Library

When Do Farm Booms Become Bubbles?

Summary

As the rapid run up in agricultural incomes has been capitalized into farmland values, it has called into question whether the farmland market is responding rationally to the situation. In other words, do farmland prices reflect their underlying economic fundamentals or are they in a bubble? While farmland prices have increased across the United States, the most dramatic increases have been concentrated in the corn-belt region.