MONETTE FARMS land parcels for sale

[AlbertaFarmer5]

Total farm debt ( land, equipment, infrastructure, livestock, quota, inputs etc) Works out to $1135 per deeded acre of farmland aross the country. HIgher than I would have expected since most land has no mortgage. Monettes debt would work out to $2500 per acre farmed. Not much more than double the national average. Compared to the national average, that doesn't seem extreme for an expanding operation, considering that the average is comprised of a lot of mature farms with little or no debt, dragging the average down.

Canada wide, At 5% interest, that would be ~$57 per acre per year in interest.

[FarmJunkie]

This is the seventies all over again….which led to the wonderful eighties. Stagflation then deflation then depression

[makar]

This is the seventies all over again….which led to the wonderful eighties. Stagflation then deflation then depression

There is less and less of us that remember those days. The rest are oblivious.

[LEP]

Total farm debt ( land, equipment, infrastructure, livestock, quota, inputs etc) Works out to $1135 per deeded acre of farmland aross the country. HIgher than I would have expected since most land has no mortgage. Monettes debt would work out to $2500 per acre farmed. Not much more than double the national average. Compared to the national average, that doesn't seem extreme for an expanding operation, considering that the average is comprised of a lot of mature farms with little or no debt, dragging the average down.

Canada wide, At 5% interest, that would be ~$57 per acre per year in interest.

There is an awful lot of intensive livestock debt across Canada.

[AlbertaFarmer5]

I couldn't find stats breaking it down by sector.
No doubt their debt per acre w wood dwarf the broad acre farms. Skewing the average much higher.

[Old Cowzilla]

Total farm debt ( land, equipment, infrastructure, livestock, quota, inputs etc) Works out to $1135 per deeded acre of farmland aross the country. HIgher than I would have expected since most land has no mortgage. Monettes debt would work out to $2500 per acre farmed. Not much more than double the national average. Compared to the national average, that doesn't seem extreme for an expanding operation, considering that the average is comprised of a lot of mature farms with little or no debt, dragging the average down.

Canada wide, At 5% interest, that would be ~$57 per acre per year in interest.

And they say we are just entering the biggest land transfer ever seen in ag in the next 10 years as more of the aged farmers retire.

[DaneG]

Both $1135 and $2500 are wild dept $/ac couldn’t imagine servicing either one on this operation, move the decimal over one space then it would be possible!

[AlbertaFarmer5]

I just checked my own numbers. We are in a very expensive area. Have been expanding continuously, mostly by buying land.
Total debt of $330 per acre. Total interest spread over all acres of $10.

I'm sure long since established multi-generation farms would have lower numbers than that wouldn't they? Or am I underestimating how much of the equipment, infrastructure, livestock and inputs are being financed on established farms?

Just very little land changing hands in recent decades for there to be big debt on land.

[AlbertaFarmer5]

And they say we are just entering the biggest land transfer ever seen in ag in the next 10 years as more of the aged farmers retire.

I've been hearing variations of that theme for as long as I can remember. Especially back when there was no money to be made in farming. Yet when I look around my neighborhood, the generations have changed almost entirely without so much as a hiccup. And the new generation for the most part is The underdogs, not who you would have thought it would be.

[farmaholic]

Interest or income tax, pick your poison.
....need both, interest expense and tax paid cash for principal payment portion.