Francisca Nathalia de Sousa Leite, E. Castro, H. Tateishi
{"title":"Regional impacts of rural credit and rural insurance policies on crop area and productivity: evidence from São Paulo state, Brazil (2008 and 2017)","authors":"Francisca Nathalia de Sousa Leite, E. Castro, H. Tateishi","doi":"10.1108/afr-02-2022-0024","DOIUrl":"https://doi.org/10.1108/afr-02-2022-0024","url":null,"abstract":"PurposeConstrained input use and lower productivity of rural establishments may be associated with restricted or concentrated access to financial resources, especially in developing countries. Meanwhile, agricultural activity entails risks associated with the volatility of net cash flows and external events, which may discourage riskier but higher return investments (e.g. technology). As rural credit can alleviate the former, and rural insurance may help alleviate the latter, the combination of both policies might endorse each other. The purpose of this study is to analyze the use of rural credit and rural insurance policies with respect to productivity and crop area, in São Paulo state, Brazil, using farmer's microdata from two surveys realized in 2007/08 and 2016/17.Design/methodology/approachThis study uses propensity score matching and the entropy balance approaches in a complementary way. This study compared three policy treatments – rural credit, rural insurance and both policies combined, against establishments that received neither one. The analysis considered sugarcane, grain and grape crops separately and employed farmer's microdata. Moreover, the analysis was stratified into two categories: establishments owned by family farmers and those that did not.FindingsRural credit policy is related to higher productivity and larger cultivated area for grains and only to larger area for grape crops in the last analyzed period (2016/17). Rural insurance, as a unique policy or combined with credit, is related to higher productivity and cultivated areas, for all analyzed crops, only in the second period (2016/17), as the policy became more accessible to farmers. Heterogeneity regarding crops and farmers might influence the effectiveness of these policies. Despite rural insurance being related to a better performance regarding the outcome variables, it still reaches a small share of farmers, especially when combined with credit.Originality/valueMany studies about the effectiveness of rural credit in Brazil have been conducted throughout the years, while there have been fewer studies regarding rural insurance since it became an important policy in the mid-2000s. However, few studies have conducted an analysis comparing its individual and interactive influences, with such level of disaggregation, on a farm-level database, considering the heterogeneity of the data and the different categories of farmers.","PeriodicalId":46748,"journal":{"name":"Agricultural Finance Review","volume":" ","pages":""},"PeriodicalIF":1.6,"publicationDate":"2022-12-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42699129","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Xuan Liu, G. V. van Kooten, E. Gerbrandt, Jun Duan
{"title":"Prospects for weather-indexed insurance for blueberry growers","authors":"Xuan Liu, G. V. van Kooten, E. Gerbrandt, Jun Duan","doi":"10.1108/afr-05-2022-0059","DOIUrl":"https://doi.org/10.1108/afr-05-2022-0059","url":null,"abstract":"PurposeThe authors investigate whether an index-based weather insurance (WII) product can complement or replace existing traditional crop yield insurance for mitigating farmers' financial risks, with an application to blueberry growers in British Columbia (BC).Design/methodology/approachA hybrid model combining expected utility (EU) and prospect values is developed to analyse farmers' demand for WII.FindingsWhile weather data are used to investigate supply elements, a hybrid model combining EU theory and prospect theory (PT) is developed to analyse farmers' demand for WII. On the supply side, a quality index is constructed and the relationship between the quality index and key weather parameters is quantified using a partial least squares structural model. The authors then model weather parameters via time-series analysis and statistical distributions to provide reasonable estimates for calculating actuarially sound insurance premiums for a rainfall indexed, insurance product. This model indicates that decreases in the proportion of a blueberry grower's total revenue and revenue volatility will decrease the possibility that they participate in WII. At the same time, an increase in the value loss aversion coefficient and WII's basis risk further leads to less demand for WII. In short, a grower may decide not to participate in WII at an actuarially fair premium due to the combined effects of the above factors. Overall, while the supply analysis enables us to demonstrate that WII can potentially help in mitigating farmers' financial risks, it turns out that, on the demand side, blueberry growers are unwilling to pay for such a product without large government subsidies.Originality/valueThe authors argue that the demand for insurance may be affected by the level and the volatility of a berry grower's total revenue. Hence, the authors propose a hybrid expression that assumes a farmer seeks to maximize the total utility function to capture the rational and intuitive parts of a farmer's decision-making process. The EU represents rationality and the prospect value represents the intuitive component. Meanwhile, the authors investigate the possibility of using key weather parameters to construct a berry quality index – one that could be applied to other agricultural areas for studying the relationship between weather conditions and product quality.","PeriodicalId":46748,"journal":{"name":"Agricultural Finance Review","volume":" ","pages":""},"PeriodicalIF":1.6,"publicationDate":"2022-12-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47329583","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
