America’s Farmland Bubble

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Published : February 20th, 2013
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Category : Opinions and Analysis

This Kansas City Federal Reserve report(.pdf) on credit conditions in the Midwest agriculture sector made the rounds last week as it offered more confirmation that the central bank in Washington is indeed blowing more bubbles in their multi-year effort to re-inflate the U.S. economy after the last asset bubble burst.

America's Farmland Bubble

Of course, last summer’s drought was a factor in irrigated land prices rising sharply, but the fact that non-irrigated land prices rose 25 percent – after the worst drought in decades – should be setting off all sorts of alarm bells somewhere. According to this Bloomberg report, new Kansas City Fed President Esther George and new Fed Governor Jeremy Stein seem to be paying attention, but it’s not clear that anyone else is.

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Tim Iacono is the founder of Iacono Research, a subscription service providing market commentary and investment advisory services specializing in commodity based investing.
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