Rising Farmland Values: An Indicator of Regional Economic Performance or a Speculative Bubble?

Abstract

Farmland values have recently increased dramatically in the Midwest, attracting investors from outside of agriculture and causing many inside agriculture to question whether a speculative bubble has formed. This article addresses that question by presenting an economic assessment of the facts related to farmland values across regions of the United States to give a more complete outlook for Midwestern farmland prices. After presenting an analysis of farmland values, this article concludes with a discussion of some often-ignored factors that should be at the center of the current debate.