Land Financing!

[SASKFARMER3]

Lets look at the 30 quarter purchase as emample. Each farm is different but its an example if 30 were available in FoamLake.
Purchase price $1,680,000.00 No real estate just lawyer costs for tranfer an title set up.
Depending on each individuals credit rating and net worth plus cash flow on original operation anywhere from 20 to 40% needed as down stroke.
We will use 30% or 504,000.00 Cash or Clear land. If Cash its easy you will need 20% or less. If its appraised value of land thats up to lenders feeling and could be 30 to 40%. For this example 5 Clear Quarters at 97,000.00 to 133,000.00.
Financing if lock in with lenders could be Variable at what ever best is you can get.

1680000 over 20 years at variable = $122,939.00 or $4,097 a quarter or $25.00 an acre. add taxes and your at 30.00 an acre.
Now why am I using this in marketing. Their is a option for those who have done well to make real money. Not break even with grain.
Money is made in Realestate every day.
Land is depressed in one area and will return again with warm dry weather. Profit potential is a $2,310,000.00.
So is Brazil or Argentina the land of opportunity. Hm
Its right in your own back yard. Maybe but theirs risks lots of them.
Just a thought.

[SASKFARMER3]

Their are other options like FCC loan that you pay interest for 25 years at locked in 5.7 or $3192 a quarter.
Simply like friend in Brazil is saying land is cheap their but Sask is a deal.

[ado089]

I'd be all over that if I had the cash. That same parcel would be bumping up against $5million in my back yard. Maybe it's time to move.

[ado089]

The kicker there is you're also into another $1.5m for machinery.

[cottonpicken]

And another million to seed it

[SASKFARMER3]

Cotton you for one should see the example. Think like Cargill.
Find sucker (sorry I mean young eager farmer who believes every thing he is told) to rent it from you do a iron clad clause that your ahead of most lenders. Let him do the work you wait till land goes back up to normal and then sell it to him or another investor.
That's a business way of seeing low cost to invest return nice.
Now if floods again take yourself and don't seed. Hm $308,000.00. Worse case scenario you have to seed one year seed Canola Wall to wall then sell. Or what ever is the flavor of the year.
Its thinking out side of box. We farmers are always worrying about how our neighbors are doing and how Big guy got big etc. Yes Buying land at 160000 is total useless stupid thing to do. But moving a farm from High valued area to lower maybe works. Trying something new maybe works.
Not saying it makes total sense but opens up discussion and that's good. CWB debate is tiring for week Hudye will stir the pot.

[Wheatking]

I don't get it, people in the area surely know what the land is worth. If it was great productive land the neighbours would be bidding on the land or paying what it is worth. Outside investors may look at the land and pencil everything out to make money every year but the local farmers know the productive capacity of the land and what they can afford to pay to make money, not some ahole like Pike sitting in Calgary with investors money to burn buying land.

If we all payed $30 an acre less for rent we wouldn't have you crying to the govt for the flooded acreage payment.

[cottonpicken]

No i wasnt,getting at anything.Farmland is the only
relestate i would even consider owning.

And yes saskatchewan farmland would be one of
the best investments around.

I was actually snooping around for some property
down in argentina this week,in the salta district,but
you are right its a big big bonus when it is in your
own backyard.

Crazy Idea:someone should start up an investment
house made up entirely of farmers who are
interested in owning more farmland,but not
nessarily doing the work.Risk could be mitigated by
size,multiple locations and the number one reason-
we would know what was good and what was bad.

[furrowtickler]

I agree wheatking, most of the stuff that pike and other 'investors' have bought in this area is below aveage at best and has a productive value far less than most of the good dirt. That $50-60(rent) for that dirt is ridiculas given the productive value $30-35 tops. It is showing up in yields that are 30% or more less than average for the surronding area. There is always a reason local guys wlak away from some of this activity.

[cottonpicken]

Cargill enough?

[cottonpicken]

Whats land worth when wheat is 30 dollars a bushel?

[checking]

When wheat is worth $30.00/bushel, we will be receiving $12.00. Set your sights lower on what you think land will be worth.

[furrowtickler]

What land worth with initials at $1.40/bus for wheat? Cotton you know very well we will never see 1/2 of that price with the current system in our lifetimes. I hope your right but not in Canada.

[ajl]

Down side of this land opportunity in Sask is a long way from port and customers and in a 'designated area'.

[SASKFARMER3]

Not if you miss the BS and Go north or strait south.