Richie Bros-SASK Spring Yard Sales-OMG WHAT IS GOING ON

[sumdumguy]

Life is one big experiment. Some just get themselves a bigger lab.

[SASKFARMER]

I remember wolf owning or buying land beside me when I was young. Big piss any coming in hired cats cleaned the land and opened it up. Then the shit show of the 80s hit and he was forced to sell. If problems in other areas and furthest away land had to go. He left a guy bought and four years later he lost and I bought and have owned for along time.

When I was in lending big banks pick winners and losers. Yea a guy with a idea can sweet talk a bank into just about anything. Look at two farms in sask that are fast growing could sell snow to a Eskimo. Either new Canadians with cash or banks.

But with banks and investors one blip or maybe two and once one gets scared they take you don’t faster than the corona virus if your over 80 with a bad set of lungs.

To big to fail is a joke comment.
Banks make money and some one is going the math. One blip and it’s all gone.

Look to the USA at a very large farm that even CNH was out millions. They let the guy go till all he had left was nothing.

Chinese on the other hand don’t like to lose so that’s a whole different bunch to get cash from. Not going there

[jazz]

Scotia is in deep with Monette I believe as someone showed a debenture security a few years ago here for $100 million or something.....wow big partnership.

You can add a 3 on that now.

Has to be the biggest land holding in the province now.

[SASKFARMER]

Yes five big banks are the largest land holders in Saskatchewan.

And second the Chinese.

Isn’t it great.

[tmyrfield]

Here's something I've done to try and understand the "true" cost of land. Convert today's per acre price and prices going back decades into the gold price for each period.

In my neighborhood just outside of Winnipeg, in 1980 land sold for about 1 ounce of gold per acre.

Today, the same piece of land sells for between 2 and 3 ounces per acre.

If you had to go out and mine gold to buy land, back in 1980 my parents would have had to mine one ounce of gold to buy an acre of land.

Today, you have to mine two or three ounces. In other words, you have to work two to three times as hard to buy the same asset.

By setting in motion an exponential growth in debt, fiat currencies are incredibly destructive. They incentivize not the creation of capital, but its consumption. As capital is sucked out the the economy, people find themselves working harder and harder to retain their standard of living.

Because fiat makes interest rates inherently unstable, your success in business depends on your ability to time your borrowing to take advantage of downswings in interest rates during each mini-cycle of the falling interest rate trend. If you mistime it, you can wind up with a huge capital loss.

People talk about normalizing interest rates all the time. Does the mortgage rate trend in the graph below seem "normal" after 1970? Same for the 10 year treasury yield below it. Although the gold standard was not a classical one back in the 50's, my parents started farming at a time when the cost of capital was remarkably stable. Those days are long gone and we're paying the price.

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This is an interesting concept but You are comparing an asset that can produce an ongoing and sustainable income albeit with a lot of work to an unproductive asset that you can only hold and sell once you may make money or you might not. I think more and more people are thinking land is a more long term protection of wealth. And a lot harder for someone to steal, except maybe the government. If that happens well we are all ducked anyway.

[furrowtickler]

So how does all of this work and or continue with crop prices at or below the cost of production?
What do some of these large outfits see that most of us don’t ?

[Sheepwheat]

So how does all of this work and or continue with crop prices at or below the cost of production?
What do some of these large outfits see that most of us don’t ?

The see shiny things. They love for and want more shiny things, whether there is money or not. Lol

[jazz]

Yes five big banks are the largest land holders in Saskatchewan.

And second the Chinese.

Isn’t it great.

And FCC and CPP and Teachers pension plans.

[blueversi]

The see shiny things. They love for and want more shiny things, whether there is money or not. Lol

Last one standing with all the shiny things and land WINS, but by then there’s no one left to impress or care!! Lol!

[Austrian Economics]

This is an interesting concept but You are comparing an asset that can produce an ongoing and sustainable income albeit with a lot of work to an unproductive asset that you can only hold and sell once you may make money or you might not. I think more and more people are thinking land is a more long term protection of wealth. And a lot harder for someone to steal, except maybe the government. If that happens well we are all ducked anyway.

I'm not suggesting that you sell your land and speculate in gold. Not at all. Merely pointing out that as our economy drowns in debt, we have to work harder and harder to maintain our standard of living. The valuation in gold is just a means of illustrating that point.

If the capital stock of the economy was actually growing and becoming more productive, we would not have to work as hard to acquire an income generating asset. But because we have staked everything on fiat currencies and governments that consume capital with money-losing boondoggles, we've effectively eaten the seed corn.