One Earth and BS no one wants to buy out aging farmers.

[Burbert]

Saskframer is the Ultimate farmer, knows
all does all, and everyone in the hood
thinks he's a great man. Constant
expansion is the only way to go, volume
economics, speaks volumes. More
vacation time, more time with the family
and to share/work with friends and
neighbours. Me thinks he is seeking
some kinda super farm family of the year
award, sos somebody will take his
picture and put it in the local paper.
What a mans man, pointing ou that the
old farmers are now the roadblock
standin in his way...........

[rockpile]

The highest rate of return in any sector for 2010
was agriculture - 18%, and that has caught the
attention of the investment community. I now know
of at least 12 funds dedicated to taking investment
money and buying farm land (like any real estate
portfolio) with a targeted return of 7% per annum.
That is how the cash rents are determined - the
renter assumes 100% production risk. Compared to
a 2% GIC, that's a damn good investment! And
prairie dirt is the cheapest soil anywhere in the
developed world.
In AB, Sask, and Man, foreigners are not allowed to
buy farmland for pure investment - only if they are
going to come, live on and farm it.
Old farmers. Think about it for a second. Despite
the tax free allowance, depending on size, maybe
some of these guys can't really get by the Capital
gains cost. If a guy is getting more return on rental
than the rate of return on money investments (plus
the risk), maybe they see themselves better off with
something more tangible like the land.
Cheaper land prices in the future - get over it! I had
the same mindset after the 1st bump in the 70's. It
never happened. Buy now if you must because it's
only going up.
Rockpile

[SASKFARMER3]

Furrow its a game after a while as you go. IT's been a farm goal since day one. My grandfather was a certain size and My father was double that now I and my partner are double his size. My kids should be double my size. Land is an investment for me I own it its mine once its paid for. IT's an Asset. Renting is nice but always someone looking over the fence. Its also a fun challenge. Its a rush to buy a new quarter or section go in clear Bury and Landscape.

[fjlip]

Paying for the land with after tax dollars is a drain on cash flow and does not make for a good living being constantly borrowed. Lots of tax to pay, live poor till it's paid,IMHO.

Fellow doing that here says he is so poor he can't even pay attention! Chuckle Chuckle.

A quote I like "true contentment comes not from attaining more but from wanting less."

More will never be enough, called greed, leave some for others.

There is a right size for everything.

[smallguy]

By landscape, if you are referring to draining the water on to the neighbors, then please change your name from Saskfarmer3 to Asshole1 !! If you are not referring to that, then sorry and scratch this post.

[SASKFARMER3]

Only if it drains into my farm or major water run.

[farmaholic]

Geez, there are some good points in this thread.
Rockpile, you point out some good reasons regarding the old farmers not selling but I think I have a point that land prices correct themselves every once in a while, it is just a matter of time it always recovers but how long it takes depends. Land prices seem to trend up over the looong term.

fjlip, I don't want to sound arrogant but buying land for some farmers that have reached a large net worth and file taxes corporately may not be such a big hurdle. Corporately it is approximately an 85 cent after tax dollar. Some established farmers can be flush with cash and picking up the odd piece at a time isn't too overwhelming for them. Once that certain size is reached it is easier and easier to come up with the money. Unfortunately not everyone is this lucky and it lends itself to the cliche the rich get richer. It takes money to make money. I think I am going to get slammed for this comment. You also posted an excellent quote.

[cottonpicken]

Compare the price of land to the price of gold over the
last fifty years.

You may see they have something in common.

[SASKFARMER3]

Well Land is a real Asset and Gold is a real asset. Some BS company or Bank or house (can be burnt to ground) Land and Gold still survive. Yes I see similarity.

[ado089]

For everyone with $$$ sings in your eyes regarding farming and farm land take your true cost of production and pencil in crop insurance yields and prices, how does that leave you after a couple of years. In my case over a relatively small acreage I would purge about $33k a year. Now that looks pretty good at the end of the day. Next pencil in $8 canola $5 wheat with pretty average 35bu/ac canola and 40bu/ac wheat crop, how does that look? Plunk in a modest 7% prime interest rate, where do you sit. Add the fact that we will never see nutrients below 40 cent/lb again. On my tiny acres there's room for a $500,000 PROFIT swing. How many of you land bulls know how to work a spreadsheet? Sometimes I wonder if I would be better to sell on these stupid highs and buy back land when (or maybe where) things cool. The only hitch in that plan is idians and hutterites, that land is gone forever.