Show you ag. appraisal superiority.

[ALLFARMER]

Ya it's a little ways up here....-35 already tonight.

Been up north 10 years and have not regretted it
one bit. Everyone I know who went farming
around Westlock / Legal has quit already. They
farmed beside the multi million dollar old money
farmers. These guys looked over the fence saw
the new fancy equipment, the land base old guys
have and gave up.

Did you get your cows preg checked?
What's 1200 acres of connected land worth in
your area?

[forage]

Wish this is all I had to worry about/ the price of a mixer mill. Read bill 2 and then give your head a shake.

[grassfarmer]

forage, I get your point but remember also you
should only worry about things you can control. Try
to influence the outcome to a positive result on
things you dislike yes - but don't put life on hold and
set aside making decisions you are responsible for
and in complete control of.

Allfarmer, I have enough equity tied up in the land I
own, renting additional land in my area is a much
better deal. We rent 1200 that is in close proximity,
some adjoining. The AB average land appreciation
rate of 4% is a rather poor investment when compared
to stock market potential. I like to separate out in my
mind what is the investment value of owning land
versus how much the cost of running cows on the
land is. If you don't it's too easy to fudge the figures
and excuse low cow herd profitability by saying "my
land is appreciating" so it's OK. A leading cause of
farmers being asset rich/cash poor.

I don't pay the vet to preg check cows, it's easy
enough to identify them once they are weaned - by
the time i've confirmed them they are coming off
grass in good shape in late January when the market
is always higher. I usually fail to identify 1 per year
that's open likely because it's not cycling but the cost
of wintering her (and selling her into a higher market
still) is substantially less than paying the vet/running
the cows through the chute.

[ASRG]

grassfarmer: Agree 100% with you on the preg check thing. If you are feeding cows/checking cows daily not too hard to pick up the opens.
I like your take on land appreciation.....too bad more people don't do their homework!

[ALLFARMER]

The key with land and everything else is to buy it
for the right amount. Called Kello Bilt in Red Deer
today they wanted 24k for the disk but said I could
have it for 22, bought it at the dealer in town on
the lot for 20 I buy my own Christmas gifts

[grassfarmer]

How do you know what the "right amount" for
land is if you have no idea of what it is capable
of producing, what you are going to do with it
and what the economics of what you are going
to do with it are?
Buying cheap and saying you are rich because
neighbouring land sells higher 6 months later
isn't real - its purely speculative - until you sell
your land and cash the cheque the enhanced
valuation isn't real money.

[smcgrath76]

GF - that extra valuation is important
because it lets you borrow your way into
trouble (LOL).
AF - around here - if it came for sale -
1200 acres would run around $3 million.
Or if you had it sitting around you could
put that same money in ING and generate
$75K a year (2.5%), or you could put it
into bonds or dividend paying stocks, or
even into cows that generate revenue.

[ALLFARMER]

That's where your wrong....it actually is. The
banks will appraise your land and lend you up to
85% of what it's worth.

Farmers don't have to be asset rich cash poor
anymore.

Not something I would do but I do know farmers
who have.

[ALLFARMER]

Also your using the Income Approach to Appraisal
which in Alberta lots and lots of land won't apply
to. Buy a quarter of land anywhere near an urban
area and try to make the payments on it off the
profit made farming it....not gunna work.

Direct Comparison approach to real estate
valuation is the way things are done.

[ALLFARMER]

SMC buddy don't tell the wife .....it's out little
secret. If your wife ever found out what your worth
it's game over for the farm.

[ALLFARMER]

SMC do you know Wayne and Lucy Sampson
from Lloydminister? Kind of in your area. Wayne
sold Herford bulls for years. Land in your and their
area is getting pretty pricey. Wayne says they've
switched from ranching and selling bulls to now
being property developers.

[grassfarmer]

I think the irony of your lol was lost Sean.