Ontario Teachers are Renting out there land in our area, Lets watch!

[SASKFARMER]

You are correct jake!

I called when the boom peaked!

Some laughed and said it would continue.


We're now in the next phase where expensive rents end.


History repeats here we go again.

.

[jake550]

You are correct jake!

I called when the boom peaked!

Some laughed and said it would continue.


We're now in the next phase where expensive rents end.


History repeats here we go again.

.

What land sales have there been for less since then?

I'd say there's less land trading hands now because the high prices flushed out anyone thinking of selling. The last stuff that sold here near us was some of the worst cattails and alkili. It sold just prior to seeding and was new high mark for that type of land. Makes that land south of balcarres look like a deal at under $3,000 an acre.

[farmaholic]

All I have to say is I wish I would have bought more before Sask land prices were over-whelmingly successful in playing the catch up game.

I can't imagine paying those rental rates.....when our dirt is bought and paid for....it seems like a lot of margin to give up.

160 acres @ $2500 = $400k minus $100k down.
$300k @ 3.75% interest = $11, 250 interest cost.

versus

160 acres @ $75/acre = $12,000 rent.

Rent equals interest cost. Now hope the principle portion of the loan payment can also be paid from the crop.

Like someone else said....."hello mid 80's". Not a crash but a correction, and it may be a repeat--- where it took "decades" to reach the price paid before the correction.

[SASKFARMER3]

Also the lentil lotto this year with a guarantee with crop insurance is going to end next year. The province wont do that again.

[SASKFARMER3]

A few sales have happened in smaller numbers since and are 2600 range or lower.

Boys I called it and the next step is a realignment of rent.

In a non lentil wet area prices will drop.

With very little insurance guarantee for lentils next year prices will drop.

low prices for our product cause rent realignment.

Welcome to the 80s its not drought and subsidy by Americans its floods and poor quality crops.

[Oliver88]

Based on $2600 per acre, the Ontario Teachers want 5% ROI they require $130 per acre + farmer pays land taxes. Will they will get 2%?

It's unfortunate farmers rent from these investment groups and encourage this investing.

[farmaholic]

POP!..... WHAT WAS THAT? The land price bubble just popped.

[farming101]

This land sold for 470 recently. Passed.

[farmaholic]

101, Is that the worst case scenario? Does it ever get better than that in a dry cycle?

[bucket]

Doesn't it spell disaster for the guys that competed with pension funds for land?

They probably used the increase in their existing land as asset value to buy more.....

If land prices drop they are under water pretty quick?

[bucket]

Farming101

I didn't know you had images of my land.

I would have drove you across it and even bought you coffee if you would have stopped in.....lol.

[farming101]

Hasn't changed much since 2010. It can still hold more so I guess this isn't the worst case scenario yet.

I think we're in the spin cycle right now.

[sumdumguy]

What a picture! Is rice farming popular in that area?

[farmaholic]

Spin cycle.... shit, I belly laughed! From my experience with a washing machine, that would either mean your going to get wet again or the whole cycle is over and time for the dryer! Good luck.

[fjlip]

You are thinking "rinse" cycle, and repeat and repeat...