Land Sale 15 Miles south of Yard $256,000 a quarter.

[Hopperbin]

Furrow these guys farming investment land are already too far in deep. They have machinery payments and cannot turn back. Those machines don't get paid for in a couple years, things should get interesting. Another lesson to learn is don't get too hung up on a piece of dirt.
In Saskfarmers origional post the guy paid 256 a quarter and will be kicking himself for the rest of his life, no more capital gains exemption. Plus he has to pay tax on that money to pay for the land, he could be at low interest now but what about in 3 years. Going to have to make some serious profits to pay for that land. Would be better to invest in an rsp account and pay tax on 50 percent of the gain. No one will want to purchase his farm from the his corporation.

[DogPatch]

yeah, but these guys likely sold land worth twice or 3xs that in Calgary during the boom. A boom like that won't get their investment back in Saskatchewan.

Anyone remember playing Hot Potato as a kid? Guess who's the loser now.

[parsley]

You assume Alberta boys are buying for Alberta boys, dontcha.

[malleefarmer]

what is it with you guys you want a free market for grain but complain about free market for land.......

[SASKFARMER3]

Hey mallee no its not the same we have in Canada a bunch of parasites bidding up land in western Canada and buying it then over charging stupid farmers for rent. market use to be around 25 to 40 now 65 to what ever. You know where prices are for grain so go figure. These groups expect a return on their investment and that's where I think their going to find out what reality is, if it freezes this fall their really know what it is.

[parsley]

"parasites bidding up land"

Willing buyers and willing sellers.
(Sounds good to retiring farmers. Isn't that what we all want...a good capital gain on our land?)


"over charging stupid farmers"
(stupid?)
Willing landlords and willing renters.
(So fert and chem and seed and gas prices should rise but not rent?)

Sometimes, Sask, I get the feeling you read Alan Blakney's Land Bank Bible at bedtime. Pars

[sagewood]

Interesting to hear all the thoughts on the land sales. Hate to burst your bubbles on these bad, old AB. guys, but lots of those guys have hard cash in their jeans. Development etc. has given lots of farmer/ranchers in AB. good money--just east of Calgary CN Rail bought out 680 acres for their new container yard etc. which they will move out of downtown Calgary. The land owners got $15,000/acre (or so I was told) and do not think that is out of line with what is happening in the area around Calgary--during the boom years, a short 3 - 4 years ago, landowners were getting offered more than that per acre. Some land around Calgary is quite productive, however, if someone can buy quality land that has a ton more top soil than what is around here--well why not go for it? As I recall the land quality and the valley views around Indian Head--all positive--good land--nice vistas--with money in your jeans, it is not hard to 'hang on', get good deals, buy the best and just enjoy the life that you live and take off the odd good bumper crop, or several average crops. Your crops over in the fertile lands of Sask. produce way more than crops in some of the AB. areas where the top soil is thin, the frost free days are short and the moisture is sometimes hard to come by.

[parsley]

I was also told one Alberta corp was purchasing land for foreign buyers. The company's specific transaction of land referred to, that I was interested in, was in Saskatchewan, and to a Chinese buyer.

sage, there will be all kinds of land companies.

Land is a hot commodity at present. And it will rise still more. And land situated where there are no riots and raids,(think South Africa), looks like a sound investment to buyers.

[checking]

The most I ever sold land for was $25,000/acre to Transgas. Ofcourse, it was only a tenth of an acre for a meter station. They will also return it to me should the station ever be abandoned. Now, how could I ever say anything bad about a Sask. crown corporation!! Land bank had its purpose.

[sagewood]

All too true on the stable country with no riots etc. We in Canada look pretty darn good when you come from an area where others will kill you in a heart beat b/c of your race or religion, or simply to take what you have worked for and acquired. As my Mom used to say--'hang on to the land, they aren't making any more of it'. She saw those Sask. farmers/ranchers in 1930's Sask. prosper--if they could 'hang on', and a few did--and they did prosper.