Your Farmland Investment Manager
Achieve Stable Growth Through Economic Cycles
Farmland has low volatility as compared to most other asset classes. It provides stability for investors, especially during adverse market conditions. The NCREIF farmland index hasn’t had a negative year in the past three decades.
Why Invest in Farmland?Diversify Your Portfolio
Farmland's uncorrelated returns compared to traditional asset classes such as stocks and bonds offer welcome diversification, especially during stock market downturns.
Hedge Against Inflation
Farmland is a natural hedge against inflation, more-so than stocks, bonds, and even gold. Historically, the value of US farmland has been about 70% correlated with the CPI.
Grow Your Wealth
Farmland has demonstrated strong absolute returns over the past several decades. It averaged ~11% total annual returns (income + price appreciation) from 1992 to 2021.
Farmland: A Superior Asset Class
Farmland’s historically low-volatility and lack of correlation with other asset classes make it an exceptionally strong diversification tool. This has driven institutions to significantly increase their investments in farmland, a largely untapped $10T global market.
Traditional Portfolio
7.19%average annual total returns
- Bonds
- Stocks
Standard Deviation10.53%Sharpe Ratio0.44Adding Only Farmland
7.72%average annual total returns
- Farmland
- Bonds
- Stocks
Standard Deviation8.92%Sharpe Ratio0.57Adding Farmland & Real Estate
7.68%average annual total returns
- Farmland
- Real Estate
- Bonds
- Stocks
Standard Deviation8.50%Sharpe Ratio0.60
White Paper: Introduction to Farmland Investing
Farmland is one of the least understood alternative investment opportunities due to historical constraints in the market. In this paper, we seek to provide a general understanding of farmland as an asset class and highlight the various financial characteristics that make it a compelling addition to investors’ portfolios.