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ajl
Nov 26, 2020 | 10:46 1 Hammer price on home quarter miles NW of Bruderheim AB $725000. This includes an acreage within commuting distance of a major industrial area with older home, garage and shop. Land has $26000 of SLR. What that is worth these days with some companies paying and others not who, knows. 147 acres cultivated which would be true when land not flooded as badly as this year but generally good land in that area. Here in AB, there are things attached to land frequently that are hard to value but I would think that this would be down from 5 years ago when bare quarters in that area would fetch that sort of price. I watch any real estate auction that I can and find prices usually less than the rumored price. Crown land sale in northern SK closing shortly on McDougall today. Reply With Quote
Nov 26, 2020 | 11:14 2 I'm not sure how accurate gauge auction prices are for land values. Hey can you go to either extreme as opposed to traditional sales, Which can take as much or as little time as necessary to find the actual value.

Eliminated from Land Auctions by the Lack of a subject to financing option? If you don't have the money sitting in the bank do you really want to spend the application fee ahead of time for every auction or tender that comes up, especially when some state the highest bid may not be accepted?

And on the other side, when they lead to bidding wars, and prices go to the other extreme.
A few sold by auction here lately, at prices above what we have bought through realtors, or land still sitting unsold is listed at. Reply With Quote
Ab7
Nov 26, 2020 | 16:18 3 Can’t even find a good quarter to buy here.
Just a few poor quarters on mls. Central AB.
750000$ + per quarter and sold in a week if decent land Reply With Quote
GDR
Nov 26, 2020 | 22:53 4 Wish there were more land auctions locally so you could see the amount of interest and prices. Got one quarter a couple miles away gonna go in December but not very good land so dont expect much.

How does the commission compare to using a realtor? Would be kinda stressful but sure would be the way to get it over with. Reply With Quote
ajl
Nov 27, 2020 | 08:05 5 Clhbid had a couple of parcels in the Vegreville area not make their opening bid this summer as well. Both were poorer pieces as well but both were seeded this year so had been farmed. Guess the existing renter gets them for another year. The land rent paid on such parcels is zero which is why they were for sale in the first place. Actual paid rents are less than rumored as well. NW AB is becoming questionable as a viable farming region with the weather gone crazy so that is starting to show up in prices, although crops east of Veg were relatively good this season. Not records by any means but not bad. With credit availability overwhelming these days it is likely that financing is not a problem for any halfway viable buyer. This info does not get info an FCC farmland values report of course so they will be the last to know of a farmland values decline. Reply With Quote
Dec 2, 2020 | 07:44 6 That price is double and then some, of anything that sells in our neck of the woods! However there is usually more rain in that part of the world than in the dry SW corner of SK where we live. I would suspect the land is better also. I will tell you one thing: If somebody offered that price around here there would be a LOOOTTT of land up for sale.

Just my opinion, and good for the people getting that price. It is nice to get paid well after a lifetime of hard work. Reply With Quote
  • 1 Like


  • Dec 2, 2020 | 08:11 7
    Quote Originally Posted by Ab7 View Post
    Can’t even find a good quarter to buy here.
    Just a few poor quarters on mls. Central AB.
    750000$ + per quarter and sold in a week if decent land
    Yes I agree basically $5000 an acre here. Land just down the road sold for that this summer. Bare land, no slr, roughly 135 cultivated acres and had a 4 acre acreage out of it. Reply With Quote
    Dec 2, 2020 | 08:48 8 In my area in SE Sask prices have flattened a bit but prices are about three times what they were 25 years ago. Compared to some places we are pretty cheap with $1000 - $1500 per acre pretty common. In some cases existing surface leases are kept by the seller but what is common is the leases flip to the buyer after a period of years. Reply With Quote
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  • Dec 2, 2020 | 10:40 9 Five g an acre? I’d bite. Ha. I’d bite really hard. Why the heck would one farm if you can get out for that kind of money? I just don’t see how it makes senses. Or cents? Reply With Quote
    blackpowder's Avatar Dec 2, 2020 | 13:04 10
    Quote Originally Posted by Sheepwheat View Post
    Five g an acre? I’d bite. Ha. I’d bite really hard. Why the heck would one farm if you can get out for that kind of money? I just don’t see how it makes senses. Or cents?
    So if you were offered that right now you'd walk away?? Money talks Sheep.
    I don't think you would based on your posts. Reply With Quote
    Dec 2, 2020 | 15:12 11
    Quote Originally Posted by blackpowder View Post
    So if you were offered that right now you'd walk away?? Money talks Sheep.
    I don't think you would based on your posts.
    I would sell a couple outliers for sure. Keep the chunk at home. Play farm with my millionaire status. Fence her all! Plant more trees! Lol Reply With Quote
    Dec 2, 2020 | 15:34 12
    Quote Originally Posted by Sheepwheat View Post
    I would sell a couple outliers for sure. Keep the chunk at home. Play farm with my millionaire status. Fence her all! Plant more trees! Lol
    if the doomsayers on here are right and cash will become worthless and the stock market is overvalued, and real estate is dropping because of the upcoming economic crash, what would you do with that money from the sale?
    Last edited by dmlfarmer; Dec 2, 2020 at 15:40.
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    Dec 2, 2020 | 15:54 13
    Quote Originally Posted by dmlfarmer View Post
    if the doomsayers on here are right and cash will become worthless and the stock market is overvalued, and real estate is dropping because of the upcoming economic crash, what would you do with that money from the sale?
    Lol. I think I’d buy fences, forage seeds galore, and a shwack of sheep. Buy many fuel tanks and fill them to the brim. Same with oil. Ammunition/reloading equipment, and all the guns to go with it. Get a modest solar panel setup. Would continue living like a king way out here.

