Farmland prices rise faster than some Manhattan and London apartments (Jeff Wilson)

  Farmland from Iowa to Argentina is rising faster in price than apartments in Manhattan and London for the first time in 30 years.

  Demand for corn used in ethanol increased the value of cropland 16 percent in Indiana and 35 percent in Idaho in 2006, government figures show. The price of a Manhattan loft rose 12 percent, while a pied-à-terre in Islington, near London's financial district, gained 11 percent, real estate agents said.

  Farmland returns "will take a quantum leap over the next 18 months," after corn prices surged to a 10-year high in February, said Murray Wise, the chairman and chief executive officer of Westchester Group in Champaign, Illinois, who oversees land investments.

  Wise, who was born on a Canadian farm and now manages 85,000 acres, or 34,400 hectares, said prices in the U.S. Midwest might gain 12 percent a year through 2017. Farmland rose in value in 34 of the past 37 years, according to data compiled by UBSAgriVest, a unit of UBS, the world's biggest money manager. The returns are attracting hedge funds and investment brokers.

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