What agribusiness is and how it fits into the real estate world

The term agribusiness refers to the entire agricultural supply chain that connects productive land with post-harvest processes, logistics, packaging and distribution, all the way to commercialization and long-term commercial agreements.

It consists of a set of physical assets and contracts that, unlike traditional real estate, generates returns both from land appreciation and from operational cash flows. In the most recent sector reports, Southern Europe emerges as an area with ideal pedoclimatic conditions (soil and climate) and know-how for high-value crops such as olive, almond, citrus, vine and kiwi. In these contexts, crop diversification and access to mature markets reduce volatility and improve the bankability of projects.

From the perspective of an investor or real estate operator, this asset class is therefore configured as a hybrid between physical assets (land, plants, post-harvest infrastructure, that is, facilities and structures that make it possible to manage, preserve, process and enhance agricultural products after harvesting) and operational flows linked to agricultural production.

In other words, the investment is not limited to land but extends into the supply chain, with the possibility of generating recurring revenues and appreciation of the agricultural capital. Unlike traditional real estate asset classes – offices, retail, residential – agribusiness adds a productive dimension tied to global demand for food and agricultural raw materials.

In our role as a full service provider in real estate with a strong focus on innovation and sustainability, integrated agriculture represents a diversification opportunity consistent with our vision. It positions itself as a credible alternative to traditional assets.

Why agribusiness is an interesting asset class

The relevance of agribusiness for institutional investors and real estate operators is based on several pillars.

First, global demand. Population growth, dietary changes in emerging countries and urbanization are driving the increase in global agricultural production: according to several studies, it will be necessary to increase it by over 20–25% in the coming years. This trend puts pressure on land and water resources and, in suitable areas, creates a favorable context for long-term investments.

Second, the tangible nature of agricultural land, especially when irrigated or equipped with post-harvest infrastructure, offers characteristics that are less correlated with traditional real estate cycles, making it a valuable diversification tool in an investment portfolio.

Lastly, the push toward innovation and sustainability makes agribusiness compatible with ESG requirements and with investors’ expectations for future-proof asset classes. In Italy, the Foodtech and Agritech markets are growing: in 2023 alone, the food-agritech segment recorded investments of around €167 million.

For all these reasons, bringing agribusiness within the scope of a real estate platform means capturing an opportunity that combines real production, territorial enhancement, technology and service.

Why only a few real estate operators in Italy manage it today

Although the potential is evident, many real estate operators in Italy still do not fully consider agribusiness, for several specific reasons.

On one hand, agriculture requires skills that differ from traditional real estate: agronomists, agricultural managers, post-harvest operations, production cycles and sales. In Italy, the figure of the professional “farm manager,” capable of combining agronomy and business, is still not widespread.

On the other hand, the fragmented nature of land ownership in many areas makes it difficult to aggregate parcels into operationally significant units—a key requirement for attracting institutional investors.

Moreover, the contractual structure is more complex: assets require infrastructure, post-harvest lines, off-take agreements and logistical capabilities—elements that do not typically belong to the traditional real estate know-how.

Regulatory and environmental aspects—water rights, access to incentives, climate change, technology—require specialist analysis: it is not enough to assess square meters or rental values; one must evaluate yields per hectare, soil quality, irrigation infrastructure and certifications.

This gap creates a barrier to entry. Finally, the historical liquidity of Italian agricultural land is not comparable to that of more traditional real estate classes: for investors accustomed to more standardized horizons, this profile requires a shift in mindset.

Italian agribusiness case studies

Italy is already seeing the emergence of experiences demonstrating that agribusiness can be managed professionally and at scale, even when starting from traditional contexts.

In this perspective, Morning Capital looks to this frontier as a potential component of its value proposition, with the goal of being a key player in a regenerative, technological and sustainable real estate ecosystem.

In a central region of the country, a large agricultural enterprise has organized its land in contiguous plots and adopted a rotation of crops—cereals, legumes and forage—integrated with modern mechanical infrastructure and efficient irrigation systems. This model shows how land size, continuity of management and operational efficiency can transform an agricultural area into a project suitable for institutional investors.

Another significant case is found in Lazio, where a company specializing in fruit production has integrated cultivation with packaging, storage and delivery to a single buyer through a dedicated agreement. The project involved approximately one hundred hectares, advanced irrigation systems and product-selection facilities within the same production site. This integration between cultivation and logistics makes the asset more transparent and appealing to professional capital.

In the North-East, in the wine sector, there is a property that chose to operate within a highly recognized denomination, investing in the winery and establishing grape-supply agreements that ensure income and visibility. The association with strong brands, export opportunities and co-management with supply-chain operators creates a mix of land, production and market positioning that underpins agribusiness as a strategic asset.

These experiences are not isolated cases; they show that Italy has the areas and opportunities for agribusiness to evolve beyond traditional family farming and gain structure, scale and professionalism.

For those operating in real estate and investment, the key lies in identifying properties that offer the right combination of suitable crop conditions, functional infrastructure, competitive positioning and a consolidated commercial supply chain.

Agribusiness: the Morning Capital vision

For Morning Capital, agribusiness can represent a natural extension of our service offering: our mission is to manage complex real estate portfolios, integrate digital services and generate value through innovative strategies.

We envision targeted acquisitions of land, in collaboration with selected agricultural operators, equipping the asset with post-harvest infrastructure, digital traceability platforms and off-take agreements to ensure stable cash flows. Not just “land to cultivate,” but infrastructural projects in the agri-industrial sphere featuring reporting, governance and KPIs comparable to those of a core-plus real estate fund.

Innovation becomes an integral part of this vision: from precision farming to IoT sensors, from food-traceability systems to new agrovoltaic solutions, in which the land produces both food and clean energy. Technologies that transform the agricultural asset into an engine of sustainable value.

Our positioning as a società benefit enables us to focus on the territory, landscape regeneration and the enhancement of local communities: investing in agribusiness means aligning economic, environmental and social objectives.

The capital of the future does not arise solely from structures but from fertile land, water and technology—resources that generate value and opportunity. It is in this direction that Morning Capital looks to agribusiness, as a natural extension of a regenerative, technological and sustainable real estate approach.

Reference sources on AgriBusiness

• Agribusiness in Italia: la nuova frontiera di investimento, CBRE Italy
• Agriculture and finance: a match to make in Italy, SDA Bocconi
• The rise of agri-foodtech in Italy, Protein Report
• AgriTech Italy 2025: Agricultural Revolution with Data Science and Digital Innovation, DMBI Consultants