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Assessing the Required Risk Premium for North American Farmland Investment

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  • Painter, Marvin J.

Abstract

In recent years, as North American farmland prices have continued to rise, a number of North American public farmland investment trusts have been formed to offer investors a liquid and marketable farmland investment vehicle. How risky are these farmland REITs? This paper compares the investment risk with other popular investment options such as bonds, stocks, gold, oil and real estate using several well-known and accepted methods of risk analysis, including overall yield variance, CAPM, Value at Risk (VAR), and Drawdown. North American Farmland REIT has less risk than gold, oil, REITs and stock markets.

Suggested Citation

  • Painter, Marvin J., 2015. "Assessing the Required Risk Premium for North American Farmland Investment," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2015, pages 1-19.
    • Handle: RePEc:ags:jasfmr:233857
    DOI: 10.22004/ag.econ.233857
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    References listed on IDEAS

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