    Any money left over, I would give to my favorite charity that works to help the poor in Honduras. They are in dire straits right now being hit with two nasty hurricanes. We think we have problems? There’s some real hurt in other places that could sure use the help. We are such a materialistic bunch as a whole.

    Ahh heck, maybe if money was useless, I would just give it all away if I knew far enough ahead of time... I don’t have a whole lotta needs. Gimme the ammo and guns, I’d make do. Lol Reply With Quote
  • 1 Like


  • blackpowder's Avatar Dec 2, 2020 | 17:53 14
    Quote Originally Posted by dmlfarmer View Post
    if the doomsayers on here are right and cash will become worthless and the stock market is overvalued, and real estate is dropping because of the upcoming economic crash, what would you do with that money from the sale?
    I would pay off some debt. The rest would have to wait.
    Problem is, once you're out of a particular asset class, you're out.
    Completely out of real property and you're at the mercy of inflation. Reply With Quote
    Dec 2, 2020 | 18:38 15
    Quote Originally Posted by blackpowder View Post
    So if you were offered that right now you'd walk away?? Money talks Sheep.
    I don't think you would based on your posts.
    I think if I was in an area paying 5k per cultivated acre I’d consider selling some and buying 3x the acres in an area where you can pay 1200-1500. Reply With Quote

  • GDR
    Dec 2, 2020 | 20:32 16
    Quote Originally Posted by Oliver88 View Post
    I think if I was in an area paying 5k per cultivated acre I’d consider selling some and buying 3x the acres in an area where you can pay 1200-1500.

    Could be opportunities but do you not think the cheaper areas are cheaper for a reason? Could get yourself in a worse position. Are they cheaper because they net less or is it because of other less appealing factors such as location, future potential, climate? It is too bad its not all the same but modern farming has narrowed the gap a bunch. Reply With Quote
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  • Dec 2, 2020 | 22:01 17 In some cases farmers have to stop thinking land only has agricultural value.

    Acreage potential.
    Easement potential
    Urban development
    Aggregate potential
    Speculative potential

    "Agriculturally", land's ability to pay for itself hasn't kept pace with the parabolic appreciation in land prices some places, while others were already at that stage.

    That's what alot of loose cash sloshing around looking for a home can do. Reply With Quote
    Dec 2, 2020 | 23:04 18
    Quote Originally Posted by GDR View Post
    Could be opportunities but do you not think the cheaper areas are cheaper for a reason? Could get yourself in a worse position. Are they cheaper because they net less or is it because of other less appealing factors such as location, future potential, climate? It is too bad its not all the same but modern farming has narrowed the gap a bunch.
    It would depend on the example. The example discussed above has Ab7 mentioning he can’t buy a quarter of land for $750,000 in central AB. I’m assuming the factors listed are all factors building this land price.
    He can’t expand because a section is $3million. There is a lot of areas where farmland is priced significantly lower than this level and is quality land but will be further from a major city, etc. Reply With Quote
  • 1 Like


  • Dec 2, 2020 | 23:06 19 I left the county or red deer in 73 land was $200/acre some with livable buildings some bare land I,didnt see any way to pay for it,bought here nw edmonton $40/acre now probably 1400 to 2000/acre 4000% increase.
    RedDeer would need over $8000/acre to compare to this land,for inflation of course reddeer land is better land by far. Reply With Quote
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  • ajl
    Dec 3, 2020 | 16:13 20
    Quote Originally Posted by Horse View Post
    I left the county or red deer in 73 land was $200/acre some with livable buildings some bare land I,didnt see any way to pay for it,bought here nw edmonton $40/acre now probably 1400 to 2000/acre 4000% increase.
    RedDeer would need over $8000/acre to compare to this land,for inflation of course reddeer land is better land by far.
    If you can actually get that for boonyville, is it not time to put somebody else's name on some parcels? Mediocre land is on its way down. I am a nobody and am picking up rental ground now so will be seeding some more land in the spring. Have to be careful to keep rent down so that the operator makes some money though.
    Last edited by ajl; Dec 3, 2020 at 16:26.
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    Dec 3, 2020 | 16:33 21 Its only going one way.....



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    Sarcasm???, Reply With Quote
    Dec 3, 2020 | 16:44 22 Down? Why?
    Grain prices better than they’ve been again in years.
    Nothing else stable to invest in. Think some are dreaming if they think good grain land is going to drop anytime soon.
    I’d bet on a big increase before a decrease anytime soon.
    Of course that’s an opinion that is worth what it cost.... Reply With Quote
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  • Dec 3, 2020 | 16:49 23 Do the indexing of equipment cost versus the index of grain from let's say 1975...

    We are not gaining...

    Combine in 1975 - 36000
    Combine in 2020 - 600000

    Wheat in 1975 ....$5.00
    Wheat in 2020. ...$6.00

    36000 indexed 174500
    5 dollars indexed 24.75
    Last edited by bucket; Dec 3, 2020 at 16:53.
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    Dec 3, 2020 | 17:04 24
    Quote Originally Posted by quadtrac View Post
    Down? Why?
    Grain prices better than they’ve been again in years.
    Nothing else stable to invest in. Think some are dreaming if they think good grain land is going to drop anytime soon.
    I’d bet on a big increase before a decrease anytime soon.
    Of course that’s an opinion that is worth what it cost....
    The bolded words are probably key.

    Around here, land prices were artificially high compared to their productive potential due to outside money. People wanting quarter section farms, weekend place, investment, place for hunting, quading etc. That casued recreational land to sell higher then agricultural land.

    Their money tree dried up along with the price of oil. The premium seems to have gone the other way again. Reply With Quote