CPP

[bucket]

Squeezing young people on land purchases is just bad business.

You will realize it later when there is no one to buy your farm. Including your kids. And CPP will be selling at the same time because no is there to farm or make a living off the farm.

Watched it happen at least once already.

Communities go backwards.

[vvalk]

So farming is different then everything else. No multi nationals or just palain big companies are aloud to buy any business because we need to give young people a chance. Give me a break bucket.

[vvalk]

There will always be someone willing to buy unless you get your way and put a bunch of restrictions on. Sounds like really you don't want any competition. So big companies aloud. No foreign people aloud. Should we add only people within say 50 miles of any land are aloud to buy. Who makes up the rules?

[bucket]

That's ok we all can help bail out broadacre, one earth, wild horse, etc.


Interesting no one wants to go back to the backers of these enterprises like Paul Martin former pm of canada. Or john crow former governor of the bank of canada. To bail them out. Nope go broke and send the bill to the rest of us. And make it harder to get the appropriate financing for young guys starting out.

[BreadWinner]

New combine $500,000
New tractor $500,000
New Diesel 3/4ton $75,000
New House $500,000
New semi $175,000
Quarter of land $250,000
can you spell INFLATION???
I sure can.
It isn't the land prices that are lagging it is the price of farm commodities that are in the tank compared to everything else.
The way I see it grain prices have to go up as well,there is just too big of supply holding them down and that will most likely change soon. Chances of another world record crop year after year is not possible.
Investors are just getting in on the action ahead of time.
I'll spell it out DONT SELL YOUR LAND!!!

[fjlip]

Till it goes higher...agree land is CHEAP compare to iron and inputs, not to mention transportation. Too much grain in the world, correction please.

[furrowtickler]

In time it will sort itself out, we are already seeing first hand "investment" groups getting their ass handed to them over the past two years.
Paying 3-4% of $150,000 is a far cry from 3-4% of $350,000 plus. Someone is going to get skinned, whether it be the farmer or "investor" sooner or later.
People have short memories - there was a lot of good land just a few years ago that could not get rented for tax's - I can see that coming again. You cant farm for free just to make others a good ROI. Your only fooling yourself if you think you can. If a farmers buys the dirt , there is only one hand in his pocket he may be able to make it work, but there is no room for two hands in the pocket for the returns needed to cover risks involved.
Yes land is "cheaper" in Sask than many other places but we carry the highest risks and are held ransom in transportation costs and timely movement being so far from ports/ markets - it's all relative.
Is land a good investment - ya , long term. The problem is that it went up too far too fast and the primary producers risk protection has stayed too flat, and current expectations for short term ROI are far too lofty.
I am not saying investors should not be able to buy land , I just think at the end of the day they will not get the ROI they dream of and will have a tough time finding renters and most will implode like Broadacre/One Earth.
I cant see land prices in Sask moving up much at all in the next ten years. There has been a steep run up in land prices and it will stay flat at best for a while now, JMO, shoot away.

[TOM4CWB]

Bucket,

In ALberta for sure... young guys have NEVER had an easier time getting financing to buy farm land.

In farm family operations... the transfer from generation to generation has never been easier.

We are very blessed to have interest under 3 percent on 5 year money, 4.75 on 20 years.

Half of what it was just a few years ago.

[furrowtickler]

Interest rates are in half but land has gone up 2-3 times - me thinks we are no better off just deeper in debt ..

[furrowtickler]

Oh and machinery has basically doubled in that time as well - but ya it "was" easy to get money at low int rates but I think that easy money from banks is about to cool off. I could be wrong.