Watch this

[cottonpicken]

Frickin rain

You can stick your head in the sand or see whats coming down the pipe.

http://watch.bnn.ca/#clip474314

Nothing to do with rain.

[bucket]

cotton

He talks about productive capacity.

In the states a 150bpa corn crop will pay better than 1100 dollars an acre gross.

A soybean crop at 50 bpa pays out at 650 gross.

The best yielding canola at 50 bpa barely matches that and the conditions have to be near perfect. Wheat, peas flax, durum won't come close to either soybean or corn in the states.

So why does he compare productive capacity to those commodities in the states?

[Hopperbin]

Why would a farmer rent land from an investor group such as this so that the investor group can make the gains that they want. Somehow something is off kilter here. One thing for sure if this investment company can make money then we farmers are set. Cotton I think land is set for a correction up, we have seen it in our area this last year. But the locals are out of the market. So what are we worth per hour if these investment companies need to hire completely inexperienced workers for 30 dollars per hour. What is the guy worth that is running the show?

[begood]

Do you really want to run someone else's show? Isn't that an oxymoron? By even considering participating in someone else's investor schemes; you are creating a modern day serfdom. It's the old story about whether you want to sail your own ship. When we make that decision; then why not even be so bold as to say that the voyage will be made according to the captain's rules?
I totally agree that if there is enough money in farming to satisfy investment farm owners; then there is a bright future for real producers.

[sumdumguy]

I wonder if they will survive because hired help
without a vested interest is not going to have the
desire to put the management into the equation
that is needed. With high inputs there is not a lot
of room for poor management.

[furrowtickler]

One group has failed miserably here already. But whatever, big money can make it rain, not rain, not freeze, never have insects or desease. Money males that all go away - lol.

[hobbyfrmr]

I have some super saturated/flooded land to sell. I will plant only half of it this year. After the last couple of days of fixing and battling over wonky grain unloads at the mill, I could easily throw in the towel. $60/acre cash rent would cover the mortgage/taxes and I could get a regular job. It did not take me long to go from pleasureable farming activites to total meltdown. Its all perspective, but yet, I still get pretty wound up in the prime time. I can see how guys get heart attacks.

[hedgehog]

its great entertainment when the townies start farming!

[burnt]

This thread covers it all. From investors holding farmland to big but frustrated private owners to small holders frustrated by the same tough realities . .

begood, the sad truth is that there are guys lined up to run those investment holding operations. They are usually guys that failed to make their own immense dreams come true and they see managing a "big operation" as their chance at at least "visual" redemption.

Wow. Just wow.

However, I differ with your conclusion that if investment farms can make it go, there will be a bright future for real farmers.

Not necessarily so, as was demonstrated by a group that tried it here in Southern Ontario some years ago. Even with the rapid increase in the value of their land base, they went broke sometime after their vaunted "10 year plan" ended. 8~}

Need I say that few tears were shed by the locals.

[cottonpicken]

We could be in a special situation where there are
simply far to few farmers and especially farm
managers for the land to go as high as this guy
thinks,i don't know,but land values are going up.

[cottonpicken]

His production capacity model valuation whatcha ma
call it was just a pencil head trying to make sence of
something he doesn't understand.

[hobbyfrmr]

furrow has a point. You can make anything work if you throw money at it. These guys have nothing but money. They hire agrologists/consultants like the local big operators here, it should work. The 25,000 acre guy becomes the well paid manager of a 40,000 acre farm. etc. He would get less reward in the end, but he can do the work and his risk is carried by the investment company. When a person gets around that 50 mark and has been risking for 25 years, these guys are the ticket to retire a millionaire and have employment doing exactly what they know until the investors money leaves town.