A. Akpa, Romanus Osabohien, J. Ashraf, Mamdouh Abdulaziz Saleh Al-Faryan
{"title":"Financial inclusion and post-harvest losses in West African economic and Monetary Union","authors":"A. Akpa, Romanus Osabohien, J. Ashraf, Mamdouh Abdulaziz Saleh Al-Faryan","doi":"10.1108/afr-06-2022-0076","DOIUrl":"https://doi.org/10.1108/afr-06-2022-0076","url":null,"abstract":"PurposePost-harvest losses are major problems faced by farmers and this is due to their poor access to credit considered as a low rate of financial inclusion. This paper aims at analysing the relationship between financial inclusion and post-harvest losses in the West African Economic and Monetary Union (WAEMU).Design/methodology/approachThe study engaged data from the Food and Agriculture Organisation [FAO] for post-harvest losses. Also, it engaged data from Banque Centrale des Etats de l’Afrique de l’Ouest [BCEAO] for financial inclusion over the period 2000 to 2020. The study applied the Instrumental Variable Two-Stage Least Squares (IV-2SLS) and Generalised Method of Moments (GMM) to test the robustness of the results.FindingsThe results show that financial inclusion reduces post-harvest losses by 1.2%. Therefore, given this result, policies to improve farmers’ access to credit by increasing the rate of financial inclusion, is a necessary condition for the reduction of post-harvest losses.Social implicationsSocial implication of this study is that it contributes to the policy debate on the enhancement of food security by reducing post-harvest losses. The reduction in post-harvest losses and food security, will improve the welfare and livelihood of the society. This aims for the actualization of sustainable development goal of food and nutrition security (SDG-2).Originality/valueThe findings imply that efforts by governments and policymakers to improve farmers’ access to credit by increasing the rate of financial inclusion would reduce post-harvest losses in West African countries that are members of the WAEMU. Also, investment in education, ICT and building warehouse for farmers will help in reducing post-harvest losses. It implies that educated farmers have more opportunities to be financially inclusive than those who are not educated.","PeriodicalId":46748,"journal":{"name":"Agricultural Finance Review","volume":" ","pages":""},"PeriodicalIF":1.6,"publicationDate":"2022-12-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43302265","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Identifying farmers' preferences for types of credit and its market structure in rural Benin using the conjoint analysis approach","authors":"E. S. Sonehekpon, R. Fiamohe","doi":"10.1108/afr-07-2022-0081","DOIUrl":"https://doi.org/10.1108/afr-07-2022-0081","url":null,"abstract":"PurposeThis study analyzes farmers' preferences for agricultural credit and its market structure in rural Benin using the conjoint analysis approach.Design/methodology/approachThe data used come from primary sources collected from 228 randomly selected farmers. The conjoint analysis approach was used to produce the results. The bias associated with the heteroscedasticity of the error terms was fixed using the weighted least squares estimation method. Agricultural credit markets were segmented using the Calinski algorithm.FindingsThe study results reveal that farmers prefer a long-term agricultural credit with a low interest rate received via mobile banking. The interaction between a type of credit with collateral and a low interest rate is positively correlated with farmers' credit demand. The authors also found that agricultural credit markets are heterogeneous because of the heterogeneity in farmers' credit demand. This result has led to three different rural credit market segments identified in the selected study's sites. The market share simulation reveals a significant market share for the type of credit preferred by farmers in two segments.Research limitations/implicationsThe proven evidence from this study can guide the development of appropriate agricultural financial products that promote financial inclusion among farmers in rural Benin. More specifically, agricultural financial policies that promote digital long-term credit with low interest rate and appropriate guarantee mechanisms can promote financial inclusion among farmers and reduce the problem of asymmetric information in agricultural credit market. The study also calls for the promotion of differentiated policies