Investors Flock to Farmland as a Hedge Against Inflation

Investors Flock to Farmland as a Hedge Against Inflation
A combine drives over stalks of soft red winter wheat during the harvest on a farm in Dixon, Ill. on July 16, 2013. Jim Young/Reuters
Nicholas Dolinger
Updated:

Investors in the United States are rapidly buying farmland, seeking to use agricultural properties as a hedge against inflation in their portfolios as food prices reach record highs.

Agricultural land value has risen by as much as 30 percent in the past year, as rampant price inflation drives many investors to seek out reliable, relatively stable assets such as farmland in order to hedge their fortunes against the entropic effect of inflation. This new wave of investment may also be attributable to rising demand for food, as food prices reach new highs, opening the door for higher production.