Why invest in farmland? Farmland is a wealth preserving hard asset, offering a relatively stable cash flow. Farmland appreciation and their food & timber product returns correlate positively with inflation. At the same time, farmland is distinctively uncoupled from the typical asset classes of bonds and equities. Demand for food will continue to follow population increases, and the world's preferred superior farmlands are continually diminished by erosion and urban sprawl.
In spite of the economic turmoil and uncertainties around the world, food production and productive land will remain in increasingly higher demand. A growing global population with rising standard of living will continue to increase demand on quality food and all farming production supply.
Farmland continues to show a high correlation with inflation and therefore an important wealth preservation strategy. Despite official and private efforts, the world’s productive, arable lands continue to shrink while farming product demands keep increasing. There is no other asset class with the characteristics of farm and timber land.