One often overlooked real estate segment has held its ground in the broader market retreat that began in February, and its resilience may help lift its status in the eyes of investors and portfolio managers.
Farmland has a reputation as a safe, if boring, investment arena, thanks to its steady but low returns over the years and its illiquid nature — relative to an office building or single-family home, farmland is difficult to flip. But in a turbulent environment where legacy market dynamics are tossing and turning, some see farmland as an attractive bet.
“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.