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FCC Farmland Report

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    FCC Farmland Report

    Well it looks like double-digit increases for most of Saskatchewan again in 2017.

    https://www.fcc-fac.ca/en/ag-knowledge/ag-economics/farmland-values-report.html

    #2
    That surprised me a little with costs as high as they are and grain prices where they are.


    I am not sure where the optimism is coming from but land here just keeps climbing!

    Comment


      #3
      Gotta get it all or the neighbor will! Can’t have that happen. Mystifying to me.

      Comment


        #4
        Too much credit FCC. How big will the burst be this time?

        Comment


          #5
          What was more interesting was the fact that land prices have stalled out in most of eastern SK and north central AB which is my region. I would say that is realistic as the poorer types are not selling around here and the better land has been flat at best the past couple years. The 2018 report should show a decline around here and these days a GIC yields in the 3.5% range now outdo farmland as an investment.

          Comment


            #6
            Originally posted by SWFarmer View Post
            Well it looks like double-digit increases for most of Saskatchewan again in 2017.

            https://www.fcc-fac.ca/en/ag-knowledge/ag-economics/farmland-values-report.html
            Quite a difference between west SK and east SK.
            15% increase on west side of province and 0-1% in east half.

            Comment


              #7
              Originally posted by Oliver88 View Post
              Quite a difference between west SK and east SK.
              15% increase on west side of province and 0-1% in east half.
              Would it be safe to say that a return to "normal" rainfall levels in each respective area would cause those prices to go the opposite directions? Is this a reflection of the west side now becoming a garden of eden with higher rainfall, and the east side becoming a lake?

              Comment


                #8
                Well said Alberta that is the truth in a nutshell.

                While we flooded the dry areas of Sask made out like bandits and the farmers forgot life in Saskatchewan.

                The only good thing was maybe we didn't overspend on the east side because the excess rain made sure we weren't moving forward but back.

                If multi-million dollar farms on the east side subsidized by Toronto or Calgary etc couldn't make it kind of hard to increase the value of the land.

                Comment


                  #9
                  maybe some of you aren't old enough , these are the same kind of reports we were reading in the early eighties just before the shit hit the fan .dont get to close when you are looking over the edge of that cliff .
                  we heard all the same shit then ; not making anymore land , land never drops . the last stage of the cycle is so investors can get their money out . gonna be some long faced farmers at the end of this run !
                  land prices sure haven't dropped in this "east half of province" , up another 10%.
                  Last edited by caseih; May 2, 2018, 06:12.

                  Comment


                    #10
                    Alberta money from oil on the west side. It's not about crops. Oil supposedly was floundering so speculation on oil development on the east central side declined so too speculation on that land.
                    All laughable as the oil industry is rollin on dough that we re supplying. Hahaha

                    FCC would they even print a lower land value considering who they've borrowed to? Never.

                    Comment


                      #11
                      Bingo!

                      It was all bullshit then and it's the same now.

                      Farmers are the last sitting holding the reigns

                      And this time FCC and the FEds and Banks won't help out.

                      Banks have most tied up so bad they won't believe how bad they're tied up. Companies were designed to get farms shut down when the shit hit the fan. Not for tax planning. It was to shut them down.

                      FCC cant takes 525000 lands and says oh MR farmer rent it for 40 an acre and we will let you buy it back for 150000 in five years. Yea who is going to cover that the Gov of Canada. Hell Trudeau has us so broke.

                      The hand is on the Handle if this crop freezes the landscape will change dramatically.

                      Read history it happened before and it's going to happen again.

                      Comment


                        #12
                        ......speaking of FCC printing reports.....the only thing they've been printing is money and lending it out to support these artificially high land prices, prices that have risen above the land's ability to pay for itself based on its productive capacity.

                        A reality "check" might be in the mail in the near future.
                        Last edited by farmaholic; May 2, 2018, 06:22.

                        Comment


                          #13
                          ....oh, but that's ok, take some cash from the bank and BUY it down to the point it pays for itself. Or use "paid for" dirt to subsidize it.

                          Or better yet, buy it with investor money!

                          It happened right beside me, someone's money (an investor) sloshing around looking for a home. Some of the highest prices paid in the neighborhood, paid for with money where I bet not a cent of it was made in production agriculture. Then people fall over each other and themselves to farm it providing the investor with a rate of return better than any money in the bank can earn. The "BIG appreciation" play is over as far as I'm concerned. But that's ok, there's always tennent farmers who will farm it for them. I'm not making it worth their while owning it! Nope, too old and grumpy and lazy.

                          Comment


                            #14
                            Originally posted by the big wheel View Post
                            Alberta money from oil on the west side. It's not about crops. Oil supposedly was floundering so speculation on oil development on the east central side declined so too speculation on that land.
                            All laughable as the oil industry is rollin on dough that we re supplying. Hahaha

                            FCC would they even print a lower land value considering who they've borrowed to? Never.
                            Good point Big Wheel. It would be detrimental for FCC to report lower famland values. Extremely detrmental if they reported negative growth. FCC (all lenders for that matter) needs to keep the party going. They lend money on debt/asset. If the land assets drop in value this would be the tipping point/Minsky moment some people are predicting.
                            Its ok to be part of a market correction but they certainly do not want to be the ones to initiate it.
                            I dont mean to be spiteful but I sure would like to get on with a correction. The longer this drags out, the worse the end result will be.

                            Comment


                              #15
                              Land will always be there what ever the cost. Iron value on the other hand EVAPORATES just sitting there, in the shed, worse outdoors. That is the biggest risk, half a million for a drill combo, worth half that in 2 years! The market changes and you are TOO SMALL or old TECH. Seems nobody that needs a 70-80' drill buys used. Think about resale when signing the papers....

                              In the 30's farmers ABANDONED W and S farms and moved up into this area, history could repeat that too. NO DROUGHT risk is less stress,

                              Comment

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