Farmland typically was up double-digits when other assets were down
Farmland is an ideal diversifier for investors because it performs well when other assets and the broader economy are at their worst, says Artem Milinchuk, Founder and Head of Strategy at FarmTogether.
In today's intricate economic landscape, we as investors are navigating through challenges posed by high interest rates, inflation, and market uncertainty. Despite some positive economic signals, the lingering shadow of geopolitical tensions and predicted interest rate hikes raises concerns about the possibility of an economic slowdown. In light of these circumstances, the importance of diversifying our portfolios and protecting our capital is more pronounced than ever. Looking back, historical data reveals that farmland investment has outperformed U.S. stocks and bonds, offering consistent double-digit returns spanning several decades, along with minimal volatility and a decreasing supply. The ongoing market conditions, including the series of interest rate hikes and inflationary pressures, have cast an impact on traditional investments like stocks and bonds. Consequently, market instability and economic apprehensions have resulted in restricted equity returns, prompting some experts to caution about potential further declines in the stock market ahead.
FarmTogether's Bespoke and Tenancy in Common products are also eligible for 1031 Exchange, which allows investors to swap one investment property with farmland, thereby deferring realization of capital gains and federal tax liabilities.
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