Publications

- November 2011: Vol. 23 No. 10

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Patience Pays Off: Investing in Timberland and Agriculture Generates Positive Returns … If You Can Wait a While

by Julia Feiner

If you’re looking for long-term stability and diversification in your portfolio, you might want to look down at the ground … or up at the trees. Agriculture and timberland investing have produced solid returns for many an investor over the years, and it doesn’t look like the trend is going to stop any time soon. In addition, agriculture and timber investments have low to little correlation with other asset classes, helping to diversify an investment portfolio, and they also can provide a hedge against inflation. But buyers beware: with these property types, patience is a required virtue and investors typically need to wait a few years to capture their desired return.

POSITIVE OUTLOOK
Over the long term, the outlook for both agriculture and timberland investments is quite positive. The United Nations expects world population to increase from 6 billion today to 9 billion by 2050. Global agriculture output must rise 70 percent by 20

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