Stetson -
I have been buying farms for many years, so my basis is quite reasonable. Yes, farmland prices are very high everywhere! It has been my observation, that when farmers have cash in hand, they spend it, which should keep land prices strong. The primary driver of the current high commodity prices is Quantitative Easing. As long as the Fed keeps the money pump going, Ag will remain healthy and flush with cash. I currently don't see that the Fed has any other choice but to keep printing money. The rest of the world has all but quit buying our debt at the current low interest rates, so as the debt comes due, the Fed will be the likely buyer. The same goes for our continued deficit spending. If we have to rely on the rest of the world to buy our debt, the interest rates we offer would need to be substantially higher and we simply can not afford that. If or when the Fed quits expanding the money supply, be very careful! With that being said, I see no end in sight at this time.
