The record value of U.S. farmland is being watched carefully by lenders and government regulators but the current price spike may not qualify as a “bubble” that will pop any time soon, said Leland Strom, chief executive of the FCA, the regulator of the Farm Credit System.
We spoke with AgriBank CEO Bill York at the National Association of Farm Broadcasting convention last week. We visited about the sustainability of the current land values.
Given the tenuous global economic situation, York says producers should keep a cautious attitude.
Midwestern farmland has sold for more than 10 thousand dollars an acre in the top crop states of Iowa and Illinois this year, double the values seen just a few years ago.