Kevin Kliesen is an economist with the Fed in St. Louis. He says there’s anecdotal reports that some of the money is coming from big institutional investors.
"It’s difficult to say whether this money is here to stay or whether it’s chasing yields, or returns. I guess we’ll know once interest rates start to go up and farm income starts to slow or decline.”
Even though he’s heard plenty of concerns, Kliesen says it remains too soon to know if there is a looming farmland bubble. He says some investors might be looking at farmland as a long-term investment, with the potential to feed a growing world population.