National Public Radio's "Marketplace" recently had an interesting piece on the current appreciation in agricultural land values.

It turns out that ag land has appreciated relative to other assets and continues to appreciate at a level that has attracted investors such as MetLife, TIAA-CREF, and John Hancock.

This in turn has attracted the attention of the Federal Reserve, and, the Fed is worried. What’s worrying the Fed is the potential fall in land value if this turns out to be another real estate “bubble.”

For those of us who lived through the 1980s’ agricultural crises this is also a concern. During the 1980s, “leverage” was the downfall of many. When land prices tumbled, many could not pay the banker. Farms and rural banks failed.

To read the entire article, link here. Read more from the November issue of BEEF, U.S. Pasture Values Stabilize.