land prices

[redbaron]

In our area it is not big corporations. Just farmer against farmer. All sizes. Just seems like they are buying at any price. Not much up for sale here either. Just like you mentioned Jag we have seen land prices up even more in the valley in southern MB. What drives the engine? We all have our ideas but ask yourself this question. Have you ever regretted buying any of the land you own so far. So far I have not. Am I in the market. Not at these prices. Yet only time will tell who the fool is.

[SASKFARMER3]

Land is land. Rent is rent always someone looking over the fence, always. So buy if you can, Is a house in Regina worth 750,000.00 the answer is No. So a quarter of land for $160,000.00 or more and you get an income off that property. Goal of our farm is to own over 50 quarters. Were almost their. Set a goal and follow it. Renting your a BTO but when your done your done, and if you didn't sock away large amount of cash was it really worth it. So yes land is worth whats happening just some are getting it allot cheaper than others.

[liberty]

Some land in my neighborhood near Winnipeg recently rented for $75 per acre. Given that we've had some pretty wet years in the recent past I don't know where guys are getting the cash to pay these kinds of rents.

I think this runup in rents and land prices has a lot to do with monetary easing by central banks. All things considered, interest rates are still pretty darn low.

[mustardman]

Jag come about 45 miles southeast of you and land has been selling for 200,000 /quarter or $1250 /acre. Starting to make 1000/acre look like a bargain.

[Jagfarms]

Mustardman

I heard about the land that sold for $200,000 1/4. Is all the land in your area selling for that price now? Or was that just for that one parcel?

[AG_guy]

a few years ago a farmers was offered $440,000 for his ¼ and it was turned down, he wanted more.

[SASKFARMER3]

Ill give the guy a bargain and he can have it all for cool $18,920,000.00 Ill even throw in the new dryer system and cleaning plant. Minerals I keep though. HA HA HAH.

[rockpile]

I see 2 things driving land prices: 1: Long term
return on investment aided by low interest rates. 2:
A new paradigm in that we now have 3rd, 4th and
5th generation farmers and ranchers who have
what we might term as 'old money'. They are in a
position to buy at any cost with little risk to
themselves. They also see expansion as the key to
survival over the long term. So, when a piece of
property is available nearby their core operations,
they use that inherent wealth to buy and expand if
for no other reason, to ensure that no one else gets
their hands on it. Hence price is no object. Besides,
when ever did returns on production ever set land
prices? Land is in finite supply, demand will
continue to increase. Factor in also the buying
power of Colonies and foreign buyers, nearness to
urban expansion and so you end up with ever
increasing dirt values. We are just catching up to
what has been happening south of us for decades. I
agree with Saskfarmer, owning is superior to
renting, especially over the long term. I wish I
would have had this gem of wisdom 40 years ago, I
would be a gazzillionaire now.
Rockpile

[SASKFARMER3]

Rockpile you make sense the guys who are buying in our land have always expanded. Hell we are a 3rd gen going on 4Th as we speak. But in our area only three buyers most years. Red Army and two others. One pays whatever to get other two are tight.

[Jagfarms]

I do not think that land Prices will go down to $500
acre in our area again. I do think if the commodity
prices are low for a few years the price of land will go
to or below $625 acre here. I am thinking this could
happen in the next 2 years. That is just my opinion
and I am betting on it by not buying land now at these
prices.