Behind the Markets Podcast Harvesting Alpha from Dirt: From Cornfields to Data Centers
Sep 2, 2025
Brandon Zick, CIO of Ceres Partners, guides a fascinating exploration of farmland investments in Indiana. He discusses the unique blend of agriculture and renewable energy, emphasizing opportunities in solar and wind on farmland. The conversation dives into how tariffs impact farmer profitability and the significant potential in innovative energy solutions, such as transforming waste into renewable energy. Zick also outlines the evolving landscape of farmland investing, revealing insights from recent property acquisitions and the shift towards institutional investment.
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Auction Win On The Road
- Brandon and Jeremy drove across Indiana and attended a public auction where Ceres bought one 180-acre track under reserve price.
- The purchase reinforced Ceres' on-the-ground sourcing and disciplined bidding approach.
Farmland As 'Gold With A Coupon'
- Perry Veith founded Ceres on the idea that farmland is "gold with a coupon," offering inflation protection plus income.
- Ceres launched in 2007 and grew from $30M to $1.85B by exploiting that thesis through active acquisition.
Limited Turnover, Big Opportunity
- The U.S. farm market is about $3 trillion and only ~1% of farmland turns over annually, so capacity to deploy capital is limited.
- Institutional ownership is small (~3%), leaving large opportunity for active managers to source deals.