Alan Bjerga writes for Bloomberg about the soaring cost of farmland.
U.S. farmland values are at a record high even as the rest of the country suffers the worst housing crisis since the Great Depression, with the highest crop prices ever pushing up agricultural real estate.
Once again, this is simple economics. Demand for food products has risen, particularly as we have decided to start using food for non-food uses, like ethanol. Rising prices always attracts more producers, wanting to get a slice of the profit pie.
The resources that produce the profit will increase in cost also, as everyone along the chain of capitalism tries to capitalize.
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