Farmland Boom (and Brewing Bubble) Continues as Midwest Land Jumps 25% Year over Year, Led by Nebraska's 40%

We've been highlighting the opportunity in farmland for the past 3+ years. I've called it the best 'long term' investment I can see. That said, the move in the past few years, and especially this year has been astounding and feeling 'bubble-licious'. In Nebraska, farmland has risen 40% year over year according to the latest data... in Iowa 31% - that doesn't make much sense, aside from he fact so much easy money has been created and it's starved for a home. The Midwest region as a whole is up 25% year over year, which is actually an acceleration over levels seen last we heard in May. Like all good Fed induced bubbles, this one will end badly - let's look for the typical signs.... in this case a Ferrari dealership opening in Omaha should be a good one.

Via AP:

• The average value of farmland in several Midwest and Western states soared 25 percent over last year in the third quarter.
• Nebraska farmland values increased the most with a roughly 40 percent jump over 2010.
• The Federal Reserve Bank of Kansas City, Mo., said Tuesday that bumper crops and strong farm income in northern Plains states, like Nebraska, helped the region overcome drought and flooding.
• The Federal Reserve says this new survey of 243 banks showed the largest annual increase in land values since the survey started in 1994.
• The 10th Federal Reserve District covers Kansas, Nebraska, Oklahoma, Wyoming, Colorado, northern New Mexico and western Missouri.

Full survey here.