Last Updated : 14 July 2011 at 16:40 IST
Commodity prices have shifted to higher levels due to increasing use of Corn to produce ethanol, increasing commodity demand from high population nations such as China, and more recently, the drought in the Black Sea region. Agricultural land, the primary resource for field crop production, has naturally increased in value as a result, says a report from Rabobank.Increased demand and higher market prices for specialty crops are driving up agricultural land values in regions other than the Midwest, although not to the same highs. While prices are strong in these regions they are not at record levels, resulting in more modest gains.
Overall values for wine, raisin and table-grape vineyards have increased over the last five years, although there was some modest softening in prices for premium wine-grape vineyards in the Western U.S. during the recent recession. Increased global demand has also fueled signficant increases in the values of nut orchards, such as almond and pistachio orchards in California.
Values for ground suitable for berry production and seedless, easy-to-peel citrus production in California have risen signficantly due to increased popularity of these products.
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