Farmland IRR.

Agricultural land investment calculator measures returns from farmland leased to farmers. 500k farmland at 4% lease rate + 3% appreciation over 15 years = 7.1% IRR. Lower volatility than equities, inflation-protected, generational wealth transfer asset. Bill Gates is largest private farmland owner.

Example: 500,000 farmland investment. 4% annual lease rate (20,000/year). 3% annual appreciation. 15-year hold. Total lease income: 300,000. Final land value: 779,000. Total return: 579,000. MOIC 2.16x. IRR 7.0%. Steady cash flow + appreciation - perfect inflation hedge.

Agricultural land characteristics: (1) Strong inflation hedge (food prices rise with inflation). (2) Low correlation with equities (~0.1). (3) Limited supply (no new land created). (4) Tax advantages (capital gains, inheritance benefits in many jurisdictions). (5) Stable lease income (5-10 year farmer leases typical). Disadvantages: illiquid, geographic concentration risk, weather dependency, large minimums (100k+). Access: Strutt & Parker, Knight Frank land agents. access: Farmland REITs (Gladstone Land LAND, Farmland Partners FPI).

Quick example

With land purchase price of 500,000 and annual lease rate of 4% (plus annual land appreciation of 3% and hold period of 15 years), the result is 5.26%. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.

Which inputs matter most

You enter Land Purchase Price, Annual Lease Rate %, Annual Land Appreciation %, and Hold Period (years). Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.

What's happening under the hood

Total return = cumulative lease income + land appreciation. IRR from MOIC. The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.

Using this well

Treat the output as one point on a wider map. Run it three times — a pessimistic case, a central case, and a stretch case — and plan against the pessimistic one. That habit alone separates people who stick with an investment plan from those who bail at the first wobble.

What this doesn't capture

Steady-rate math ignores real-world volatility. Actual returns are lumpy; sequence-of-returns risk matters most in drawdown; fees and taxes drag on compound growth; and behaviour changes in drawdowns can reduce outcomes below the projection. Treat the number as one scenario, not a forecast.