Barron’s published an article on how at a time when stock prices are slumping and inflation is soaring, farmland looks to be an appealing investment. It is a real asset that performs well in inflationary environments, delivers stable returns over long holding periods, and exhibits low correlation to financial assets. What’s more, farmland. U.S. farmland has posted an average annual return of 11.2% for the 25-year period that ended in March 2021. The S&P 500’s return is much more variable. Historically, its volatility has been more than twice that of farmland. Senior research fellow Joseph Glauber expects farm prices to remain strong. “I suspect when we see the USDA numbers come out later this summer, there is still another big, strong increase in land values.”
Farmland is an inflation hedge. How to invest. (Barron’s)
July 28, 2022