across the three identified segments in order to positively impact the welfare of all farmers.Practical implicationsThe use of agricultural financial products that include digital long-term credit with low interest rate and appropriate guarantee mechanisms promote financial inclusion and reduce asymmetric information problems in agricultural credit markets in rural Benin.Social implicationsThe promotion of long-term digital and cheap credit improves farmers household's wellbeing in rural Benin.Originality/valueThis study contributes to a better understanding of the structure of rural credit markets. It also reveals the most preferred characteristics of rural credit profiles by farmers. Besides, it validates the importance of the use of guarantee as an appropriate mechanism which minimizes the problem of asymmetric information between financial agents and farmers.","PeriodicalId":46748,"journal":{"name":"Agricultural Finance Review","volume":" ","pages":""},"PeriodicalIF":1.6,"publicationDate":"2022-12-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44561485","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Madeeha Omer Lakhani, Sana Tauseef, Wajid Ali Chattha
{"title":"Assessing the financial sustainability of a rural livestock practice: a case of Pakistan","authors":"Madeeha Omer Lakhani, Sana Tauseef, Wajid Ali Chattha","doi":"10.1108/afr-05-2022-0062","DOIUrl":"https://doi.org/10.1108/afr-05-2022-0062","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This research aims to investigate the feasibility of formalizing an old, informal livestock financing practice in Pakistan known as Adhyara through assessment of estimated return and risk.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>The hedonic pricing model was employed to estimate the impact of breed, weight, pregnancy status and milk yield on cattle sales price, and appropriate estimates were used for monetization. The stochastic simulation was then used to estimate the distribution of capital returns for investors in the informal livestock practice. Primary data on animal prices and attributes were obtained from a survey of dairy farms and data on terms of Adhyara deal were obtained from a survey of nomad pastoralists and current investors. In-depth interviews were also conducted with different stakeholders to get insights into this informal livestock practice and social elements.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>Results from the hedonic model show that the animal prices in Pakistan are highly variable depending on the animal attributes of breed, weight, milk yield and pregnancy status with an average value of PKR (Pakistani Rupee) 191,771 and standard deviation of PKR 66,762. Our stochastic simulation reveals mean estimated real return of 24 per cent. This return is competitive considering local and international investment alternatives.</p><!--/ Abstract__block -->\u0000<h3>Social implications</h3>\u0000<p>The research identifies a lucrative and market competitive investment option and thus opens the window of opportunity to introduce grass root entrepreneurship in the livestock sector. Recommended formalization of this traditional livestock practice can boost investment creating substantial potential for the uplift of local communities and simultaneously contribute towards the goals of poverty eradication, food provision and employment generation for women.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This research lays out the possibility of formalizing the practice of a traditional livestock financing in an agricultural country.</p><!--/ Abstract__block -->","PeriodicalId":46748,"journal":{"name":"Agricultural Finance Review","volume":"167 ","pages":""},"PeriodicalIF":1.6,"publicationDate":"2022-11-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138518960","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
C. Zinnanti, A. Coletta, Michele Torrigiani, S. Severini
{"title":"Simulating risk management strategies for specialized farming systems: the potential impact of the EU income stabilization tool","authors":"C. Zinnanti, A. Coletta, Michele Torrigiani, S. Severini","doi":"10.1108/afr-11-2021-0146","DOIUrl":"https://doi.org/10.1108/afr-11-2021-0146","url":null,"abstract":"PurposeThis study assesses the potential impact of the European Income Stabilization Tool (IST – a whole farm income risk management [RM] tool) within a farm cooperative specializing in vineyards and operating in a small area of production. The authors assess the conditions under which IST could improve the well-being of the associated farmers and, at the same time, improve financial sustainability. Financial aspects are of particular relevance since the characteristics of the cooperative cause the management of the tool to become potentially risky.Design/methodology/approachThe analysis relies on a balanced panel dataset to report the production and economic characteristics of individual associated farms. This is the basis for simulating the implementation of the IST as described in the current European regulation. The expected utility approach is then used to assess the potential impact on farmers' well-being under different levels of risk aversion and premiums. The