At a time when the financial markets are dropping in the United States, many people might be reconsidering their Golden Visa investment. After all, does it really make sense to invest 500,000 euros into a foreign economy during a time of economic turmoil?

‍

But with the US dollar is rapidly devaluing and stock markets are dropping, the opportunity to diversify your portfolio away from both those areas is becoming very attractive to American investors.
‍

Geo & Currency Diversification

At the most basic level, the majority of American investor's wealth is tied up in US dollars - with a sizeable chunk in the US stock market. As 2025 evolves, de-risking away from these areas could prove highly attractive.

‍

The US Dollar Slide

As the thread of a trade war continues, the US dollar has devalued considerably already over Q1 and into Q2 2025. This means Americans have less purchasing power with their wealth, than they did in 2024.

Portugal's Golden Visa program requires you to invest 500,000 euros into it's economy. This represents an opportunity to diversify your wealth away from a (currently) devaluing currency, providing extra protection against whatever the future may hold.

‍

Stock Market Separation

American stock markets have been particularly badly hit in 2025, but global markets have all experienced exceptional levels of turmoil. While diversifying your portfolio outside of the US could provide some protection, by choosing an investment that is completely dislocated from the stock market - you can de-risk further.

‍

Agriculture is an excellent example of an asset class you can invest into, which isn't tied to markets. The price of farmland doesn't go up and down in sync with the S&P 500, the FTSE 100 or any of the other major markets. This makes it an excellent choice during volatile times for the stock markets.

‍

Why Farmland could be the a good recession hedge

When uncertainty hits markets, investors often look for physical assets that combine stability, tangible value, and low volatility. Farmland meets all these criteria:
‍

Proven Performance and Low Volatility

Historically, farmland has consistently delivered stable, strong returns. According to the USDA, farmland has provided an average annual return of approximately 11.5% since 1991, surpassing gold’s 7.8%.

More importantly, farmland achieves these returns with significantly lower volatility than traditional assets like stocks or commodities.
‍

Inflation Protection and Consistent Income

Farmland offers a natural hedge against inflation due to its direct link to food production, with food accounting for 30% of the inflation index.

When inflation rises, both crop and farmland values typically rise as well. Put simply, when the inflation goes up, the price of food goes up - and therefore so does revenue from farmland. That in turn, pushes up the value of the farmland itself.

Unlike gold, farmland generates annual income from crop yields or lease payments, further enhancing its appeal during economic downturns.

Warren Buffet famously stated his preference for farmland over gold because it produces tangible value: “gold does nothing but look back at you.”
‍

Why Portuguese Farmland Specifically?

Portugal’s farmland sector, especially within almonds and olives, presents an exceptional investment opportunity, bolstered by unique market dynamics:
‍

Irrigation & Water Security

Compared to neighbouring farmland in Spain, Portuguese farmland has historically had poor irrigation & water security, leading to a significantly lower price per hectare.

However in the past few decades, the EU has pushed enormous amounts of irrigation funding into Portugal. Most notably, this culminated in the opening of the Alqueva Dam in 2012, which has created world class water security within it's sizeable catchment area.

Pricing of Portuguese farmland has been slower to adjust, meaning that the current price per hectare is still below farmland with equivilent water securtiyy in Spain. This delta is slowly closing, but still provides an excellent investment opportunity.

‍

Trade and Tariff Advantages

Portugal’s agricultural exports, particularly almonds, hold strategic value within the European market.

Given current geopolitical tensions and international tariffs, Portuguese-produced almonds and olives enjoy tariff-free access to European markets, offering a significant competitive advantage over U.S. producers, who face rising trade costs.

Almonds in particular provide an excellent opportunity in 2025. 70% of the world's almonds come from California. They are not only going to be affected by rising tariffs, but also the emptying of the state's resevoires to fight the wildfires of January.

This leaves domestic suppliers of almonds into Europe in a strong position - and indeed, the price of almonds has already risen by 30% in the last 12 months.

Supply and Demand Dynamics

The global demand for food, particularly fruits and nuts, is steadily rising due to population growth and shifting dietary habits.

At the same time, the availability of arable land globally is rapidly declining due to urbanization and environmental pressures, significantly boosting farmland values.
‍

‍

Robust Institutional Investment

Portuguese farmland has attracted significant institutional investment, increasing by approximately 120% since 2021.

Such institutional momentum often precedes further market appreciation, positioning investors to benefit from this rising tide.
‍

Historical Evidence of Farmland’s Resilience

Farmland has shown extraordinary resilience, notably during recent financial crises.

During the global financial crisis in 2008, farmland outperformed traditional assets such as real estate and stocks, providing positive returns while other markets collapsed.

Additionally, farmland’s long-term total returns have consistently surpassed benchmarks such as the S&P 500 and corporate bonds, further illustrating its investment strength.
‍

Pela Terra’s Golden Visa Opportunity
‍

Pela Terra manages Portugal’s largest agricultural investment fund, focusing specifically on almonds and olives in the Alentejo region.

The structured investment approach aligns perfectly with Golden Visa eligibility:
‍

• Income Generation: Targeting 5-6% annual dividends from crop yields.
  ‍
• Capital Appreciation: Aiming for overall annual returns averaging 7-9% through strategic enhancements and market positioning.
  ‍
• Sustainability: Implementing regenerative agriculture practices, positively impacting biodiversity, climate resilience, and rural employment.
  ‍

The success of Pela Terra’s first fund - raising €33.5 million and exceeding initial growth targets - demonstrates the viability and popularity of farmland investment within Portugal’s Golden Visa framework.
‍

The Bottom Line is You Need to Diversify Your Wealth and Future
‍

In uncertain economic climates, investors require more than mere capital preservation; they need growth, security, and strategic diversification.

Portuguese farmland, via the Golden Visa program, offers exactly that. With its impressive historical returns, low volatility, inflation protection, and strategic market position, it not only matches but exceeds traditional safe havens like gold.
‍

Choosing farmland through Portugal’s Golden Visa means securing your investment and safeguarding your family’s future, all while contributing positively to society and the environment.

‍