This paper examines how the composition and profitability of agricultural investments vary across farmers with different levels of total wealth and different degrees of weather risk. The study uses unique panel data from rural India on investments, wealth, and rainfall to analyze how the distribution of productive and non-productive assets differs among farmers. The research tests the hypothesis that risk-averse farmers tend to hold more diversified and less risky investment portfolios, and that the profitability of these portfolios is influenced by both wealth and weather risk. The study finds that the composition of agricultural investments is not primarily driven by technical scale economies, but rather by farmers' risk aversion. It also shows that the trade-off between profit variability and average profit returns is significant, and that the loss in efficiency associated with risk mitigation is higher among less wealthy farmers. The results suggest that the distribution of wealth has a significant impact on the riskiness and profitability of agricultural investments, and that wealthier farmers are less affected by weather risk. The paper also explores the relationship between weather risk and the riskiness of investment portfolios, finding that the influence of weather risk on asset portfolios and farm profitability varies with measured risk preferences and total wealth holdings. The study concludes that wealth-equalizing redistribution of land could increase average profitability, but only if land is acquired from the upper tail of the wealth distribution. The results are consistent with decreasing relative and absolute risk aversion rather than solely with wealth-related credit market or other risk diffusion advantages. The study also finds that for farmers in the top quintile of the wealth distribution, increases in risk do not lead to reductions in the measured riskiness of investment portfolios and thus to decreased profits.This paper examines how the composition and profitability of agricultural investments vary across farmers with different levels of total wealth and different degrees of weather risk. The study uses unique panel data from rural India on investments, wealth, and rainfall to analyze how the distribution of productive and non-productive assets differs among farmers. The research tests the hypothesis that risk-averse farmers tend to hold more diversified and less risky investment portfolios, and that the profitability of these portfolios is influenced by both wealth and weather risk. The study finds that the composition of agricultural investments is not primarily driven by technical scale economies, but rather by farmers' risk aversion. It also shows that the trade-off between profit variability and average profit returns is significant, and that the loss in efficiency associated with risk mitigation is higher among less wealthy farmers. The results suggest that the distribution of wealth has a significant impact on the riskiness and profitability of agricultural investments, and that wealthier farmers are less affected by weather risk. The paper also explores the relationship between weather risk and the riskiness of investment portfolios, finding that the influence of weather risk on asset portfolios and farm profitability varies with measured risk preferences and total wealth holdings. The study concludes that wealth-equalizing redistribution of land could increase average profitability, but only if land is acquired from the upper tail of the wealth distribution. The results are consistent with decreasing relative and absolute risk aversion rather than solely with wealth-related credit market or other risk diffusion advantages. The study also finds that for farmers in the top quintile of the wealth distribution, increases in risk do not lead to reductions in the measured riskiness of investment portfolios and thus to decreased profits.