Midwest farmland prices up 12.5% since 2000 partly thanks to ethanol demand

In New York state, a paper soon to be published by the Journal of Real Estate shows that farmland prices in the Midwest have increased an average of 12.5% per year since 2000 thanks to increased demand for grains, while prices were highest for land located close to ethanol plants. Low interest rates have also had an impact in driving up land prices.