Quote from Bloomberg:

U.S. farmland values are at a record high even as the rest of the country suffers the worst housing crisis since the Great Depression, with the highest crop prices ever pushing up agricultural real estate.

The value of all land and buildings on farms averaged $2,350 an acre at the start of this year, up 8.8 percent from a year earlier, the U.S. Department of Agriculture said today in an annual report.

Surging corn, wheat and soybean prices boosted values in the Northern Plains, which includes Kansas, Nebraska, North Dakota and South Dakota, by 15.5 percent, the biggest increase in the country, according to the report.

The report also tracks rates for land that’s rented for farming. Rents for farmland rose 13 percent last year to $96 an acre while pasture fees rose 8.3 percent to $13 an acre. Because of high demand for additional farmland and the high cost of buying, farm-rental prices may rise 20 percent to 30 percent in 2009, said Murray Wise, chief executive officer of Westchester Group Inc., a farm-asset management company based in Champaign, Illinois.

– Bloomberg

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Of course the denialists laughed when we said farm land would rise and urban land would drop in price.

But given a new realization that you cannot eat your lawn and food needs to be grown nearby, the relocalzation and peak oil impacts do kick in here.

See urban land price slide in Winnipeg intro slide set at www.plancanada.com/SSP5.

RB