This TIAA Center for Farmland Research publication examines the relationship between inflation and farmland returns through time and across differing periods of inflationary pressure from 1970 to present. Farmland is shown to be positively related to inflation and to maintain a reasonably stable, though proportional spread to consumer-based measures of inflation. Various measures of return to farmland, and to the period and location are considered with the results demonstrating the robustness of the relationship. Alternative holding periods are also examined with the result strengthening with aggregation and length of holding period. Finally, various alternative investment classes are also compared to provide portfolio context and to demonstrate the financial performance of farmland as an asset class.
Illinois Farm Management Handbook