Most everyone believes that real estate is dead, but is it really - not everywhere say analysts - after all there is a need for raw land, especially for farming and agricultural belt use. Anywhere where there is adequate irrigation and water supply in the agricultural belt areas in the United States we will find rather solid land prices. No, not the same as in the city where skyscrapers are built, but in states like Kansas, Nebraska, Missouri, Colorado, Wyoming, and the fertile plains of California for instance.

Still, if an area gets significant rainfall, and is not irrigated, it is good for growing certain types of crops. Therefore it also is slightly moving up in value. In fact it's moved up in value by 6.5% in the last year. Consider if you will the drastic increases in crop commodities around the world. When there is a better return on investment in agricultural belts, the land becomes more valuable, and therefore is rebounding despite the recession and the cost of real estate in other states.

A very interesting article on this was in the Wall Street Journal recently published on November 23, 2010 and it was titled; "Land Becomes Cash Crop in  agricultural belt," by Lauren Etter and Scott Kelman. The charts and graphs which accompany this article don't lie, they tell the true reality of farmland in many places in the United States. Likewise, another recent article suggested that similar things are happening in China.

It is my contention, and the thoughts here at our think tank which operates online, that these trends will continue, not only here but also in China, and that anytime there is a problem anywhere in the world with regards to wildfires, droughts, flooding, or serious typhoons and hurricanes, that the top of the supply curve will be reduced, and increasing the demand for such agricultural belt products, thus raising the price of the commodity and the farm land too.