After a decade in which farmland prices kept heading
steadily north, the market looks ready to cool off. But according to Barrons, the result is likely to
be a return to normal, not disaster.
Over the past decade, prices for U.S. farmland have boomed,
capped by a 20%-plus jump last year in some of America's most fertile regions. The bad news: The torrid gains are coming to
an end. The good: A crash, like those that followed the tech, dot-com and
housing bubbles, is unlikely. Instead, farmland prices probably will return to
a more normal ebb and flow of modest gains and declines.
The recent bonanza for U.S. agriculture was driven by
stepped-up food demand from China and other emerging lands, and the rising use
of corn-based ethanol as a gasoline additive in the ...
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