Bullard: concerned U.S. farmland may suffer a bubble in price

JONESBORO, Arkansas Wed Feb 13, 2013 12:09pm EST

JONESBORO, Arkansas (Reuters) - Ultra-low U.S. interest rates may be contributing to the strong rise in the price of the nation's farmland but high crop values could also be heating up the market, a senior Federal Reserve official said on Wednesday.

"I continue to be concerned about the prospect for a land price bubble in the United States," St. Louis Federal Reserve President James Bullard told an agribusiness conference hosted by Arkansas State University.

Responding to audience questions, Bullard also said the United States' total debt was "flirting" with levels that were unsustainable, based on economic research of nations whose debt levels had risen above 90 percent of gross domestic product.

(Reporting By Alister Bull; Editing by Chizu Nomiyama)

Recommended Newsletters

Reuters U.S. Top News
A quick-fix on the day's news published with Reuters videos and award-winning news photography and delivered at your choice of one of four times during the day.
Reuters Deals Today
The latest Reuters articles on M&A, IPOs, private equity, hedge funds and regulatory updates delivered to your inbox each day.
Reuters Technology Report
Your daily briefing on the latest tech developments from around the world from Reuters expert tech correspondents.