Improving

the

Efficient

Frontier

of

Mixed

Asset

Portfolios

with

Farmland

in

Negative

and

Positive

Stock/

Bond

Correlation

Regimes

Volatile macro conditions and shifting stock–bond correlations have made traditional diversification less reliable, prompting institutional allocators to reassess how real assets may complement multi-asset portfolios. As highlighted in the modelling within this paper, Canadian row-crop farmland offers characteristics, such as low volatility and historically low correlations to public markets, that may provide diversification benefits across varying economic regimes.

The scenarios analyzed, one stagflationary and one stable, show how farmland may contribute to portfolio efficiency in different ways. In stagflationary environments, where equities and bonds often move together, farmland’s negative correlations in the model help reintroduce diversification. In stable conditions, farmland’s historically steady profile may support higher risk-adjusted outcomes by moderating volatility and offering a differentiated source of real-asset returns.

Overall, the findings suggest that farmland may serve as a strategic complement within institutional portfolios, with potential to add resilience whether stock–bond correlations remain negative or shift into positive territory. View Full Report