Will Canadian Farmland Be Going Public?

[furrowtickler]

All good points except Burbot.
Malta, you are soo right.
BTW - Willie I fully agree with your statement 100%
IMO this b/s will sort itself out in due time with investors lickin their balls like beaten dogs in 5-10 years.
Simply not enough money to go around on a 10 year average to pay out the kind of dividends investors demand.

[buzz]

Good discussion guys.

I sometimes wonder who is going to finance
agriculture in 15 to 20 years when I want to
retire. Most of our operations require some
serious money to buy them. I don't want to have
all my equity tied up with no out. Just thinking on
a cold winter morning.....

[bucket]

If people look at the way they acquired their farming operation which is typically one piece at a time, that may be an effective exit strategy as well.

You grew your farm a base hit at a time and won the game and now when you want to retire you want not just a home run but a grand slam.

Its funny, people have the moral support of communities as they grow and prosper but never think of giving back in the same way. Maybe sell a chunk of land to a young guy with potential, that through no fault of his, was not afforded the same chances you were.

Also, if you are looking for someone to finance the next guy to buy you out - look in the mirror. Plenty of farms in the sixties didn't need a bank. Retiring farmers took on that role and it was a good deal for both parties. Lawyers can make it happen.

[farmaholic]

Excellent thread filled with common sense for the most part. Funny the only people that seem to see it for what it's worth are the ones with their hands in the dirt!!!! I can't wait to see what happens in the future. I like high land prices because it makes mine worth more too but when prices deviate too far from productive capacity to speculation there will be a correction sooner or later. These are interesting times.

[SASKFARMER3]

Its like any thing, Ponzi scheme all over.
But like anything patience and wait. Seems
to work, has in past.
I think in future if my kids dont want to
farm we will rent property. Land always
has value. Look at USA lots of family
owned land that hasnt been farmed by a
family for three generations. IMHO

[jd3007]

I have to agree with Bucket, I see very few large operations wanting to sell out in smaller parcels. In many situations these operations have grown to a size where the only people that can afford to buy these farms
are investors or European dollars. Farmers have done it to themselves as growers by buying up all our neighbors. I have also seen many growers who were the largest farmers in the area sell to investors because they didnt want to sell to their neighbors because the neighbors would then be the new "big boy" on the block. Its sad but true. I seen it happen in my own backyard where I had an uncle who sold to investors and didnt offer any of it to local individuals,including myself who all were interested in his package. His reasoning was no one could afford to buy him out completely and he was scared land prices would drop so he closed the deal. After the deal was done he was over and was somewehat regretting his decision telling us that he was the best farmer in the area and no one would farm the land as good as him or would ever be as succesfull as him in the area. Im sure this has happened to many of you and as long as there is a "pride issue" among sellers we will see investors and outside buyers coming in.

[bluefargo]

JD3007
Your uncle sounds like a bit of a schmo.
He should feel bad about not offering it
to you or your neighbours. I think it is
just plain ignorant to sell it to
investor without trying locally. Bad for
family relations too.

[sumdumguy]

My two bits worth.
A
Big wheel buys land for whatever he needs to
pay. Goes to europe. Starts land investment
company. Sucks in a pile of cash. Sells his land
to the company at inflated value and fills his
pocket.

B. investors are left holding the bag.

Poof!