SIOUX FALLS, S.D. (AP) - South Dakota farmland values have
tripled in the past decade, thanks to low interest rates and high
commodity prices.
Agriculture officials say it's a trend that likely can't be
sustained, but they also say there shouldn't be chaos if and when
the bubble finally bursts.
The value of agricultural land has risen from $421 per acre to $1,374
since 2002. Many in the industry remember a similar spike in the
early 1980s, which was followed by a crash that devalued the land
by half and led to widespread bankruptcies and bank closings.
State Agriculture Secretary Walt Bones says the forces that
created the farm crisis of the 1980s were different than today. He
says in the 1980s, land values were driven up by inflation.
(Copyright 2011 by The Associated Press. All Rights Reserved.)
AP-NY-11-01-11 0956EDT
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