What Asset Class Is Farmland Considered To Be?

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During times of uncertainty, boring is good.

Perhaps that's why interest in farmland investing has skyrocketed in recent years.

Billionaires like Bill Gates are buying up land left and right.

Farmland is a unique asset to invest in due to the consistency of returns and lower volatility compared to the stock market. But what asset class does farmland fit into?

Invest In Farmland Today!

PlatformMinimumLinkAccredited OnlyInvestments
AcreTrader farmland investing platform$8,000+View InvestmentsYesUS Farmland, Timberland, Vineyards
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Asset Classes

There are 5 major asset classes out there:

  1. Stocks or Equities
  2. Fixed Income Investments
  3. Cash and Equivalents
  4. Futures and Derivatives 
  5. Alternative Assets

Most investors out there have exposure to just a few of these major asset classes.

Farmland isn't the same as your traditional real estate investment either.

When you invest in farmland, you are putting your money into the major asset class known as alternative assets or investments.

Alternative Investments

Many different types of assets fall under this category, including:

  • Artwork
  • Farmland 
  • Wine
  • Antiques
  • Real Estate
  • Private Equity 
  • Venture Capital
  • Commodities
  • Collectibles 

Many experts recommend investing around 15 to 20% of your total portfolio into alternatives. However, most average investors have almost no exposure, aside from their home which most do not consider to even be an investment.

Farmland is truly one of the best ways to get exposure to alternatives.

Over the last few years, it has become easier than ever before to invest. You don't have to go out and buy land yourself or even put on a pair of boots. There are numerous online platforms that allow you to invest in farmland as well as a few farmland REITs.

Farmland historically performs well in inflationary environments, as there is limited farmland to invest in, and food products will always be a vital commodity – especially during periods of high inflation.

With the various drivers of the current global economy being post-pandemic inflation and shifting supply chains, food production and farmland have only become more crucial as an asset.

This might be the perfect time to diversify into alternative investments through farmland!

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