Land prices

[Jagfarms]

What are the land prices in your area doing?

About 4 years ago the land prices were about $500
acre and last year they were about $700 acre and
then they dropped down in the spring to about
$600 acre and now I heard there could be some
land selling for over $1000 acre this fall. I am
amazed with the the grain prices falling that the
price of land would not go down as well.
This is land in Southwest Sask where we are lucky
to get more than 8 inches of rain in the farming
season.

[furrowtickler]

Red Lentil country?

[JDGreen]

ask yourself this question Jag.. How much would you want for your land?? and would you sell yours for less??

[Jagfarms]

I am happy for the farmers that are selling it at that price.
It makes it hard for young farmers to get started or expand with land prices at $1000 acre. Could take a very long time to pay for if lentil prices go down to less than 20 cents a pound and with $5 durum. Get a couple of droughts and interest rates go up.
If the lentil price would be over 30 cents a pound in the future and durum and wheat over $8 bu $1000 an acre would be a reasonable price for land.

[parsley]

http://www.farmlandinvestmentpartnership.com/pdfs/FIP%20Saskatchewan.pdf

[Jagfarms]

If you pay $160,000 for a quarter and put 25% down
and borrow the rest over 25 years your payments
would be over $9000 a year. Would be lucky a lot of
years after you pay for the input costs to have enough
to make to payments for the land let alone any other
payments you may have make.
If you have a pile of money in the bank it is ok but to
borrow money for land at $1000 acre with out much
of a down payment would be very risky the way I see
it.

[dave4441]

$1000 happening in your area JAG?? Actually happening? Or just a home quarter/half or something. Have not really heard of anything trading, let alone that high.

[Jagfarms]

That is what I have been hearing. One farmer may
have sold 17 quarters ranging in price from $750 to
$1000 quarter. Do not know for sure but that is what
I have been hearing. I have heard of other farmers
being offered $750 acre but wont sell for that. I
think the land for $1000 acre has gas wells on it so
there is some gas well revenue.

[dave4441]

Owner financed with no interest? Gotta be a catch on this one. Gas revenue is a bunch of nothing. We paid $562/ac three years ago for 6 quarters and some thought we had lost our marbles. I would not consider that number. Hutterite colony splitting would make some sense at that value.

[charliep]

cottonpicken

Perhaps a life experience you need is too have a camera and lights
poked in your face for 6 minutes and be asked to deal with a topic.
Camera rolls and what you say is recorded. You have 6 minutes and no
more to make your point. Not in any way, shape or form easy. Have had
the privilege of sharing an adult pop or two with Danny. Suspect you
would have an interesting conversation with him where there would be
more agreement than argument.

[JDGreen]

it is 900-1000/an acre here .. Any less and you buy nothing.. And yes this is red lentil ground and yes that is why its high and yes it works at the current red lentil prices and yes I think it is retarded and yes i have paid these prices and no it will not take 25 years to pay for itself when first crop off grosses 600-700/acre with less than 150/acre into it.. Example 2000 Ib red crop in 2008 and 50 bpa canola crop in 2009 on same 1/4. Land has grossed over 1100/acre in first 2 years..

[SASKFARMER3]

Cupar area has i believe 7 quarters at 1000 an acre. Its on Lane reality.

[furrowtickler]

Even with free money, Jag your right on, for that part of the world that is way out to lunch. That $1000/ac is the number floating here as well - pushed by realestate agents. Fun for the seller if you find someone stupid enough to buy. Even the most basic math shows this will never work with average prices AND average yeilds, in 80% of Sask.

[Burbert]

$1,000.00 per acre in Albertie. Lottsa buyers too!! Acreages, farm families excapin the city life back to the farm, cheaper to live and work in small towns etc.. Yup $1,ooo,oo per acre is reality.... Farmers kin aford it, borrow, their combeans and tracteys are worth millions after all, come on get wit the program, dirt is no longer cheep!!!!

[ajl]

Land sold here this fall(South AB) for 800 per acre for medium at best quality. Sand, salinity, and blowout spots. I think land will continue to move higher because of inflation and nothing else to do. There are whole segments of our economy that have disappeared in this recession that will not ever be coming back. Why manufacture here when the Chinese do it for free? So if you were not smart enough to get on the governments payroll already, farming is the only alternative. In Europe farming hasn't generated a return for decades now except the farmers land base goes up in price. I expect much the same will happen here.