Jul 12, 2014
Home| Tools| Blogs| Discussions| Sign UpLogin


Your Precious Land

RSS By: Mike Walsten, Pro Farmer

Mike Walsten has covered major business trends in agriculture for more than 40 years.

Respected Publication Tackles Potential Farmland Bubble

Apr 25, 2011

Mike Walsten

The respected British publication The Economist has chimed in on the current rocket-ride in cropland values and concerns a bubble may be forming. It hits the key facts -- values are rising due to high commodity prices, low interest rates and low supply. And it warns of what could happen if (when) commodity prices fall and interest rates rise. Their main angle appears to be that bank regulators are not doing enough to slow the run-up in land values. But they do not offer a solution. Much of the land purchased has been done with equity and limited financing so threatening banks to watch what they lend seems problematic. Meanwhile what do farmers and bankers do while the Federal Reserve continues to keep interest rates low, fuel the money supply and weaken the dollar -- the main culprits behind the run-up in land values?

Click here to read the full story.

If interested in seeing a copy of LandOwner, just drop me an email at landowner@profarmer.com or call 800-772-0023.

Log In or Sign Up to comment

COMMENTS

No comments have been posted, be the first one to comment.

Receive the latest news, information and commentary customized for you. Sign up to receive Top Producer's eNewsletter today!

 
 
 
 
The Home Page of Agriculture
© 2014 Farm Journal, Inc. All Rights Reserved|Web site design and development by AmericanEagle.com|Site Map|Privacy Policy|Terms & Conditions