"The key is what happens in our crude oil and energy markets," he says. "The risk on the downside is technological breakthroughs that would dramatically reduce oil consumption, lowering the whole price structure. If anything, though, the risk is on the other side. We likely are going to continually be bumping into demand for crude-oil production that we can’t easily get above."

Good says new-era prices would not be affected by a shift from ethanol to another fuel additive made from crops, such as switchgrass. Finite land available for production would continue to drive up prices for other grains, just as corn has raised prices for soybeans and wheat.

"We would have to steal land away from corn to grow a different energy-related crop, so now you have that competition again," Good says.

Irwin says food costs have likely seen the worst of the shift to higher-priced grain after posting 5-6% increases this year. But he warned that commodities account for just 20% of food costs, so prices could still rise to cover labor, transportation or other expenses.

Good and Irwin say Illinois farmers posted record earnings in 2007, and likely will again this year. But profits will ultimately dip back to historical levels of roughly $50-60 an acre as land and production costs rise to keep pace with new era prices.

"The real winners in this are landowners," Irwin says. "If history is any guide, we will see every ounce of the operating margin bid into land and cash rents."