Ag land prices: demand or bubble?

HansenA big topic of discussion in ag-circles these days is whether or not increasing farmland values are legitimate or a “bubble”. Bryce Hansen is a real estate broker and auctioneer with Hansen & Young Incorporated in northwestern Wisconsin. He says land values in his area have increased 20-30 percent in the last couple of years. He says the price varies by type, size of plot and location so you will see anything from $2,500 to $8,000 per acre. He credits some of the increase to urban sprawl from the Minneapolis-St. Paul area but another factor is the increasing number of cash crop farmers in Wisconsin. Those farmers want more land and that is leading to more demand and higher prices.

Hansen notes that while land values do cycle, there is additional support from the demand for ethanol and the export market, especially China.

AUDIO:Hansen talks about the market 2:00 mp3

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