Wheat prices and agricultural land prices

The July rise in wheat prices was the fastest in 51 years, raising fears of surging food prices and rising prices for farmland, according to an item at CNBC.com. The surge resulted partially from drought in Russia but has and will be worsened by government spending, according to hedge fund manager Jim Rogers:

Shortages in agriculture are likely to add to problems created by governments who printed money to spend their way out of the financial crisis, according to Rogers.

"It's all happening at a time when governments are printing more money… it's a very dangerous situation," he said.

"When you print money, it's got to go in a place where it can protect itself, and that's real assets," he added.

Among other consequences, the rise in wheat prices should place a premium on farmland:

"Anybody who's got potentially good agriculture land and good weather" is likely to emerge a winner out of this situation because prices of nearly all agricultural commodities are set for steep rises, Rogers said.

This news is consistent with reports of increased farming activity in places like Massachusetts and the growing trend toward urban farming across the country.

Rising commodity prices shall constitute only one factor affecting the price of real estate.
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Update here.