Investment in farmland can enhance an investor’s overall return on their portfolio and provides a number of positive characteristics.
- Portfolio diversification since farmland is not correlated with stocks and bonds
- Farmland values have historically increased and outperformed many other asset classes
- Farmland generates consistent annual cash returns with the potential for long term asset appreciation
- Generally a good protection against inflation
- Historically less volatility and risk when compared to stocks and bonds
- Positive worldwide trends supporting farmland values
- Technology improvements enhancing grain yields, production efficiencies and land values
- Farmland is not susceptible to economic depreciation