Selling land for earlier retirement but how to hold cash?

[Ronski]

If a person is worried about inflation and has unneeded cash and/or inventory that can sit for an extended time should they buy gold/silver near all time highs, buy stocks, go long the futures market with the plan on rolling months for a few years, or keep undervalued grain in the bin?
This is after maxing TFSA, paying bills, prebuying inputs etc.
With land trading at 12,000/acre and Canola grossing $720/acre I am? looking at downsizing 7 years earlier than I had planned. Anybody remember the 80's when land crashed for 15 years? I don't see much upside in the market and lots of downside unless inflation kicks in hard.
I could even rent potato ground and grain farm it if I want to keep my acres the same (12000/ac @ 4% return is 480 so I could pay 250/acre rent and still have return on dividend stocks)

[furrowtickler]

Ya better jump on that quick before yields drop below 40 and canola struggles to maintain $12
Run those numbers , cause that’s probably the 5 year average on stats Can for Sask
take the money and run like heck cause when reality hits , it won’t be fun .
hopefully your area does not see the next 5 years in drought , in a row , there will be an awful lot of bankruptcies
Not being rude , but if that’s reality there , take the money and get out cause when , not if you get a 3-5 year downturn to below average yields, all hell will break loose.

[Ronski]

Ya better jump on that quick before yields drop below 40 and canola struggles to maintain $12
Run those numbers , cause that’s probably the 5 year average on stats Can for Sask
take the money and run like heck cause when reality hits , it won’t be fun .
hopefully your area does not see the next 5 years in drought , in a row , there will be an awful lot of bankruptcies
Not being rude , but if that’s reality there , take the money and get out cause when , not if you get a 3-5 year downturn to below average yields, all hell will break loose.

You aren't being rude. Thats exactly what I am afraid of. I was a teen in the 80s but I remember my parents talking about mortgage payments at 15 plus percent. In 1993 my beginning farmer Afsc land loan was at 9%, that would sink a lot of people today.

There are a lot of dairies and dutchmen here, if supply management stumbles or interest rates rise these prices can't hold and I don't want to go back to work in the oilpatch so it's time to cash in some chips.

[crusher]

Do what ever lowers your stress level. I sold some land 18 years ago for good money and put in GIC's and mostly US market. We now have a pretty nice nest egg. Time in the market, not timing the market has worked in our favour.

[shtferbrains]

You should consider some competent professional advisor that can tell you exactly how much you are left with after the government takes their share.
Tax avoidance will be more dollars than investment income in the short term.
Not sure how selling land has many options if it is held in you personall names.
Kind of drifts into estate planning

[fjlip]

A Million for each or both if couple, then Gov wants a share...lucky it's this high a value, everyone gets rich!

[Grain Farmer]

Land only worth that amount if people sell it.
like the 25 dollar canola that's still in the bin.
Is it still worth 25 bucks?

[goalieguy847]

1.25 million each capital gains exemption. That is one thing trudeau got right...

[Rareearth]

USA big beautiful tax bill, - estate and inheritance tax changes for 2025


When it comes to gift and estate taxes, Dobbs points out a big change under the Internal Revenue Services (IRS) section.

“The new exemption as of Jan. 1, 2026, will be $15 million per person, or $30 million for a married couple,” she said at the Keystone Cooperatives Co-op Classic in Valparaiso, Ind. “It is one exemption. You either use it during your lifetime to make gifts, or you have it available at death to shield inheritances. You don’t get two.”

This is an increase from $13,990,000 per person in 2025, and a welcome relief from the anticipated “drop off the cliff to around $7 million per person that was looming,” Dobbs adds.
?

[makar]

1.25 million each capital gains exemption. That is one thing trudeau got right...

So a half section of marginal land.