Farmland as
a strategic asset
Expanding the Efficient Frontier through
Permanent Crop Allocation
Traditional Portfolios Carry Uncompensated Risk
Our analysis reveals that the average portfolio sits below the Efficient Frontier. This means investors are carrying more risk than necessary for the expected return.
Traditional assets (equities, bonds, and real estate) move together, especially during market stress. This high correlation concentrates risk without proportional reward.
What single asset can shift this entire curve upward and to the left?
Strategic Integration of Farmland for Optimal Portfolios
The persistent suboptimality of traditional allocations underscores the urgent need for genuinely low-correlation assets.
Farmland, particularly permanent crops, provides this solution, offering superior risk-adjusted returns.
The challenge for wealth managers is no longer whether to include farmland, but how to implement it strategically.
By embracing this strategic approach, investors can effectively expand their Efficient Frontier and achieve a more resilient, risk-adjusted optimal portfolio for the long term.
