NEWS
Land Inflation Is No Cushion
Marcia Zarley Taylor DTN Executive Editor
Tue Feb 12, 2013 03:18 PM CST

CABO SAN LUCAS, Mexico (DTN) -- U.S. agriculture is underestimating its vulnerability to another adjustment in land prices, Purdue University economist Mike Boehlje told 150 farmers attending the annual AAPEX meeting in Cabo San Lucas, Mexico, this week.

With Iowa land auctions bringing more than $20,000 an acre in some cases this winter, "the question isn't whether we're in a boom, it's how long the boom will last and what the bust will look like," he said.

Optimists have contended that the surge in farm net worth will cushion any blow should land values correct any time soon. Some economists ...

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