Macro Hive Conversations With Bilal Hafeez cover image

Artem Milinchuk on Alternative Assets, Farmland and Inflation Hedges

Macro Hive Conversations With Bilal Hafeez

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Is There a Negative Hit to Farm Land?

Rates of farm land will have absolutely negative effect from the rates going up. The debt to acted ratier is only 13 %, which i thnk it is a sub optimal way to capitalize what is a very leverageable acid class. While that's actually the effactoris waigh less than almost any other acid class. But let me then kind of take a flip side here. The reason that interest rates are rising is because inflation is rising. And so that farmat actually should be pacing in trie which it has. Though you sought o have that, yes, mechanically, rising intrest rates will decrease the value of land but it's only because it's increased by quite

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