Gold has been a reliable investment for all of the United States’ 250 years and beyond, but farmland is just as well-known an investment and has nothing to do with precious metals. Investing in farmland located in the United States has its own hurdles, but there are profitable outcomes that investors can benefit from. Is there enough evidence that one investment is better than the other?
A Short History of Farmland and Gold Investments
Investing in farmland in the United States started in the 1600s. During this time, farmland was a primary store of wealth, power, social status, a source of income, and was used as a political instrument. Farmland in colonial America was owned by the rich or family farmers; during this period, landowners often substituted their real estate for money in trade and to settle debts between parties. Later in American history, institutional farmland ownership became more common, and modern farmland finance structures were built because of colonial practice.
Today, one can invest in farmland in a few ways. One could invest in companies that own and manage income-producing farmland or buy the land and lease it to a farmer for rent. To be more hands-on, investors can buy and manage the farm themselves.
Gold was scarce in colonial America. Its scarcity established how gold functioned as an investment, monetary reference, and store of value. Gold entered the colonies primarily through British and Spanish coinage, as well as Portuguese and Dutch trade coinage. Gold rarely circulated in everyday colonial transactions because, among other reasons, its value was too high for small purchases. At that time, gold served largely as a āreserve asset,ā and other colonial coinages were in higher circulation as a result. Gold-backed financial institutions were a hot topic after the Revolutionary War and are still discussed to this day.
After Executive Order 6102 was put in place in 1933, and after the end of the Gold Standard in 1971, gold increasingly became a liquid, tradable security in modern markets. Gold prices became market-determined, and their volatility increased, making gold attractive for trading and hedging. To this day, gold is used for barter, trade, and investments around the world.
Comparing Both Assets
Price Trends of Gold and Farmland
Farmland has historically shown a consistent upward trend in value, with minor bumps along the way. The 1980s Farm Crisis was a severe agricultural recession. Decisions made in the 1970s dominoed to a result of numerous rural bank failures. Significant policy changes came through as a result. Fortunately, the need for farmland is always high due to population growth and food demand.
More than food can be produced on farmland. Biofuel production, also known as the process of converting organic matter into usable energy, is also carried out on farmland. Farmland has shown a consistent upward trend in value because these resources are produced there.
The price trend of farmland rose slowly in 2025. U.S. farmland now averages $4,350 per acre; up 4.3 % from 2024 levels (1.9 % after inflation). Over the past five years (2019ā2024), the compound annual growth rate (CAGR) increased. Its performance reflects market cycles and the farmlandās physical yields, alongside persistent supply constraints.
Near the end of 2025, gold hit $4,300. With this spot price, it would take approximately 11.63 ounces of gold to equate to $50,000 USD. In May 2020, it would have taken about 28.38 ounces of gold to equate $50,000 when one ounce during that month was about $1,761. Goldās purchasing power has remained robust, maintaining its role as a reliable store of wealth. Gold is able to rise in value while the power of the USD stalls and falls behind.
Returns, Appreciation, and Volatility
Because demand for agricultural products remains steady and land supply in the United States is limited, farmland investments tend to show low volatility. Farmland values have also declined less than other investments during periods of economic downturn, such as the COVID-19 recession. Interest rates have increased in recent years, but historically remain below the levels of the early 1980s. U.S. farmland values are at or near record highs, supported by strong demand from farmers and investors, limited land availability, and steady returns from cash rent and commodity production.
The NCREIF (National Council of Real Estate Investment Fiduciaries) is a quarterly composite measure that tracks the investment performance of a broad pool of privately owned farmland in the United States acquired for investment purposes. This source serves as a benchmark for U.S. institutional farmland investors. The NCREIF Farmland Property Index reported that in the third quarter of 2025, income was listed at -0.24% and appreciation was listed at 0.76%. This index return shows that, on average, operating income did not fully cover expenses during the quarter as the value of farmland increased at that point in time.
Goldās return on investment primarily comes from price appreciation. From 2008 to 2025, gold has delivered an average annual return of 8% when measured in USD. During times of global uncertainty, such as the 2008 financial crisis, the COVID-19 pandemic, or periods of high inflation, investors have often turned to gold, driving prices higher.
Risk of Investing in Farmland or Gold
Where you invest matters: farmland with reliable water and nearby infrastructure typically commands higher prices. Some farms are less profitable due to oversupply. Oversupply of key crops, along with changing global demand and trade challenges, has historically lowered export volumes and pressured land values.
Weather is a factor no investor can control, and events like floods and wildfires have caused over $21 billion in crop and rangeland losses across the United States, posing meaningful risks to farmland and agricultural production. Farmland also needs to be managed, and if itās not managed properly, investors will see depreciation in their asset.
While gold canāt be affected by the weather, the price of gold is dependent on multiple factors, like the strength of the USD, economic stress, and more. Keeping your gold in a vault in your home or overseas is a good idea, but it depends on how much gold you own. Paying for gold storage can be risky if there is no insurance, but many gold dealers like AMPEX offer first-class insurance and protection of your gold investments.
When it comes to gold or farmland, financial advisors often suggest keeping these assets as a small percentage of your portfolio, viewing them as a form of insurance rather than a main growth driver.
What is the Better Option?
In the end, as with so many investments, it really comes down to your preferences. Diversifying your portfolio is important, and investing in valuable assets that have been traded and invested in for thousands of years is a smart move. Investing in United States farmland can generate income through crop yields and rent, but if you want a safe haven asset that is an inflation hedge, investing in physical gold is your best bet. Gold wins on trust, mobility, and global recognition every time.
