What are Guys Seeing?

[Guest]

Rental costs are generally going to match what it would take to finance it so farmers need to understand that. And land lords aren't going to be happy getting a 2% return on land. So pressure will be on for rents to go up if these types of land sales keep happening.

I mean you can get a GIC at 2% or a bank stock dividend at 5%. Has your bank ever lost money?

2.5% 6 months right now
3.3% three years

[bucket]

Rental costs are generally going to match what it would take to finance it so farmers need to understand that. And land lords aren't going to be happy getting a 2% return on land. So pressure will be on for rents to go up if these types of land sales keep happening.

I mean you can get a GIC at 2% or a bank stock dividend at 5%. Has your bank ever lost money?

Or even funnier would be watching landlords farm it.....since they think there is a bunch to be made....

My wife pulled me away long ago from a guy that said he had 160 acres....he did but only 80 was farmable...the other 80 was a slough....he wanted 40 an acre for the full 160....

[farmaholic]

Or even funnier would be watching landlords farm it.....since they think there is a bunch to be made....

My wife pulled me away long ago from a guy that said he had 160 acres....he did but only 80 was farmable...the other 80 was a slough....he wanted 40 an acre for the full 160....

Good thing your wife was good at math?

[bucket]

Good thing your wife was good at math?

A younger BTO came along and paid him market on the 160.....on farmable land he probably paid 3000 an acre....because only 80 is usable for anything....

[Flatlander]

Eventually the Hutts will have it all.

[bucket]

Eventually the Hutts will have it all.

I concur....rumour has it they have preferential lending rates with a financial institution because they know its pretty secure to carry on through the generations ...doesn't hurt to have slave labour......

[blackpowder]

They don't see it as slavery.
Their culture, their religion.
Rather the Hutterites than the Chinese. What would you rather see in 50 or 100 years???
Your great grandkids will know as much or less about you and your world as we know about our great grand parents.
I say let the Hutterites have it.
No capital gains or inheritance/estate tax either haha. No need for life insurance or annuities. No retirement costs. Way less bloodsuckers.
At least they have Christmas lol.

[helmsdale]

Or even funnier would be watching landlords farm it.....since they think there is a bunch to be made....

My wife pulled me away long ago from a guy that said he had 160 acres....he did but only 80 was farmable...the other 80 was a slough....he wanted 40 an acre for the full 160....

I've had guys that own land tell me that cash rent has to be worth at least 5% of market value...

Their argument is that if they were to sell the real estate, they could put it in the market and make 5%. Ok, great, then go ahead and liquidate it and put your money elsewhere! Just because an investor would buy it off of you for $1500, doesn't mean rent should automatically be $75/ac does it? In all reality, if all you are concerned about is your 5% ROI, then perhaps rental should be free as many years around here you are gaining greater than 5% just on the capital appreciation.

Trouble is, there are enough guys around that yap at social functions about how, "if anything were to come up for less than $70/ac I'd take it all!" They must have FAR SHARPER pencils than I do, and I think I run a pretty tight ship. Equipment is all paid for, living expenses are bare bones, and I do ALL my own repairs, crop scouting, agronomy, etc...

If there was $75/ac in it, dependably every single year, I'd be buying all the $1500/ac land I needed to make a comfortable living...

[blackpowder]

I'd say rents here are as high as 2.5% of market value.

[jazz]

Eventually the Hutts will have it all.

If my wife would dress like its 1880 and pluck hens and bake pies all day, I could afford to pay higher for land.

I am going to ask her.