Updated
Updated · IPE Reference Hub · Aug 19
PREA Analyzes 30 Years of US Farmland Resilience and Risks
Updated
Updated · IPE Reference Hub · Aug 19

PREA Analyzes 30 Years of US Farmland Resilience and Risks

1 articles · Updated · IPE Reference Hub · Aug 19

Summary

  • PREA’s latest article says US farmland has remained a durable real-asset allocation since the early 1990s, holding up through multiple macroeconomic shocks.
  • That resilience rests on capital preservation, relatively steady returns and reliable cash flows tied to essential-goods demand, constrained land supply and broader inflation-linked real-asset characteristics.
  • The analysis also frames farmland as a cyclical investment with risks that still need managing, even as its long-term appeal has strengthened across market cycles.
  • PREA places the asset class within institutional portfolios as investors keep weighing defensive income and diversification against evolving market and operating risks.

Insights

Why do investors keep pouring money into US farmland when Treasury bonds currently offer significantly higher returns than agricultural yields?
With farm profits shrinking and bankruptcies rising, what hidden factors are secretly preventing a massive crash in US agricultural land values?
As water scarcity reshapes the landscape, could the historic resilience of American farmland suddenly collapse in vulnerable regions?