoel Rives partner Kirk Maag, and included partner Todd Friedman, along with Skye Root, founder of Root Agricultural Advisory and Adam Woiblet, president and designated broker of the Agribusiness Trading Group.

Recapping 2024 Agribusiness Transactions

The panelists recapped the 2024 transaction market, noting a lower transaction volume in the agribusiness sector, likely impacted by rising costs and increased operating debt, depressed commodity prices, less availability of capital and the expected market slowdown during an election year. Though the industry overall saw fewer transactions, there was a pickup toward the end of the year as interest rates stabilized.

Foresight into 2025 agribusiness transactions; winning in a buyer’s market

When examining what to expect in the coming year, the panelists agreed that the year is off to an active start, and expect transaction volume to increase. The panelists predicted that the market is shifting to a buyer’s market; value in this market will be placed on the overall quality of assets. Sellers are finding new ways to highlight the quality of their assets, such as including detailed data about production and finances of an operation in order to paint a more complete picture. Access to water remains a critical issue for the agribusiness industry, particularly in the western region of the U.S., and is a key consideration when evaluating assets in transactions.

Now more than ever, it’s important for investors to have a strong team to perform due diligence in connection with a transaction—whether an acquisition, disposition, or financing. This includes having a team with experience to provide insight about local issues, access to resources, information about the operation, and provide a deeper understanding of the business deal. Due diligence must also include analysis of the corporate structure and ownership chain to understand the source of the funding and ensure compliance with anti-corporate farming laws and reporting on foreign ownership of agricultural land.

The panelists anticipate more creative financing deals to increase in 2025, with options like holdbacks and earnouts that help hedge the investment risk, seller financing and leasebacks becoming more popular.

Factors impacting 2025 market and beyond

The panelists concluded with a discussion of the factors impacting the agribusiness industry and transaction flow in 2025 and beyond. Potential policy changes, such as tariffs and immigration policies, pose potential challenges for the industry. The availability of labor is a critical issue for the industry, and the impact of enforcement of immigration policies may lead to a shortage, increased costs overall and difficulties in particular for small operators unable to find labor. Energy policy changes could lead to lower energy costs that will benefit agribusiness operations. Overall, the panelists agreed that the outlook for agribusiness industry investing is positive, and that there may be a more compelling case now than ever for investing in U.S. farmland, particularly as a hedge against inflation.

Maag observed that “it’s evident that interest in agribusiness industry investments is high going into 2025, with buyers and investors looking for high quality assets and opportunities to create differentiation within the market and develop additional revenue streams in connection with farmland assets.”

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