This article was edited to meet broker-dealer compliance guidelines in April of 2023. While we have often spoken about how farmland can be a great portfolio diversification toolfor investors, many investors ask about how to diversify farmland holdings. This is a great question, and, in fact, one of the reasons Xlligent Trader was founded. Diversification allows investors to spread risk. In a portfolio, if stocks perform poorly, then one’s bonds or real estate may perform better. Even within an asset class it can be a good strategy to diversify. For instance, one is often counselled to own a wide variety of stocks.