Farmland Draws Investor Interest With Inflation Running Hot
- Agriculture asset managers see institutions in search of hedge
- U.S. farmland appreciating at fastest rate since 2014
This article is for subscribers only.
The inflation wave that’s sweeping through the global economy is playing into a investment niche that a small group of people in finance have spent years developing: farmland.
Agricultural land has become attractive to institutional investors and wealthy families in recent years because returns tend to be stable and weakly correlated with other asset classes, according to Purdue University agricultural economist Todd Kuethe. More investors are now seeking it out as a potential hedge against inflation, asset managers say, with consumer prices rising at the fastest pace in decades.