Assessing the Required Risk Premium for North American Farmland Investment

Marvin J. Painter

Journal of the ASFMRA, 2015, vol. 2015, 19

Abstract: In recent years, as North American farmland prices have continued to rise, a number of North American public farmland investment trusts have been formed to offer investors a liquid and marketable farmland investment vehicle. How risky are these farmland REITs? This paper compares the investment risk with other popular investment options such as bonds, stocks, gold, oil and real estate using several well-known and accepted methods of risk analysis, including overall yield variance, CAPM, Value at Risk (VAR), and Drawdown. North American Farmland REIT has less risk than gold, oil, REITs and stock markets.

Keywords: Farm Management; Land Economics/Use; Risk and Uncertainty (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:ags:jasfmr:233857

DOI: 10.22004/ag.econ.233857

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