Ethanol drives farmland price inflation

According to the Londonist blog, demand for farmland in the Americas is pushing the price of this commodity up faster than it is rising in London.

Demand for corn used in ethanol increased the value of crop land 16% in Indiana and 35% in Idaho in 2006, government figures show. The price of a Soho loft appreciated only 12%, while a pied-a-terre in Islington near London’s financial district gained 11%, according to realtors.

So if you want to get into farming to grow corn for ethanol, wait  for one of two bubbles to burst…

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