Abstract:
Investing in agricultural land is becoming increasingly popular for those seeking stable returns and portfolio diversification. Among the choices, row crop farmland (e.g. wheat, pulses, corn, soybeans) and permanent crop land (e.g., orchards, vineyards) present distinct investment profiles. This paper explores how we believe investing in row crop farmland carries less risk compared to permanent crop land, based on liquidity, depreciation, capital intensity, weather resilience, water dependency and labor intensity.
Introduction:
Understanding the inherent difference between row crop farmland and permanent crop land is essential for risk management. Row crop farmland involves planting annual crops, such as grains, while permanent crop land involves perennial crops like fruit trees or grapevines that last for many years.View Full Report