Farmland Values Jump 18% From A Year Ago

EDITOR'S NOTE: The value of American farmland is up 18% from last year, according to the Chicago Fed. While this might be good for farmers in the short term, it’s bad for the country in the long term. This explosion in farmland prices comes from high incomes and low interest rates, as well as skyrocketing soy and corn futures. The problem is, as Yahoo! Finance reports, “Now, the high farmland prices are adding to concerns about inflation, with rising costs for raw materials and transportation leading to increases in food prices,” and that’s not good for anyone. 

(Bloomberg) -- High crop prices are trickling down to agriculture real estate, which have risen by the most in nearly a decade.

Farmland values jumped 18% from a year ago during the third quarter of 2021 in the Seventh Federal Reserve District, a five-state region including all of Iowa and most of Illinois, Indiana, Michigan and Wisconsin, according to the Chicago Fed.

Now, the high farmland prices are adding to concerns about inflation, with rising costs for raw materials and transportation leading to increases in food prices.

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Originally posted on Yahoo Finance.