Canadian Farmland Prices Soar

[SASKFARMER3]

its all about timing. Or patience
grasshopper.
But i thought it was funny no sales from
Remax actually hit land titles. So these
guys either are waiting a full year to
get paid or the deals didnt take place.
But also did here that some of these
land companies are now having problems
getting renters. DAH yea you over pay
and now the stupid farmer is suppose to
bail you out with unreal rent.

[newguy]

Said it before. Sask farmland has a bit to go before shying off investors. More interest now than a couple of years ago. Question is if investors control enough land will they start contolling rental prices. Canola companies have edged their prices up and farmers have not quit buying why would they stop renting if prices go up? After all farmers are willing to pay more for seed than to their landlord for rent as it stands.

[ASRG]

I don't know about other areas but the prices quoted are fairly close for central Alberta?
I don't think anyone should look at a bad year (or a good one for that matter) and try to predict price?
My Dutch neighbor tells me you can't buy anything in Holland for under $100K/acre. They look at $6k/acre as an incredible deal!
If farmland is put up for sale around my area....it is snapped up if at all reasonable ($4K/acre)....takes a few weeks if it sneaks up much over $4.5 K!
Rents are generally in that $80-$100/acre ballpark.....which is a pretty poor return on a $4K investment.

[charliep]

I wonder to myself what I would do if I had $10 million, $100 million, etc to invest. Cottonpicken tells me I should invest in commodities/metals but I am a little more risk adverse. As long as I am willing to some short term volatility in land prices (i.e. I may pay too much), over the long term land will likely be a good and safe investment compared to other places I can store money.

The problem with being a farmer looking for payment capacity is you have to compete with these guys who have deep pockets. Some of your neighbors may also have deep pockets so it will not always be a outside investor.

[AlbertaFarmer5]

ASRG, What part of central Alberta are
you in where prices are above 4k? Not
quite there out west here yet?

Long time lurker, first time poster on
Agriville. Hello to all, and thanks for
the input and updates on crops across the
praries.

[ASRG]

Just east of Red Deer.

[SASKFARMER3]

Albertafarmer5 welcome!

[perfecho]

Even though the return may be not great on an acre of land, it is always there, ready to feed the owner.....can't say the same about paper investments!

[furrowtickler]

Have a look out your window the next time you go for a drive , then tell how that investment goes for ya..

[cottonpicken]

I recommended land 6-7 years ago,it falls in line with
commodities and metals and fine wine and art work
and a herd of goats or a heard of silkworms.

Risk is all about perception,i think paper is the
riskiest thing to be in and it scares the hell out of me
almost as much as canadian housing,that crash is
going to be biblical.