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Farmland Prices Resilient to Economic Cycles

“Farmland has historically proven to be uncorrelated to economic cycles, experiences substantially less volatility compared with broad market indexes and traditional asset classes, and has exhibited value durability over time. During the 2008 financial crisis for example, the most comparable crisis to the current one, the impact was felt across most sectors of the global economy. In contrast, this period was relatively profitable for the agricultural sector, resulting in strong direct-to-consumer profitability and higher agricultural land values. To put it into perspective, in the four-year period before and the four-year period after the 2008 financial crisis, the asset class delivered consistent positive returns, outperforming U.S. Treasuries, the Dow Jones Industrial Average, and the S&P 500 index.”

PION Online – Farmland in Economic Cycles

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