As Inflation Looms, Here’s How Farmland Can Protect Investors

Visible Signs Of Inflation You don’t need to be an economist to see inflation picking up all around us. Prices of commodities from lumber to copper are climbing higher every day. Gas is already creeping up, and we have not yet begun the summer driving season. Grocery stores are reporting higher food prices. Although the Fed claims the inflation is “transitory,” we have no idea of the magnitude of inflation expected.

As part of prudent asset allocation, our income-producing assets should include assets that act as a hedge against inflation.

Gold has been used for millennia. However, it does not provide any return for holding it. It costs money to store it.

We have already covered bitcoin and gold  in the past. Bitcoin, although promising, does not have a long investment history.

Inflation has different effects on different assets. Commodities, for example, typically rise in value when retail prices rise.  It makes them excellent investments during inflationary periods. Bonds typically provide a refuge against stocks.  However, with low interest rates, most investors won’t find much upside from a bond-heavy portfolio.

It’s easy to get started in farmland investing with FarmTogether. FarmTogether is a technology-enabled, all-in-one platform that enables accredited investors to browse properties, review due diligence materials, and directly invest in top farmland opportunities across the United States. 

While we may not agree with everything he says, there are nine decades of wisdom buried in Warren Buffett’s quotes.

Investors can start by creating a free FarmTogether account. Through your online portal, you’ll get a sampling of the tools investors can access, including all due diligence documents, project financials, proposed deal structures, investment documents including operating agreements, private placement memorandum, subscription agreements, and more.

Farmland Investing and Inflation: The Bottom Line The conditions for an extended period of inflation are correct, based on current market conditions, supply chain issues, and consumer demand.  Each of these factors could be enough to create an inflationary period on its own; combining all three makes it almost unavoidable.

That’s why investors must hedge against inflation’s ill effects on stocks and investment funds. Usually, bonds would be an effective hedging tool.  Unless interest rates increase, it’s unlikely that bonds will have the same appeal they did during other periods of increased inflation.

This is why investors need to look beyond the stock market for effective hedging strategies.

Farmland investing offers advantages against inflation that investors can’t find elsewhere.

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