I have a Theory on Land!

[FarmJunkie]

Sounds like the Big M farms got way bigger in the last few weeks

[Austrian Economics]

40 years of falling interest rates are responsible. Rising asset prices are the flip side of a falling rate of interest. It's all about the concept of net present value.

Price rises become more dramatic as the rate of interest approaches zero.

This will become meteoric once rates drop into negative territory.

[jazz]

https://twitter.com/realagriculture/status/1506279154081316876

[ajl]

So you figure the feds are buying Sk in order to turn it into a giant reserve? Great way for the feds to further subvert the west. I also would like to see more farmers on the land not less. With some flexible off farm income it does not take that large a land base to support a family depending off course on what your needs are. Would even be a competitive income situation if 2/3 of the governments work force was be laid off as it needs to be.

[SASKFARMER]

In canada we have a fed gov that’s going to make up for all that was lost for First Nations and the only way is Sask farm land. It’s more than hiding money etc. I’m saying follow the money something is up and farmers aren’t borrowing hundreds of millions to buy land. Yea a section here and there or two but not 100 quarter deals.

[blackpowder]

We need more farmers, not fewer and fewer. To get there, we need to think outside the box. Trouble is, only about seven of us western Canadian farmers do, so I guess it is what it is. Bigger and better forever!

Here is an example. On my little farm, rather than panic and act like with my land base it’s impossible, I look at different options. If my four kids wish to farm, which may well be the case, we will find a way.

It will not involve over priced land, iron, and will certainly not be at the mercy of a few input and mass commodity buying conglomerates.

I have been planning to start a thread about this idea of farming differently. Especially in the sense of generational transfer. But I presume it will die due to lack of interest. Long live the cookie cutter farm. Ugh.

I admire what you are doing.
For a renaissance of family farms to occur, the standard of living and quality of life will have to equal elsewhere.
Rural life as we know it today is a commitment for those accustomed to amenities and mobility.
You can sell the idea to a New York couple pretty easy. But the lack of access to the rest of the world their sacrifice.
Both parents will have to make living from the farm. All the children will have to make do. Limited extra curricular, limited health care, limited education. Heck, we don't even have decent internet.
I'm very glad it works for you. Your children are very lucky.
But for mainstream, I suspect a tough sell.

[jazz]

In canada we have a fed gov that’s going to make up for all that was lost for First Nations and the only way is Sask farm land. It’s more than hiding money etc. I’m saying follow the money something is up and farmers aren’t borrowing hundreds of millions to buy land. Yea a section here and there or two but not 100 quarter deals.

Only 4% of Canadas land is privately held. There is lots of crown land to gift to them. They didnt just inhabit prairie.

[shtferbrains]

Maybe we should be trying to settle those Ukrainian refugees on the prairies instead of Toronto.

Sask lost population last yr.

I doubt a lot of Ukrainian farmers are refugees.
Military age males can't leave the country.

[SASKFARMER]

All i am saying is go into your bank this spring throw all your clear titles down on the desk say 10 20 30 40 100 200 whatever you have.

Then say at $500,000.00 a quarter or whatever your area is x that many quarters we will use 10 as an example.

that's $5,000,000.00 mill now tell them you want to risk it all and borrow 20 mill using the 5 as a down payment.

Tell me how many will get the 20 mill. So you know its investor money.

So what's the plan i say slippery liberals getting the land for land reclamation and not having to deal paying sask farmers the money.

[Old Cowzilla]

I think it might be Chinese over the libs ( libs not that smart ) but in this area it's mostly local . Huts, Amish,Dairy farms , BTO's ,and quite a few young pups. One farm in area got split 4 ways my son and I where able to snag a 1/4 ( classic 1/4 next door ). Seemed like a lot of money 4 months ago but looks like a bargin now. Strange times indeed.

[foragefarmer]

We need more farmers, not fewer and fewer. To get there, we need to think outside the box. Trouble is, only about seven of us western Canadian farmers do, so I guess it is what it is. Bigger and better forever!

Here is an example. On my little farm, rather than panic and act like with my land base it’s impossible, I look at different options. If my four kids wish to farm, which may well be the case, we will find a way.

It will not involve over priced land, iron, and will certainly not be at the mercy of a few input and mass commodity buying conglomerates.

I have been planning to start a thread about this idea of farming differently. Especially in the sense of generational transfer. But I presume it will die due to lack of interest. Long live the cookie cutter farm. Ugh.

We would all like to see the rural population grow whether it be small towns or more farmers, but it certainly not the fault of the family farms who want to continue to farm and for what ever reasons to expand in size.

The farmers who are retiring or selling out have their own personal reasons as to why they are going the route they are. Maybe they want to enjoy a different life style who knows. But at the end of the day in Canada you have that choice.

No one farmer is being forced off their farm or being pressured to sell if they are financially sound.

If you choose to remain at the current size you are using the current equipment you have, so be it.

But, don't call the rest of us humble family farms with a couple of extra yard lights, a "cookie cutter farm"

You have no idea what each of our family farms goals and contributions are to our local areas or how we have come up with our own ideas how to make our family farm unique and prosper.

[SASKFARMER]

That's nice forage but your missing the big picture these mega farms arent like the rest of us when in a drought they double in size and had no crop. Think about it.

[jazz]

That's nice forage but your missing the big picture these mega farms arent like the rest of us when in a drought they double in size and had no crop. Think about it.

If you took in 5 free and clear rental properties in the city, wouldnt the bank say the same thing?

Thats a huge amount of leverage and would trigger some risk alerts at the bank I assume.

[SASKFARMER]

If I took 5 clear homes in Regina at 375000 a home and said to my banker ill give you all 5 what will you give me he would say go buy a 1.5 mil home.

[jazz]

In comparison, there is about $115B in farm mortgage debt in the country. There is $2.2T in home mortgage debt. Land still a pretty small player in the credit markets in this country. Banks certainly favour home mortgages over any other debt. Huge lending on an unproductive asset. Tells you whats wrong with the country.