CAPITAL-ASSET PRICING AND AGRICULTURAL ASSETS IN ENGLAND AND WALES

This paper uses Capital Asset Pricing Models to analyse the relationsh ip between returns and risks for agricultural assets in England and Wa les. The study also compares this relationship with those of non-agric ultural assets such as ordinary shares, government bonds, and commerci al and industrial properties. The results show that the estimated mark et risks associated with agricultural assets are low and tenant-type a gricultural assets have earned much lower returns than other assets wi th similar market risks.