Farmland Bubble

What is Farmland Bubble?

1.

A situation in which farmland prices skyrocket due to speculation in the futures market in one or more crops. Asset bubbles form when too much money finds its way into one area of the market. The bubble is considered to be excessive, and, therefore, not sustainable in the long run.

Farmers are planting more and more corn, because the demand for ethanol is creating a farmland bubble by raising the value of their land to previously unheard of heights.

See farm, speculation, future, corn, ethanol, value
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