The Homestead Capital Difference
Homestead manages a diversified portfolio of high quality farmland throughout the U.S. across regions, crops, lease types, farm operators and certain other risk factors. We focus on acquisitions where opportunities for value creation exist through: (i) capital improvements, (ii) improved farm management, (iii) economies of scale, (iv) efficient crop selection and rotation, and (v) customized farm operating strategies.
Our investment approach pairs a bottom-up approach to sourcing and value creation driven by our locally based regional farmland managers with a top-down portfolio construction and risk management framework to ensure proper diversification and an appropriate risk and reward profile at the portfolio level.
We utilize a proprietary software platform for modeling asset returns, taking into account commodity prices, yields, soil quality, climate patterns, and numerous other inputs. This platform enables Homestead to manage concentration risk at the portfolio level and stress test the portfolio against various risk factors.