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Ben Gordon: Investing in Farmland - [Making Markets, EP.33]

Making Markets

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Finance Geeks' Fascination with Farmland

Farmland captivates finance geeks due to its economic and finance intricacies, including macroeconomic drivers and cash flows, geopolitical factors, incentive alignment, microeconomics, science, and market efficiency. Farmland offers attractive risk-adjusted returns with stability and low volatility, driven by global land productivity, demand, and government support. Despite its merits, farmland has low institutional ownership due to its fragmented ownership structure and traditional private equity models being unsuitable for the asset class's scale and turnover rate. Innovative approaches by prominent investors like Gates and Buffett have enabled them to capitalize on farmland investments.

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