analysis of the IST annual cash flow allows for an accurate assessment of its financial sustainability.FindingsThe results suggest that the IST can improve farmers' well-being under plausible levels of risk aversion and premiums, making most farmers willing to support its implementation. Furthermore, the tool could be financially sustainable even if implemented in a specialized and geographically concentrated group of farms. In addition, the results suggest that the use of strategies such as the IST could help cope with negative annual balances by treating the financial sustainability of the fund.Originality/valueThe analysis adds to previous research on the IST by accounting for farmers' risk aversion. Furthermore, it is the first analysis that simulates the implementation of this tool in a sector-specific and concentrated group of farms. The results provide useful evidence for those subjects planning to implement the IST in small and specialized farming systems.","PeriodicalId":46748,"journal":{"name":"Agricultural Finance Review","volume":" ","pages":""},"PeriodicalIF":1.6,"publicationDate":"2022-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44144742","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Maximilian Humpesch, S. Seifert, A. Balmann, S. Hüttel
{"title":"How does tenancy affect farmland prices? Effects of lease status, lease term and buyer type","authors":"Maximilian Humpesch, S. Seifert, A. Balmann, S. Hüttel","doi":"10.1108/afr-03-2022-0038","DOIUrl":"https://doi.org/10.1108/afr-03-2022-0038","url":null,"abstract":"PurposeLease contracts at the time of sale influence buyers' expectations about future returns of farmland ownership and may thus contribute to price dispersion. This paper investigates the conjecture that existing land lease contracts influence buyers' and sellers' costs of being information deficient and thus their bargaining position, their expectation formation about future returns, and thus ultimately the farmland price.Design/methodology/approachThe authors link different levels of information, search, and bargaining costs to three buyer types and their land use intentions. Relying on a rich dataset of farmland transactions in the German Federal State of Saxony-Anhalt from 2014 to 2019, the authors use a hedonic pricing model to investigate five hypotheses applying multivariate one-sided tests.FindingsThe authors find buyer-specific effects related to lease status and lease term of a lot. Tenant buyers pay less than non-farmer buyers for leased lots, whereas non-tenant farmers pay a markup. While prices decrease for all buyer groups with an increasing lease term, this effect is the strongest for non-tenant farmer buyers. This study’s results suggest that an existing lease contract impacts buyers' costs of being information deficient, their bargaining positions and expectation formation, and ultimately the price discovery process.Originality/valueTo the authors’ knowledge, this is the first study that decomposes the effects of tenancy on farmland prices by buyer type and lease term. The study provides insights into price dispersion for identical characteristics of farmland and explains why empirical studies have found mixed or no empirical evidence that lease contracts influence the price discovery process.","PeriodicalId":46748,"journal":{"name":"Agricultural Finance Review","volume":" ","pages":""},"PeriodicalIF":1.6,"publicationDate":"2022-09-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43593248","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Determinants of institutional agricultural credit access and its linkage with farmer satisfaction in India: a moderated-mediation analysis","authors":"Shiladitya Dey, P. Singh, Megha Deepak Mhaskar","doi":"10.1108/afr-02-2022-0028","DOIUrl":"https://doi.org/10.1108/afr-02-2022-0028","url":null,"abstract":"PurposeThe study assesses the relationship between institutional credit access and farmer satisfaction using contextual mediating and moderating variables. This study identifies various socioeconomic, service features and service quality determinants impacting institutional credit access.Design/methodology/approachThe authors used the stratified random sampling method and selected 512 farmers from 40 villages in Maharashtra, India. Initially, the study employed probit regression analysis to identify the credit adoption determinants. Subsequently, the relationship between institutional credit and farmer satisfaction is identified through moderated-mediation analysis using the Statistical Package for the Social Sciences and Analysis of a Moment Structures (SPSS - AMOS model).FindingsProbit model's results suggest that socioeconomic variables like education and bank distance; service quality variables like prompt service and employee behavior; and service characteristics variables like the interest rate, loan sanction time, repayment period, and documents for loan application significantly affect institutional credit adoption across the smallholders. Subsequently, the results of the moderating-mediation analysis show that working capital, perceived value and risk perception partially mediate the association between credit adoption and farmer satisfaction. The