How Do Commodity Prices Affect Farmland Returns? (Video)

February 19, 2020
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This article was edited to meet broker-dealer compliance guidelines in April of 2023.

Video Transcript

There is another question here about the impact of low commodity prices and does that drive down financial returns and yields?

We touched on that a little bit earlier in the webinar, but as a whole we expect rents to be stable. We don't expect them to be up next year where commodity prices are here and there.

There may be a few places in the US, a few we call really hot markets, like some in Iowa particularly, where rent is already too high and you may see some corrections there.

But as a whole, we expect stability and inversely if commodity prices do improve, we expect rents to improve because we've been flatish for years now in the data.

The above content is not intended to be a comparison between products, but is intended for general, educational and informational purposes only. Any performance noted is historical and there is no guarantee any trends will continue. All investing involves risks, including the complete loss of principal. Diversification does not guarantee a profit or protect against loss in a declining market. It is important for each investor to review their investment objectives, risk tolerance, tax liability and liquidity needs before investing. Investment vehicles have differences in fee structure, risk factors and objectives. Investments are considered speculative, involve a high degree of risk and therefore are not suitable for all investors.

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