Wednesday, August 8, 2007

Ethanol fueling higher farmland prices

Well, there goes that pipe dream for a while. The NY Times has a story about how the ethanol boom is fueling sky rocketing farm land prices.

“For everyone who doesn’t own an acre of land, these prices mean it gets a little harder to get into,” Mr. Aupperle added. “For an entry-level land owner or a renter, there’s a bit of a thought right now that the train is leaving and I’m not on it.”

In Iowa, which produces more corn and is home to more ethanol plants than any other state, farm rental prices are mimicking purchase prices: they were up about 10 percent this spring over a year ago, according to a study by William Edwards, a professor at Iowa State University who said it was the largest jump since he started tracking farm rents in 1994.

In the back of my head, for the last few months has been the idea of renting a farm for a year and seeing if I somehow liked it better than IT. I thought perhaps I'd find some farm, buy a Jersey to milk, a flock of chickens, and a few pigs to raise for market and grow some vegetables. But the ethanol craze is looking like it may put a lot of people off of that idea. Pretty much anyone that isn't directly related to a farm.

Well, I'll keep my I on this.

1 comment:

mlantz said...

A Jersey - they kick! Better make it a Guernsey. Lisa may have half a cow to sell. ;)