With the stock markets going down and the crypto space bleeding red, it is terrifying for investors to add anything to their portfolios. Don’t panic. Diversifying your portfolio investments in such challenging times is essential. One of the best ways to do this is to invest in farmland. Let us discuss which are the best farmland ETF and what their benefits are.
A Farmland ETF is an Exchange Traded Fund where the funds are being invested in farming companies. These companies produce commodities such as grains, crops, and similar products. They generally invest in both various commodities and a single commodity as well. Let us have a look at their benefits.
People mainly invest in stocks, mutual funds, bonds, gold, or even real estate when it comes to making gains from their capital. Due to this trend, whenever the markets go down, everyone suffers heavily like the present time. With farmland investments, you can make bets on the best farmland ETF. They give you much diversity and even protect your capital when the markets go south.
Protection Against Inflation
The inflation in the US has risen the most in 2021-22 since decades. This inflation is a very bad sign for ordinary people as it highly affects their pockets. With farmland investments, you can get much protection against inflation. The bank interest rates are almost 0 now, and the stock markets do not seem to revive anytime soon. All of this can be hedged through farmland investing. You should ideally aim to match your capital with the rising prices of the goods and services. This match gives a hedge against the rising inflation. Not to mention, the best farmland ETF always offers you this advantage.
Most people are worried and tensed about their investments going down. While some people would suggest mutual funds, and some go for FDs. However, most of these investments are still a bit risky; if not, they give minimal returns. This reason is why investing in a stable source that gives a decent return is mandatory. According to the decade-old data and history, these farmland investments have been proven to be very safe and stable.
With the population rising and farms getting cut down for highways and buildings, the US is removing its farmlands. Yet, it houses 10% of the world’s farms. Still, the need for food is not going to end anytime soon. Like gold, farms are also scarce as you can’t produce it. Thus, it is a very scarce investment, and you can earn decent gains from it.
If you want a platform to invest in farmlands, you can go for FarmTogether. With a guaranteed scope of return and high-yielding performance, FarmTogether aims to maximize your capital through safe and secure ways of investment. Check out this one of the best farmland ETFs for your investing needs.