Thoughts on land prices ?

[AlbertaFarmer5]

if it didn’t have a house on it (don’t want to pay for a house I don’t need).

That is the biggest problem around here, every quarter has a house on it and a subdivision as well only allowed one subdivision out so you're stuck with the house at twice the cost of the quarter, I've had enough fun in the rental racket, and the economics don't work for the productive land to pay for the house. Leaves a very small number of properties available, at any price.

[iceman]

“The land market only goes up”
Dave Portney

[bucket]

Giddy the phuck up ....upupupupup...20 dollar canola, 10 dollar wheat 16 dollar durum...

Anyone can do this...big money in owning land...



Disclaimer. DYODD...and the opinion expressed here may not be at all factual...lmao.

[Ache4Acres]

It’s all interest rates

Stay low=land prices continue to rise
Go UP=land prices in trouble - world in trouble

Some predict $5000 won’t buy a loaf of bread let alone an acre of land

Crazy times indeed

[SASKFARMER]

Land prices will continue to go up. South valley got big rains and has decent crops so those guys might look north of the valley and buy. One guy bought 20 some quarters north of the valley for $586,000.00 a quarter. Sort of says what's coming. I still look as history repeating but maybe the history is like Europe years ago the farmers were the workers and the wealthy owned all the land. Hey its happening.

[Sheepwheat]

With a bunch of big rich farmers, competing for the few scraps of land that are left and will come for sale, I can’t see it dropping around here. We only just started getting up to speed with where the rest of the province has been for years this spring. We’re still lower than most places from what I know.

Glad I got what I got when I did, because there is zero hope now.

[hedgehog]

Land prices will continue to go up. South valley got big rains and has decent crops so those guys might look north of the valley and buy. One guy bought 20 some quarters north of the valley for $586,000.00 a quarter. Sort of says what's coming. I still look as history repeating but maybe the history is like Europe years ago the farmers were the workers and the wealthy owned all the land. Hey its happening.

Thats why sask had rules against outside investors buying farms before about 2007 was it not?

[SASKFARMER]

It’s two Sask large farmers.

[shtferbrains]

Thats less than 3 years conola at your expected 70 canola and wiseguys $20 a bushel. With money left over.*

Right wiseguy?

[rumrocks]

I see the Biden government is going to make it very difficult for children to keep farms that they inherited from their parents thanks to a 40% tax rate after the first 1 million. Socialism is a wealth destroyer.
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In April, President Biden announced the American Families Plan (AFP) that promises billions of dollars as "an investment in our kids, our families, and our economic future." But deep within the proposal, it describes gains on property transfers would be considered a taxable event.

Conservative news outlet The Center Square called out the Biden administration on Thursday for attempting to "destroy Iowa family farms" through the proposed AFP property transfer tax.

AFP describes gains on property transferred at death or by gift would exclude up to $1 million per taxpayer. The exclusion would be indexed for inflation after 2022.

Craig Hill, the president of Iowa Farm Bureau, calls the proposed transfer tax a "major threat" for family farms in the corn-growing state who pass along significant sums of farmland to the next generation to work.

AFP can be compared with Biden's Rural Plan that calls for "partners with rural communities to invest in their unique assets, with the goal of giving young people more options to live, work, and raise the next generation in rural America – making sure the wealth created in rural America stays in rural America."

The Rural Plan says it will "make it easier to pass farms and ranches onto the next generation."

However, Hill told The Center Square that is not the case. He said the transfer tax could devastate some families who don't have enough money to pay the tax because land values have been artificially inflated with cheap money from the Federal Reserve.

Crunching numbers, the planned exemption for a married couple is a million dollars. Anything above, the couple would be taxed at 40%. Given typical Iowa farm size is 359 acres on average at $7,559 per acre, that would leave the couple with $1.7 million exposed to taxes. After the exemption, this means they might owe $680,000.

Given that farmers have already experienced a decade of depressed farm income and razor-thin margins, the ability to pay a hefty tax on a land transfer could force lower-income farmers to sell.

Sen. John Boozman of Arkansas serves as the top Republican on the Senate Committee on Agriculture, Nutrition, and Forestry, said the "land swap tax would dry up the farmland market, create barriers to entry for new or beginning farmers, and stunt agriculture business growth and reinvestment in much of rural America."

So what's the real agenda of the Biden administration pushing the tax proposal ahead that could wreck small farmers and force them to sell? Well, we can only speculate vultures like Bill Gates and big Wall Street private equity firms circling the Midwest waiting for distressed farm sales.
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