Farmland’s Inflation Hedge Is Uneven—but Real

Kempen argues the shift toward structurally higher inflation strengthens the long-term case for farmland, even if short-term operating pressures can be painful. 

• Near term, margins can be squeezed by higher energy, fertiliser and labour costs.
• Over time, land values, rents and crop pricing tend to adjust upward with inflation.
• Permanent crops such as olives, citrus and nuts may offer stronger long-duration pricing resilience than annual row crops.
• Geographic diversification across North America, Southern Europe and Australasia is positioned to reduce reliance on any single inflation regime.

Inflation does not hit farmland in one straight line. But scarce productive land has a habit of repricing eventually.