Wendong Zhang, assistant professor, was interviewed for an April 13 S&P Global story, "In a sea of red, an inviting patch of green."
"Over the years, I think more and more institutional investors have considered incorporating farmland as part of the portfolio, especially to balance out volatility in the equity market," Wendong Zhang, assistant professor of economics at Iowa State University, told S&P Global Market Intelligence.
Data show remarkable stability of cropland values over the years, even during the 2007-2008 financial crisis. Cropland values over the last two decades have climbed gradually, at rates a little above inflation. Zhang, of Iowa State University, said it takes about a decade for a specific interest rate cut or hike to be capitalized in the farmland market. The Federal Reserve's recent interest rate cuts have lowered return expectations around farmland, and a protracted pandemic scenario could be devastating for crop values, which would have negative implications for farmland values, Zhang added. But interest overall in the space, for now, remains high.