Foreign Land Ownership

[MBgrower]

Mb local maybe buying but the price is being dictated by foreigners and Chinese on the doorstep, sellers and buyers both know this. Farms are risking too much equity and security to expand with a new generation stepping up to the plate. Western Canada used to be a competive ag producer, but we are quickly losing that edge on the world stage. Our high land cost is putting us at a disadvantage, Black Sea region can put a bushel of wheat into export position for three dollars less than us. That gives them a great competive advantage. As commodity prices continue on that downward trend they will destroy us.

foreigners or investors don't overpay, they pay market price. just like at a Ritchie auction, no one pays 50k over bid price, they pay what the market at the time is dictating the value of the asset. the current land values in w.can is due to farmers willingness to pay these prices, investors or a small part.

[phoenix64]

Your full of it mb, both investors, Chinese overpay for land so that they can block large parcels to attract large entities to rent, and down the road flip as a package. This is why there is concentrations in various rm's up to 30-50% of land owned by investment fund/Chinese/Robert andjelic/Brett Wilson and the like.
No need in sticking your head in the sand and pretend it isn't happening?

[phoenix64]

I guess if govt rules allow it why not, they are simply following the will of the people, but I think the "people" have to know what is going on in their back yard, good or bad.

[farmaholic]

In a lot of cases the only reason farmers are paying the "going rate for land" is because "if you want to play you have to pay". Or that they want that missing piece of the puzzle. But one thing I can assure you of is in this area farmers are definitely NOT the "pace setters"! I would have grudgingly paid the current going rate for a half beside me....even though I thought it wouldn't have made a lick of sense!

[SASKFARMER3]

Ok ill throw this in here. Its a example of what happened in RM north.

What would you have done as a farmer.

You have lets say a couple quarters and are surrounded by a Bigger farmer.

you have struggled most of your farm life. Your kids left and now its time to sellout. you decide to sell a few at a time.

Your first offer comes in from a New Canadian who left his country where the Farmers are Killed on a Weekly basis. His offer is 165 a quarter as a example. Your next offer is at 170 per quarter from a long term neighbour. Your third is a offer from a Younger farmer from miles away at 115 a quarter but really its his relative who is buying as a investment.

Who did the guy sell to, Want to guess. No Chinese involved nothing.

Some times farmers are their own worst enemy.

He left 100 grand on the table that even if he didn't need his kids could of used in the future. Because once its gone the investor out of province now would want the 200 for it or more.

Farming is a Business and people know a good deal when they see it and once its gone their is no redo. Its sold. Same with the Foreign buyers its sold and gone.
So yes MB in your neck of the woods locals are buying because Foreigners would in a heart beat so locals have to bid.


Even the banks throw this out as a arms length comparative land sale in that RM.

[westernvicki]

Land ownership policy varies per country and objectives: some nations have no rules, it is open to all, but often where preserving the industry is primary objective land ownership is restricted to foreigners. Indeed being able to own land is not always a right in many countries unless you are a citizen. It is interesting to note how farmland is protected in countries from what may be potentially the highest bidder, the foreigner, as part of an overall food security plan. Farmers have various objectives and most are not going to object to the highest bidder so indeed the policy comes down to national policy on the ownership of assets for the production of food.

[phoenix64]

Well put Vicki, I also would be interested to hear from someone who has been a long term renter, I mean twenty years. In my research of farm families in the states in these scenarios, they are virtually left with nothing for retirement. We can't base our conclusions regarding viability of this model on the last 5 years of farming with cheap credit and good grain prices. Furthermore how does a farm family build infrastructure, buy equipment, mortgage homes put money away for kids education and retirement based on 3-5 year lease terms. It seems the only way possible for this to be successful is the landlord has to be prepared to leave money on the table. We rent 35% of our acres from a friend, good relationship but he has left a little for us to make it work, everyone seems happy for now but could change if we had to deal with his grown adult children.

[LEP]

I rent about 65% of my landbase and have for about 20 years. I do quite well.

How do I do it? I don't spend every friggin extra cent on equipment. 5 year leases only. I know my costs and don't over pay for land or rent. That means I don't farm a gazillion acres, but I do make money most years.

I have been looking for a mfwd tractor for about 5 years. But I am not spending more than 80k on a tractor that is going to get 200 hrs a year. I see lots of neighbors with more $ in their auger tractor than I have in my main tractor.

But I have a real nice bank account.

[sk_wheatking]

To each their own. Sell to who you want to, for the price you feel you need. To all of you on here saying that you would take a bath for hundreds of thousands of dollars on a land sale just to keep a neighbor going or help out a young farmer or to keep an investor out well then let's see what you would do when you really decide to sell. Sf3 if you sold out (just an example) your saying you would happily settle for a much discounted price to keep out an investor? Let's say take a couple million less to prove a point? The bullshit here on some issues is hard to take.

[phoenix64]

Wheat little more complicated than that. If this were to continue on the scale of the past 10 years then don't expect to retire in your nearby community with all the amenities, maybe children and grandchildren with jobs nearby, hospitals, schools and your investment in the retirement home retaining its value. Can't have your cake and eat it to. A lot of farmers on here, myself included were allowed to build our enterprises (1974 - 2002) in sask with closed borders. Now we want to keep borders open? and tell the next generation to **** themselves? seems irresponsible. Never been a left wing thinker, in fact bout as capitalist as one can be, but believe this topic needs some careful consideration for the viability of western Canada going forward.

[phoenix64]

Thanks Lep for input, good to hear.

[fjlip]

If you are renting, help smaller younger guys, selling all and never coming back, $$$ talks, your last chance for cash. Always been that way, my relatives included. Paid highest price to get the land, no deals.

[taptout]

If we want to worry about foreign ownership, I would first worry about the foreign bond-vigilantes that are buying Government of Canada debt through increasingly large issues of bonds to keep Junior's spending habits satiated.

[SASKFARMER3]

Sk wheat king reread my post I said the farmer face the investor a deal and his young nephew instead of takin the extra hundred thousand from the neighbour or the new Canadian who really is farming.

**** boys read.

Plus I'm not selling don't need to it's land will always have value unless Trudeau gives everything to the chineese and then we get taken over as a country and our land is confiscated by the new ruler. Then I'm ****ed.

[sk_wheatking]

Sk wheat king reread my post I said the farmer face the investor a deal and his young nephew instead of takin the extra hundred thousand from the neighbour or the new Canadian who really is farming.

**** boys read.

Plus I'm not selling don't need to it's land will always have value unless Trudeau gives everything to the chineese and then we get taken over as a country and our land is confiscated by the new ruler. Then I'm ****ed.

You sure get angry if anything you post gets questioned. I think I need a break from agriville.