Dramtic Increase in Farmland Prices of Concern

Posted by Brian Gould Mon, 07 Apr 2008 15:18:00 GMT

The surge in grain prices has caused U.S. Midwestern land values to rise as well, but prices have now expanded so far, so fast that some experts worry that the farmland market has become a bubble waiting to burst.

“Recent increases in farmland prices raise questions about whether the farmland price increases are outpacing increases in farmland returns,” said Gary Schnitkey, farm financial-management specialist at the University of Illinois extension program