One Earth and BS no one wants to buy out aging farmers.

[SASKFARMER3]

Only if it drains into my farm or major water run.

[farmaholic]

Geez, there are some good points in this thread.
Rockpile, you point out some good reasons regarding the old farmers not selling but I think I have a point that land prices correct themselves every once in a while, it is just a matter of time it always recovers but how long it takes depends. Land prices seem to trend up over the looong term.

fjlip, I don't want to sound arrogant but buying land for some farmers that have reached a large net worth and file taxes corporately may not be such a big hurdle. Corporately it is approximately an 85 cent after tax dollar. Some established farmers can be flush with cash and picking up the odd piece at a time isn't too overwhelming for them. Once that certain size is reached it is easier and easier to come up with the money. Unfortunately not everyone is this lucky and it lends itself to the cliche the rich get richer. It takes money to make money. I think I am going to get slammed for this comment. You also posted an excellent quote.

[cottonpicken]

Compare the price of land to the price of gold over the
last fifty years.

You may see they have something in common.

[SASKFARMER3]

Well Land is a real Asset and Gold is a real asset. Some BS company or Bank or house (can be burnt to ground) Land and Gold still survive. Yes I see similarity.

[ado089]

For everyone with $$$ sings in your eyes regarding farming and farm land take your true cost of production and pencil in crop insurance yields and prices, how does that leave you after a couple of years. In my case over a relatively small acreage I would purge about $33k a year. Now that looks pretty good at the end of the day. Next pencil in $8 canola $5 wheat with pretty average 35bu/ac canola and 40bu/ac wheat crop, how does that look? Plunk in a modest 7% prime interest rate, where do you sit. Add the fact that we will never see nutrients below 40 cent/lb again. On my tiny acres there's room for a $500,000 PROFIT swing. How many of you land bulls know how to work a spreadsheet? Sometimes I wonder if I would be better to sell on these stupid highs and buy back land when (or maybe where) things cool. The only hitch in that plan is idians and hutterites, that land is gone forever.

[gustgd]

http://www.farmlandinvestor.ca/images/stories/documents/financials/assiniboia%20farmland%20-%20frc%20report.pdf


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