Farmland as an Inflation Hedge

  • Jack H. Rubens
  • James R. Webb
Part of the Research Issues in Real Estate book series (RIRE, volume 2)


As inflation declined in the late 1980s from the double-digit rates of previous years, investor concerns of rising price levels diminished. However, viewed from the longer historical perspective of post-WWI performance, inflation has been at significant levels since the late 1960s. A major concern of investors is that their wealth portfolio provide positive real rates of return. During periods of inflation, some investiments increase in value more quickly than others, while some decrease in value.


Real Estate Stock Return Consumer Price Index Return Series Real Estate Investment 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Fama, E. and G. Schwert. “Asset Returns and Inflation”. Jounral of Financial Economics 5 (November 1977), 115–46.CrossRefGoogle Scholar
  2. Fogler, R., M.R. Granito, and L.R. Smith. “A Theoretical Analysis of Real Estate Returns”. Journal of Finance 40 (July 1985), 711–721.CrossRefGoogle Scholar
  3. Gultekin, N. “Stock Market Returns and Inflation Forecasts”. Journal of Finance 38 (June 1983), 663–74.CrossRefGoogle Scholar
  4. Hadaway, S. and B. Hadaway. “Inflation Protection from Multi-Asset Sector Investments: A Long-Run Examination of Correlation Relationships with Inflation Rates”. Review of Economic and Business Research 16 (Spring 1981), 80–89. Google Scholar
  5. Hartzell, D., J. Heckman, and M. Miles. “Real Estate Returns and Inflation”. American Real Estate and Urban Economics ASsociation Journal 15 (Spring 1987), 617–637. Google Scholar
  6. Ibbotson, R. and L. Siegel. “Real Estate Returns: A Comparison With Other Investments”. American Real Estate and Urban Economics Association Journal 12 (1984), 219–244.CrossRefGoogle Scholar
  7. Ibbotson Associates. Stocks, Bonds, Bills and Inflation: 1989 Yearbook. Chicago: Ibbotson Associates, Inc., 1989. Google Scholar
  8. Irwin, S., D. Forster, and B. Sherrick. “Returns to Farmland Revisited”. American Journal of Agricultural Economics 70 (August 1988), 580–581.CrossRefGoogle Scholar
  9. Jaffe, J. and G. Mandelker. “The ‘Fisher Effect’ for Risky Assets: An Empirical Investigation”. Journal of Finance 31 (May 1976), 447–58.CrossRefGoogle Scholar
  10. Kaplan, H. “Farmland as a Portfolio Investment”. Journal of Portfolio Management 11 (Winter 1985), 73–78. Google Scholar
  11. Kaul, G. “Stock Returns and Inflation: The Role of the Monetary Sector”. Journal of Financial Economics 18 (1987), 253–276.CrossRefGoogle Scholar
  12. Kost, W. “Rates of Return for Farm Real Estate and Common Stock”. American Journal of Agricultural Economics 50 (May 1968), 213–224.CrossRefGoogle Scholar
  13. Mandelker, G. and K. Tandon. “Common Stock Returns, Real Activity, Money and Inflation: Some International Evidence”. Journal of International Money and Finance 4 (June 1985), 267–86.CrossRefGoogle Scholar
  14. Nelson, C. “Inflation and Rates of Return on Common Stock”. Journal of Finance 31 (May 1976), 471–83.CrossRefGoogle Scholar
  15. Peel, D. and P. Pope. “Testing the Fisherian Hypothesis: Some Methodological Issues and Further Evidence for the UK”. Journal of Business, Finance and Accounting 12 (Summer 1985), 297–311. Google Scholar
  16. Reilly, F., R. Marquardt, and D. Price. “Real Estate as an Inflation Hedge”. Review of Economic and Business Research 12 (Spring 1977), 1–19. Google Scholar
  17. Rubens, J., M. Bond, and J. Webb. “The Inflation-Hedging Effectiveness of Real Estate”. Journal of Real Estate Research 4 (Summer 1989), 45–56.Google Scholar
  18. Stulz, R. “Asset Pricing and Expected Inflation”. Journal of Finance 41 (March 1986), 209–24.CrossRefGoogle Scholar
  19. Webb, J. and J. Rubens. “Portfolio Considerations in the Valuation of Real Estate”. American Real Estate and Urban Economics Association Journal 14 (Fall 1986), 465–495. Google Scholar
  20. White, F. and R. Ziemer. “Farm Real Estate Pricing under Risk: An Empirical Investigation”. Southern Economic Journal 49 (July 1982), 71–87.Google Scholar

Copyright information

© Kluwer Academic Publishers 1995

Authors and Affiliations

  • Jack H. Rubens
  • James R. Webb

There are no affiliations available

Personalised recommendations