While farmland has long been considered a safe-haven investment, the Covid-19 pandemic and a general trend towards environmental, social, and governance (ESG) investing are pushing more institutional investors, particularly pension funds, to look more closely at this alternative asset class.
Two factors are driving this push. First, farmland has performed well in times of crisis exhibiting durable valuations and attractive levels of income, both of which are uncorrelated to competing assets. Second, financial yields from farmland are tied to food prices, which have not been negatively impacted during previous pandemics, and they have been supported by stable supply-demand dynamics to date in the current pandemic.
Farmland piques global investor interest amid pandemic – The Asset