Farmland Prices and Ill Effects

Kansas City Federal Reserve Bank: As recently as 2013, a sharp rise in U.S. farmland prices was prompting warnings, according to Market Watch. But since then, prices for prime crop-growing dirt have started to soften, but gently and with few ill effects. A once red-hot market in farmland that has subsequently cooled off with few ill effects offers a case in point. First off, fears of the next bubble are understandable. Both had devastating effects on portfolios, while the latter also served to trigger a devastating global financial crisis. ‘Dizzying prices’ When it comes to farmland, it was Kansas City Federal Reserve Bank President Esther George who made clear in January 2012 that soaring prices were on the radar. Investors can painfully recall the collapse of two investing bubbles within a decade of each other: the tech bubble in 2001 and the housing bubble in 2007. (news.financializer.com). As reported in the news.