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Investing In Farmland And Farmland Derivatives, Damilola Stephen Adebayo
Investing In Farmland And Farmland Derivatives, Damilola Stephen Adebayo
LSU Master's Theses
Investing in farmland has evolved from the traditional ownership of farmland for farming to alternatives such as direct farmland purchases for rental income, farmland real estate investment trusts (Farmland REITs), investing in farmland stocks, mutual funds, ETFs, and crowdfunding platforms. This study analyzes the dynamic relationship between physical farmland values, farmland derivative prices, and the S&P 500 using annual data from 1970 to 2021. Cointegration methods are used to analyze dynamics and the capital asset pricing model (CAPM) and Sharpe ratios to measure risk-return properties of farmland assets. It is found that real farmland values, derivatives prices, and the S&P …