Reader comment on: Jeff Sachs on ZIRP
Submitted by Fast Eddie (United States), Dec 18, 2012 19:53
Take a look at the price of prime corn-growing acreage in the U.S. midwest, especially Illinois and Iowa, where per-acre prices have shot past the $10,000 mark, even for large tracts. This is a direct result of the ethanol debacle which pushed corn prices to near-record levels, where they remain far above their long term average. When the Fed eventually raises interest rates, or, as is more likely, the bond market vigilantees push long term bond prices lower, the farmland bubble will burst. A similar crash would result if Congress ended the idiotic ethanol subsidies and usage mandates, but that does not appear likely, at least anytime soon.
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