Pathways - Originally published in March 2022
*For investment professional and institutional investor use only. Not for use with the public.
Rising demand for protein-rich foods and declining-supply of arable land per capita are likely to drive farmland values over the long run.
Agriculture can contribute to climate solutions through carbon sequestration, creating a substantial decarbonisation and revenue opportunity for farmlands.
Australian agriculture has historically delivered equity-like returns at bond-like volatility.
Our analysis of historical data, and the tight link between inflation and farm revenues, suggests the asset class may be well placed to act as an inflation hedge.
Adding agriculture to a pre-existing portfolio of global equities, bonds, and property could increase portfolio returns and lower portfolio volatility.
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