An Examination of Farm Asset Returns

A multi-factor capital asset pricing model is used to examine the return characteristics of physical assets comprising the farm asset portfolio. Physical assets analyzed are: 1) farm real estate; 2) machinery and motor vehicles; 3) crops stored on farm; and 4) livestock and poultry. Results for the years 1950-1990 indicate that unexpected inflation is more appropriate than the more commonly used realized inflation factor; and that the systematic risk component to these asset classes is, in general, low. Further, excess returns measures are significant for farmland, machinery, and crops stores on farm but not for livestock and poultry.


Issue Date:
1994
Publication Type:
Journal Article
DOI and Other Identifiers:
0738-8950 (Other)
PURL Identifier:
http://purl.umn.edu/62342
Published in:
Journal of Agribusiness, Volume 12, Number 1
Page range:
15-25
Total Pages:
21




 Record created 2017-04-01, last modified 2017-08-25

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