This ties in well with the timing on Farmland goes public
Warning over US land 'bubble' as price growth dips
The "bubble" in farmland prices in the US agricultural heartland has, after 24 months of growth, slowed sharply, in what could set a market trend.
An index of farmland prices in states such as Iowa, America's top corn and soybean-producing state, and Kansas, the top wheat-growing state, stood at 74.3 this month, well above the level of 50 below which signals price falls, a survey by Creighton University showed.
The figure continued an unbroken series of rising farmland prices stretching back to February 2010.
However, led in particular by slowdowns in Minnesota and North Dakota markets, the number was considerably lower than the record high of 84.1 recorded for December.
'Air will come out of the bubble'
The market slowdown looked unlikely to be the last Ernie Goss, Creighton University economist, said, warning that "air will come out of the farmland price bubble when agriculture commodity prices soften in the months ahead".
The extent of the rise was a reflection of the "very healthy" levels of farm profits, which had "encouraged farmers to purchase new equipment and to expand operations", Professor Goss said.
"This has pushed up farm land prices at rates that are, in my judgment, unsustainable in the long run."
The warning is the latest in a series over the extent of US farmland prices, which Iowa State University said last month had risen, in the state, by 32.5% last year, "the highest percentage increase ever recorded" in the survey's 70-year history.
The Federal Reserve's Kansas City branch has voiced particular concern over the extent of the price rises, comparing them with the 1980s, when a plunge in prices, inspired in part by soaring US interest rates, followed a sharp run up.
Ethanol question
The survey added that farmers faced rises in input costs averaging 7.2% this year, well ahead of inflation, although Creighton failed to expand on the forecast.
And it revealed that more than 90% of bankers believe the removal at the end of last month of the tax credit for blenders of ethanol into forecourt fuel will have only modest impact on the agricultural economy, or none at all.
Data on Thursday showed US ethanol production falling for a second straight week last week, by 3,000 barrels a day, although, at 941,000 barrels a day, output remained historically high.
US ethanol stocks rose 4.1% to 19.54m barrels, the highest since June.
Warning over US land 'bubble' as price growth dips
The "bubble" in farmland prices in the US agricultural heartland has, after 24 months of growth, slowed sharply, in what could set a market trend.
An index of farmland prices in states such as Iowa, America's top corn and soybean-producing state, and Kansas, the top wheat-growing state, stood at 74.3 this month, well above the level of 50 below which signals price falls, a survey by Creighton University showed.
The figure continued an unbroken series of rising farmland prices stretching back to February 2010.
However, led in particular by slowdowns in Minnesota and North Dakota markets, the number was considerably lower than the record high of 84.1 recorded for December.
'Air will come out of the bubble'
The market slowdown looked unlikely to be the last Ernie Goss, Creighton University economist, said, warning that "air will come out of the farmland price bubble when agriculture commodity prices soften in the months ahead".
The extent of the rise was a reflection of the "very healthy" levels of farm profits, which had "encouraged farmers to purchase new equipment and to expand operations", Professor Goss said.
"This has pushed up farm land prices at rates that are, in my judgment, unsustainable in the long run."
The warning is the latest in a series over the extent of US farmland prices, which Iowa State University said last month had risen, in the state, by 32.5% last year, "the highest percentage increase ever recorded" in the survey's 70-year history.
The Federal Reserve's Kansas City branch has voiced particular concern over the extent of the price rises, comparing them with the 1980s, when a plunge in prices, inspired in part by soaring US interest rates, followed a sharp run up.
Ethanol question
The survey added that farmers faced rises in input costs averaging 7.2% this year, well ahead of inflation, although Creighton failed to expand on the forecast.
And it revealed that more than 90% of bankers believe the removal at the end of last month of the tax credit for blenders of ethanol into forecourt fuel will have only modest impact on the agricultural economy, or none at all.
Data on Thursday showed US ethanol production falling for a second straight week last week, by 3,000 barrels a day, although, at 941,000 barrels a day, output remained historically high.
US ethanol stocks rose 4.1% to 19.54m barrels, the highest since June.
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