New Super Farms!

[SASKFARMER3]

Ok here was todays chat with farmers
about these new Super Farmers.
"OK" lets call a spade a spade. Investor
money and trying to play.
All their mission statements state how
they will work with the industries top
producers to run these new super farms
in a ethical, enviromentaly friendly
way.
What the hell have all of us been doing
for the last 100 years just sitting
around twideling our thumbs.
Its funny conversation turned to how is
it that the best farmers in most areas
are dead set against these supper farms
want nothing to do with them.
Hm could it be that we know better than
paying someone 8% return on their money
when they over pay buying the neighbors
farm.
I have no problem paying a decent rent
for land but over paying a land company
80 plus a acre to farm is just plain
stupid.
Productive value is out the window and
as long as the worst farmers in the
district try to keep up by paying
outragous land rents all power to them.
Smart farmers will survive.
Then the topic turned to Europe where
years back insurance companies etc
purchased land as the new world venture.
Funny how all of these so called land
companies are now gone and farmers are
back in control.
Simply its way different from Bay street
to shit hole saskatchewan. Some of these
big boys will find out.
But isnt it funny how the Land company
hires the supposed super farmers to farm
their land then provides advise on
farming the land, Wink wink. Yet the
farmer ends his farming carear working
for the land company. Some great advise.
And people pay for this kind of advise
it just amazes me.
So again its funny how Normal every day
farmer stays away from the land
companies Hm maybe he knows something
that they dont.

[bgmb]

Let me ask you this sask?

If a prime 1000 acre parcel came up for sale near you and you had to pay 200 bucks an acre more than you thought it was worth to keep it out of investor/outside hands would you?

If you say no you are full of shit casue you can borrow money locked in at 5% for 20 years that's only 10 grand per year more spread across the many thousand acres you farm its NOTHING!!

[malta]

I predict a short life span for these funds. As the economy recovers the 2-3% margin offered by farming will not be sufficient to pay the fund managers and offer investors the return they can get elsewhere. Right now investors are looking for stability and a hedge against currency devaluation. Land may fit the bill for now, on the other hand land prices are at historic highs.

[SASKFARMER3]

You got it correct I would pay more for
a 1000 acres to keep it from these
parasites if it was land I rent or land
that would join land I already own. But
latest sale took place for 279000 a
quarter in our RM and Pike will farm it.
Taking just 10 quarters dividing by 40
that are paid for adds $69000 of debt to
a paid for farm. Hm good decision or ps
poor.
Its like having a coach for the farm is
it a fad or does it make you extra money
to pay the coach and add big dollars to
your bottom line. Just saying.

[bgmb]

Wow 280,000 a quarter you have got to be shitting me. What did it work out to per cultivated acre? makes me want to buy more? is that Regina clay?

[SASKFARMER3]

No thats by Abernethy, Guy came from
England some 10 years ago and decided he
had enough. At that value I probably
would have enough. Their was some
excellent ground and some that the
Valley cuts into. But well drained no
stones etc. OK yard shop and house.
Caused another guy to put his up while I
was away and it sold to a chicken farmer
from BC. He sold his farm in Ontario,
Kept the BC farm and has now land in
Saskatchewan. Not quite as high but over
200000. It has sloughs and not as well
drained.

[buzz]

SF3,

The advantage they have is access to low cost capital right now and it is other people's money so they can talk about size with out worrying about screwing up and getting kicked hard in the balls. With my own money, I worry about making too many mistakes and do not want to take too many risks.

[bgmb]

I think what everyone is trying to say here is eventually these investment firms/investors are going to pull the pin. It will likely be at a time when there is a bit of an extended squeeze on margins ie. prices low relative to costs.

Which could cause a bit of a Shit storm.

[Hopperbin]

Sask. how much land did the guy buy including the nice house shop bins etc. to come out to 280 per quarter? Was there a lot of bins?
It is common knowledge that these farmers paying this rent believe that they can not fail, it will be the land owner that takes the hit when things go bad, so possibly something is written in the rental agreement to protect the farmer.

[hedgehog]

i should say that back in the seventies, people i know made a lot of cash out of selling poor land to insurance companies for top dollar.
they didnt know any better.
thats why realtors offices have glass doors.

[SASKFARMER3]

hopper 17 quarters and pike management or
their super farm company will be farming
it. Some storage but no woop. Over paying
with investor money. Hm yea makes sence.
or clear as mud. OK farm dirt.

[Burbert]

Greed drives Comedian framing from hereon
in. Who cares? Wes all in it fer the
money and fame now, ain't we?

[Klause]

We rented land from investors.... I can't say they're
evil (yet).


However, they have no profit in it at all... Unless the
value keeps going up.

They buy at the asking price.

They get less than 4% back a year compared to the
initial investment, not counting interest.

They sign for a decade at a time.





I've seen an investor farm's fields in the area... I
didn't realize wild oats was a marketable
commodity. LOL.

[Burbert]

Ya big shot boys/girls feelin threatened?
Join the club, Comedia is under attack
from within, ifn the market don't get ya,
the gobermont will.......

[katoe]

aint that the truth, get in the game or quit snivelling.I thought there was only big operators on this site.