Minnesota farm prices dropping, bust ahead?

In Minnesota, the most recent quarterly survey of agricultural bankers by the Federal Reserve Bank of Minneapolis, which tracks the important asset, shows Minnesota farmland prices have started to decline after a boom accompanying ethanol development. Prices per acre have fallen about 4.5 percent from what they were a year ago. That would reflect a decline of about $4 billion in farm wealth across the state, reversing a steady upward trend for much of the past decade, when land prices more than doubled in value.

 

Category: Fuels