What do farmers in New Zealand, England and Mattawa have in common? Soaring farmland prices.

These are boom times for agriculture. The growing middle class in China and India can afford to eat better. They want dairy products. They want western-style fast food. They want meat.

At the same time, the ethanol surge in the U.S. is creating high demand for corn, which is key component of cattle feed - as well as being delicious on the cob and an ideal movie-watching snack.

The combination is raising the price of all grains. Wheat, we all know, is trading at unheard of levels. (Today's Portland price is right under $11 a bushel; for most of the past 20 years, $4.25 was considered a very good price.)

It's also raising the value of hay - so much so that officials are warning farmers to be on the lookout for theft and scams.

Other crops also are booming. This year's Washington potato harvest was the second-best ever. ConAgra just invested $14 million to expand its french fry plant in Pasco.

And all of this is driving up land values. The Tri-City Herald reports that Mid-Columbia cropland that used to lease for $400 to $450 an acre is now going for $700.

The one big problem with all of this is $90 oil. Farmers burn gas and diesel in their trucks, tractors and combines. Many fertilizers and just about every pesticide is based on petroleum or natural gas. That's driving up production costs.

But annecdotally it seems that there's more good news than bad right now. An eastern Washington banker I talked with recently said that farmers have enough cash to pay off their loans early. He predicted an increase in sales of farm equipment this winter - and I'd be surprised if we don't see a surge in pickup truck purchases as well.

SPEAKING OF LAND VALUES - Wenatchee continues to be the nation's hottest housing market. Money Magazine attributes that to increased demand for homes from retirees.

YAKIMA'S DOWNTOWN continues to get new development, the latest being a branch of Wheatland Bank and a new winery tasting room.

And the growth in the wine industry is spawning more tourism in Yakima County. A recent state study estimated visitor pumped $307 million into the local economy last year.