mediated effects are further moderated by farm advisory services and financial knowledge and skills.Research limitations/implicationsThe study is restricted in opportunity due to primary data, and it considers only farmers' perspectives to measure service quality and service features as constraints for institutional credit access.Practical implicationsThe government, nongovernment organizations, civil societies and private institutions should provide sufficient financial knowledge and training to the farmers via extension services to utilize the borrowed capital effectively to bring economic welfare and mental satisfaction.Originality/valueThe existing literature rarely considered banking service quality and service features (demand side) variables as determinants of credit access. Further, the study brings novelty in examining how the capital management cognitive factors of the formal credit adopters influence the relationship between credit access and satisfaction.","PeriodicalId":46748,"journal":{"name":"Agricultural Finance Review","volume":" ","pages":""},"PeriodicalIF":1.6,"publicationDate":"2022-08-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44346836","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Livestock risk protection subsidies changes on producer premiums","authors":"C. Boyer, A. Griffith","doi":"10.1108/afr-05-2022-0066","DOIUrl":"https://doi.org/10.1108/afr-05-2022-0066","url":null,"abstract":"PurposeLivestock Risk Protection (LRP) insurance can reduce losses from price declines for cattle producers, but LRP adoptions has been limited. In 2019 and 2020, LRP subsidies were increased to lower the cost, but it is unclear how much these changes lowered the cost. The objective of this research was to estimate the impact of the subsidy increase on the cost of LRP for feeder and fed cattle by month and for various insurance period lengths and levels.Design/methodology/approachThe authors collected United States LRP offering data from 2017 to 2021. The authors estimated separate generalized least squares regression for feeder cattle and fed cattle with producer premium as the dependent variable. Independent variables were dummy variables for coverage level, insurance period, month and year as well as dummy variables in commodity years 2019 and 2020 when the LRP subsidy was increased.FindingsThe authors found the subsidy increases did reduce the cost of LRP policies for feeder and fed cattle LRP policies. Producer premiums for feeder cattle LRP polices have declined between $1.41 to $1.90 per cwt and $0.95 to $1.56 per cwt for fed cattle LRP policies depending on the coverage level. Results indicate these subsidy increases did lower the LRP premium costs to producers.Originality/valueResults show policy implications from the subsidy increases and will be informative to producers when exploring the cost of LRP. This study extends the literature by estimating the reduction in subsidy costs while considering total premiums changed.","PeriodicalId":46748,"journal":{"name":"Agricultural Finance Review","volume":" ","pages":""},"PeriodicalIF":1.6,"publicationDate":"2022-08-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45411850","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Relationship of public farmland and timberland REITs with their private equity counterparts and selected asset classes","authors":"S. Baral, B. Mei","doi":"10.1108/afr-04-2022-0046","DOIUrl":"https://doi.org/10.1108/afr-04-2022-0046","url":null,"abstract":"PurposeThe purpose of this study is to examine the return sensitivity of public farmland and timberland real estate investment trusts (REITs) to private-equity farmland, timberland and real estate, long-term corporate bonds and large- and small-cap stocks. The study also examines time-dependent contributions of selected asset classes to farmland and timberland REIT volatility.Design/methodology/approachThe authors use a multi-factor asset pricing model under a seemingly unrelated regression framework to evaluate farmland and timberland REIT returns, and a state-space model with the Kalman filter to evaluate the time-dependent contributors of farmland and timberland REIT volatility. The authors first perform orthogonalized regressions to obtain pure independent factors, and then decompose volatility into individual asset components.FindingsSignificant loadings on financial assets are found for both farmland and timberland REITs, suggesting that they are generally driven by some common state variables. Large-cap stocks are found to be the major contributor of farmland and timberland REIT volatility, despite some differing patterns over time.Originality/valueEmpirical analysis of farmland REIT is very scarce. The authors compare the risk-return characteristics of farmland and timberland REITs under a state-space framework with the Kalman filter. This study can improve the understanding of the roles of farmland and timberland REITs in a multi-asset portfolio.","PeriodicalId":46748,"journal":{"name":"Agricultural Finance Review","volume":" ","pages":""},"PeriodicalIF":1.6,"publicationDate":"2022-08-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45498503","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}