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The real estate bubble that already burst

Even as residential housing recovers from the financial crisis, there's another real estate bubble that may have already burst: farmland.

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The Wall Street Journal reported that average farmland prices in the U.S. region known as the "farm belt" declined in the third quarter, citing multiple reports from regional Federal Reserve banks.

Bankers expect farm prices to fall even further going into 2014, the paper said, due to large crops this season that depressed commodity prices.

But at the same time, bankers also told the paper that farmers were in better financial shape than past crises, with more equity in their land and lower interest rates on their debt.

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  • Diana Olick

    Diana Olick serves as CNBC's real estate correspondent as well as the editor of the Realty Check section on CNBC.com.

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