“There’s very little land, and a lot of people looking to buy.”

Private equity firms are starting to look for profits on the farm.

In the last year, the soaring price of farmland, fueled by demand for corn and ethanol _ which is created from corn _ and increased popularity of ranch land has attracted a small but budding group of private equity investors.

A number of deals for private equity firms to buy farm and ranch land have closed or are in negotiations in states like Illinois, which has some of the nation’s best farmland.

Obstacles remain. Quality farmland is difficult to find, the investment isn’t liquid, and not everyone is convinced that the ethanol craze won’t burn out, despite massive investments by some agricultural giants. Read more

Original post by The Associated Press