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Farmland versus Alternative Investments Before and After the 2008 Financial Crisis

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  • Kuethe, Todd H.
  • Walsh, Nicholas
  • Ifft, Jennifer

Abstract

The years following the 2008 financial crisis have been marked by general economic malaise, yet the period has been relatively prosperous for the agricultural sector. As a result, many investors have recognized the potential for farmland as an investment alternative. This study compares farmland’s risk and return to those of competing investment alternatives. Farmland is shown to be an attractive investment alternative with relatively high mean returns, low variability, low correlation with financial markets, and strength relative to other investments following the 2008 financial crisis.

Suggested Citation

  • Kuethe, Todd H. & Walsh, Nicholas & Ifft, Jennifer, 2013. "Farmland versus Alternative Investments Before and After the 2008 Financial Crisis," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2013, pages 1-12, June.
    • Handle: RePEc:ags:jasfmr:161492
    DOI: 10.22004/ag.econ.161492
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    References listed on IDEAS

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    1. John G. Dillard & Todd H. Kuethe & Craig Dobbins & Michael Boehlje & Raymond J. G. M. Florax, 2013. "The Impacts of the Tax-Deferred Exchange Provision on Farm Real Estate Values," Land Economics, University of Wisconsin Press, vol. 89(3), pages 479-489.
    2. Noland, Kevin & Norvell, Jonathan & Paulson, Nicholas D. & Schnitkey, Gary D., 2011. "The Role of Farmland in an Investment Portfolio: Analysis of Illinois Endowment Farms," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2011, pages 1-42, June.
    3. Charles Towe & Constant I. Tra, 2013. "Vegetable Spirits and Energy Policy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(1), pages 1-16.
    4. Ifft, Jennifer & Nickerson, Cynthia J. & Kuethe, Todd H. & You, Chengxia, 2012. "Potential Farm-Level Effects of Eliminating Direct Payments," Economic Information Bulletin 139809, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Choi, Jiseon & Jodlowski, Margaret C., 2023. "Not for sale: the role of farmland as a portfolio investment and its impact on supply in the market," 2023 Annual Meeting, July 23-25, Washington D.C. 335557, Agricultural and Applied Economics Association.
    2. Cai, Xiaowei & Cosgrove, Austin & Paul, Jacob, 2018. "Assessing the Investment Prospect of Farmland: Evidence from California," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2018.

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