Is Monette Farms like Bernie Madoff?

[AlbertaFarmer5]

[url]https://www.producer.com/news/yes-hutterites-do-pay-taxes/[/url]

Thanks for posting.

So the misconception that they are taxed as a church is incorrect.

I assume principal payments on land still have to come out of after tax dollars?

[BighatPete]

Hutterites just bought a quarter for $8,700 per arable acre. On paper it looks like I nearly perfect quarter. Reality is much different.
I'm almost certain they aren't speculating in the land market.
I highly doubt they have outside investors.
They won't be developing or subdividing it. Quite the opposite anything with a house or buildings on it, they tear them down.

By all indications, they continue to be buying land with the profits they made from farming the land that they buy.
If it works for them, I don't see why we should believe it's not working for any other farmer who buys land.

Are there enough Hutterite colonies to prop up the market. Maybe they can do 5/10% of the big properties, but only a small portion

[AlbertaFarmer5]

Are there enough Hutterite colonies to prop up the market. Maybe they can do 5/10% of the big properties, but only a small portion

That wasn't my point. My point was I believe they are buying land with the profits they made from farming the land they buy. I just used them as an example for the reasons listed above.

Based on our own finances, I assume there are many successful farmers doing the exact same thing.

In other words, maybe these prices are sustainable.

Maybe there's no need to invoke any Grand conspiracy theories about where the money is coming from and who and why.

[GDR]

I don't think anyone doubts a farm with an existing, potentially paid for land base can purchase more with profits from the entire farm. The argument is that the new land likely wouldn't cash flow itself until its paid for in 20 plus years and that is pretty specific to farming. No other industry operates that way. The other part of that equation is likely quite a hit to the personal lifestyle (take home income) of the expanding farmer to make it happen, while non farming peers spend disposable income on other things in life, not land payments.

[sumdumguy]

Its a pissing match using crazy bank and FCC dollars.

[AlbertaFarmer5]

I don't think anyone doubts a farm with an existing, potentially paid for land base can purchase more with profits from the entire farm. The argument is that the new land likely wouldn't cash flow itself until its paid for in 20 plus years and that is pretty specific to farming. No other industry operates that way. The other part of that equation is likely quite a hit to the personal lifestyle (take home income) of the expanding farmer to make it happen, while non farming peers spend disposable income on other things in life, not land payments.

But haven't we been saying that every year for the last three decades?

[GDR]

But haven't we been saying that every year for the last three decades?

Yes....but maybe one day we (as a group) will wise up! Or maybe the trend will go on forever!

Also, for sure we can farm more acres than we did 30 yrs ago but your profit per acre is likely not much different yet the cost of that same acre has increased 10 fold or more.

I'm not saying its a bad idea to buy land, I'm just saying it lacks economic sense.

[BighatPete]

Hutts here all outside investors for years.

I don't get it, so are the hutts being financed by investors? My impression was they own and work their own land and are very profitable because no overhead.

[BighatPete]

finally the media gave us some explanation

"A Scotiabank letter later confirmed to Dutcyvich and the CEO of 3L that Monette Farms had access to $395 million in credit."

[url]https://www.biv.com/news/economy-law-politics/vancouver-island-man-awarded-12m-in-massive-ranch-deal-gone-sour-10440645[/url]

[Taiga]

They sold 75% of their farm business for over $600M a few years ago. Who even knows who owns what anymore. Very likely foreign money laundering involved.