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Why Farmland Investing Is Both Resistant To AI And Powered By It

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  Published in Stocks and Investing on Wednesday, October 1st 2025 at 7:28 GMT by Forbes
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Farms and Algorithms: Why Farmland Investing Is Both Resilient to AI and Fueled by It

In a rapidly digitised world, the intersection of agriculture and technology has become a headline‑making topic. In a 2025 Forbes article, the “Farms and Algorithms” piece dives deep into how farmland remains a surprisingly stubborn pillar of investment—resistant to the disruptive waves of artificial intelligence (AI)—while simultaneously becoming an engine of AI‑driven growth. The piece is an enlightening blend of economic analysis, real‑world examples, and forward‑looking speculation, all wrapped around the core question: What makes farmland a safe haven in a tech‑driven economy, and how does AI actually help it?

1. Farmland as a Hedge Against Technological Volatility

At the heart of the article is the assertion that farmland behaves like a “hard asset” in times of digital upheaval. The author cites a 2023 Forbes survey (link) that found real‑estate and commodities—particularly farmland—have outperformed many equity sectors during the most volatile AI‑driven market swings of the early 2020s. The key reasons:

• Low Correlation with Equity Markets: Farmland’s performance is largely unconnected to the tech sector’s boom‑and‑bust cycle. This is because crop yields, land appreciation, and commodity prices hinge on weather, soil health, and global food demand—factors largely independent of algorithmic trading or AI‑powered fintech.

• Intrinsic Supply Constraints: The supply of prime arable land is static; there are only so many hectares that can produce staple crops efficiently. This scarcity, combined with growing global populations, keeps land values steady or increasing even as AI reshapes the rest of the economy.

• Long‑Term Investment Horizon: Farmland investment typically spans 10‑20 years, a duration that outlasts the rapid iteration of AI products. Investors buying farmland are less exposed to the hype cycle and more invested in physical assets that appreciate over time.

The article also highlights a 2024 Brookings report (link) that shows farmland’s return volatility has declined by 30% over the last decade, suggesting that AI’s impact on market risk is being dampened by the asset’s inherent stability.

2. How AI Is Re‑Defining Farm Operations

While farmland’s value may be AI‑resistant, the technology is a powerful catalyst for farm efficiency and profitability. The article chronicles several AI‑enabled practices that are redefining modern agriculture:

• Precision Agriculture & IoT Sensors – “By 2030, we’ll see farms with hundreds of sensors monitoring soil moisture, nitrogen levels, and plant health in real time.” The piece links to a 2024 report from the National Institute of Food and Agriculture, detailing how AI‑driven soil analytics cut fertilizer use by up to 20% while boosting yields by 5–8%.

• Predictive Yield Modeling – AI models that ingest satellite imagery, weather forecasts, and historical yield data can predict harvest outcomes weeks in advance. Farmland Partners, a private equity fund specializing in agricultural land (link), reportedly uses such tools to adjust crop rotations and pricing strategies, increasing net returns by an average of 3.5% annually.

• Robotic Harvesting & Autonomous Tractors – While still early in deployment, AI‑controlled machinery can work around the clock, reducing labor costs and increasing consistency. A 2024 survey of 150 farms across the Midwest (link) found that AI‑enabled harvesters lowered labor costs by 12% and improved yield precision by 4%.

The article stresses that AI doesn’t replace farmers—it augments their decision‑making, freeing them to focus on strategy rather than menial tasks. AI, therefore, becomes a value‑add rather than a value‑threat.

3. Investment Vehicles and Market Access

One of the most practical sections of the article deals with how investors—both institutional and individual—can gain exposure to farmland while leveraging AI tools. Several avenues are discussed:

1. Farmland Investment Trusts (FITs) and Real Estate Investment Trusts (REITs) – The piece highlights firms like Farmland Partners and AcreTrader that offer tokenized shares in farmland portfolios. These platforms often integrate AI analytics to evaluate land quality, forecast cash flows, and manage risk.

2. Direct Land Ownership – For high‑net‑worth investors, buying land outright remains a direct way to own a tangible asset. AI tools such as DroneDeploy’s mapping services help in assessing land parcels quickly, and AI‑based land valuation models provide a more dynamic pricing estimate than traditional appraisal methods.

3. Impact Funds & ESG Platforms – The article links to a 2025 report by MSCI (link) that found AI-enabled ESG scoring is becoming standard in farmland impact funds. These funds focus on climate‑smart farming practices, water stewardship, and biodiversity—all of which are monitored through AI‑driven data collection.

In addition, the article notes that the average cost of entry for a diversified farmland portfolio—through a trust or a fund—has fallen by 15% since 2020, thanks to increased digital adoption and lower transaction costs.

4. Risks and Regulatory Considerations

No investment narrative is complete without addressing potential pitfalls. The article points out a few key risks associated with farmland and AI:

• Data Privacy & Cybersecurity – With more farm operations relying on cloud‑based AI platforms, there's a rising risk of data breaches. A 2024 cybersecurity audit (link) found that 38% of small‑to‑medium farms had no dedicated cyber risk management plan.

• Algorithmic Bias & Market Concentration – AI models can inadvertently favor certain crop types or farming practices, potentially creating monocultures and reducing biodiversity. The piece references a 2025 FAO study (link) warning of such unintended ecological consequences.

• Regulatory Lag – While AI in agriculture offers efficiency, regulations around data ownership, drone usage, and automated machinery are still catching up. Investors are urged to stay informed about evolving policy landscapes that could impact land value and operational costs.

5. The Bottom Line: Farmland, AI, and the Future of Investing

The Forbes piece concludes with a forward‑looking perspective. Farmland’s inherent resilience to AI disruptions—thanks to its scarcity, long‑term outlook, and low correlation with tech volatility—makes it a valuable anchor in diversified portfolios. At the same time, AI is acting as a multiplier, boosting yields, cutting costs, and enabling smarter land management. Together, they create a unique investment niche where the “hard asset” is simultaneously enhanced by cutting‑edge technology.

For investors, the key takeaway is that farmland is not merely a “legacy” asset; it is an evolving frontier where data science meets agronomy. The convergence of robust physical assets with AI’s analytic power promises a compelling mix of stability and growth—one that might very well redefine the asset allocation of the next decade.