A situation in which
farmland prices
skyrocket due to speculation in the futures market in one or more crops. Asset bubbles form when too much money finds its way into one area of the market. The bubble is considered to be excessive, and, therefore, not
sustainable in the long run.
Farmers are
planting more and more corn, because the demand for
ethanol is creating a farmland bubble by raising the value of their land to previously unheard of
heights.
