Lessons From the Delta, Part 3: How Investors Are Buying Farmland

Lessons From the Delta continues — this time focusing on how farmland moves from farmers to investors and back again. In Episode 3 of the Purdue Commercial AgCast mini-series, Chad Fiechter and Todd Kuethe speak with Colson Tester of AcreTrader about how farmland investment platforms identify properties, evaluate land values, and structure investments for accredited investors. While farmland has long attracted institutional capital, platforms like AcreTrader are opening the door for retail investors to participate in agricultural land ownership. But farmland investing works differently than most asset classes — deals are often sourced locally, data can be limited, and success depends heavily on working with the farmers operating the land. The conversation explores: • How farmland investment platforms source and evaluate farms • Why buying land at or below market value is critical for long-term returns • How farms are structured as investment offerings for retail investors • Typical hold periods and expected return targets for farmland investments • Why many farmland acquisitions involve sale-leaseback arrangements with operators During the trip, the group also visited one of the first farms AcreTrader acquired in the Mississippi Delta and discussed how leasing structures, irrigation systems, and local production practices influence farmland values in the region. As previous episodes in the series have shown, Delta agriculture operates within a different production system — one heavily dependent on irrigation infrastructure and specialized crop rotations. Those same factors also influence how farmland is evaluated as an investment asset. While the production systems may differ from the Midwest, the strategic questions remain familiar: How should farmland be valued? What drives long-term land appreciation? And how does capital access shape farm growth and business decisions? This episode builds on the earlier conversations in the series and sets up upcoming discussions on irrigation systems, water management, and how those investments influence farm productivity and land values. We’ll also continue sharing video clips and behind-the-scenes footage from the Arkansas trip on our YouTube channel throughout the series. Subscribe to the Purdue Commercial AgCast so you don’t miss upcoming episodes in the Lessons From the Delta series. For more farm management resources, visit: 👉 https://purdue.ag/commercialag Subscribe to the podcast: 👉 https://purdue.ag/agcast Follow us: X: https://twitter.com/PUCommercialAg Facebook: https://www.facebook.com/PUCommercialAg LinkedIn: https://www.linkedin.com/company/center-for-commercial-agriculture