Ag Prices Catch-up to Farm Values

Here’s an interesting chart showing cropland values versus the CRB foodstuffs index.  Note how farm values were caught up in the 2004-08 real estate bubble,  increasing 58 percent while foodstuffs as measured by the CRB were up only 15 percent.  The 27 percent increase in food prices in 2o10 has allowed cropland valuations to catchup.

(click here if chart is not observable)