34 Quarters south of Grenfell.

[SmallTimeOperator]

I think we are starting to turn the corner now to the downside. Grain prices are in a downtrend from the meteoric highs. Inputs are coming down. But equipment and land prices and land rents have never been higher. To me, this is a sign. It is a disconnect that can’t be ignored. We know land costs are “sticky” and are among the last to correct but eventually will. The greed of the equipment manufacturers will eventually lead to their demise. Many farms are locked in with high rents, high priced inputs, high priced iron payments. Hard times are straight ahead for many who have been thinking they are invincible.

[BreadWinner]

I remember lots of overextended guys loosing everything in the 80s only to buy it back cheap and way ahead of those that were prudent. Not sure who the smart ones were looking back.

[newguy]

Am I they only one here who lived through 1981 and survived with there memory intact ? History repeats itself.

Lived it unfortunately.Can not compare 80s fall in land prices to now.80s has limited buyers.Investing in agriculture was a joke.Even the RBC wanted to shed themselves of farmers.No longer the case as lots of money invested in hard assets like farmland.If farmers miss a few crops then grain prices will spike and catch attention of investors.The fact is there is a huge amount more prospective buyers of farmland than the 80s ever dreamed of.

[Oliver88]

I remember lots of overextended guys loosing everything in the 80s only to buy it back cheap and way ahead of those that were prudent. Not sure who the smart ones were looking back.

Maybe their son or grandson will do the same thing in 5 years?

[BTO780]

Not mentioning any names, here is what’s happening in a certain area. A large mega farm has now purchased land 65-85 miles from their home and are having it custom farmed by the owner or someone else. They purchased 12 quarters a yr ago, and then 30 quarters in the fall.

A very good source has told me they will continue buying whatever is available.
My feeling is once they can establish more acres they will eventually be farming it themselves.

[newguy]

Maybe their son or grandson will do the same thing in 5 years?

Yes I knew some that sold kand to their kids got a huge price then when the kids could not make it got the loan wrote down.But the thing then was no one had money so very limited of buyers.way more people our their that would invest in farmland as a long term investment.I bought a quarter for 18 grand and the banker said land right now does not pencil out if it was free.