Monday, September 12, 2011

Investors see promise in America's farms; some bankers see a possible bubble

Money continues to pour into America's farmland, but not by those who actually till the dirt and plant the crops. The continually rising price of food worldwide and the lack of arable land on which to plant is driving the cost of corn, soybeans, wheat and other crops up, something rich investors who have never planted a seed say makes buying this land a sound investment. (Photo by Joe Raymond, The Associated Press)

In Iowa, the value of farmland has almost doubled in six years, while values of farms in Nebraska and Kansas are up more than 50 percent, reports AP's National Association of RealtorsThomas Hoenig, head of the Federal Reserve Bank of Kansas City. He told Condon that current prices may be in an "unsustainable bubble." Others don't see it that way. Perry Vieth, a veteran bond trader and owner of Ceres Partners, a private investment fund, told Condon he is buying for 71 investors. His company owns 65 farms and he has returned 15 percent annually to his investors.

1 comment:

Kansas Land Brokers said...

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