Redland....

[farmaholic]

Directed at SF3, is there any truth than Redland is folding their tent?

[SASKFARMER3]

Yes but not folding like one thinks! Sold to Ontario teachers pension fund for big dollars
Good for them! Way to go! Rent for three, give it ip it back for half price!

[farmaholic]

Whose to say they'll get it back after the 3 year lease? But does it really matter? This is where emotions didn't override business....Smart.

[SASKFARMER3]

Yes a very smart decision! Very smart! Take the pay day!

[farmaholic]

Especially if there is no one to pass the baton to in the relay race....

[fjlip]

Even If there is, take payday!

[Hopperbin]

Sellers have done that in the past and it sorta backfired Some of the time. Offer high rent for three years to get a better selling price. At least klause rents for ten years. Any clause in that one klause? Haha I am funny. I laugh at my own joke. But what is the details of this one? Any numbers?

[SASKFARMER3]

My best guess is 70 x 342857 = 24 mill and then 1 for yard.
Rent back for 3 who cares what it is you have their money.

[Oliver88]

How can $2000 per acre be justified in eastern Saskatchewan?

Sounds like the Ontario pension plan is late getting into agriculture.

[blackpowder]

Perhaps the same way $4000 / acre can be justified in Eastern Alberta?

[farmaholic]

Deep pockets full of cash or people with high "off farm" earning potential skew the values. I've never really done the math but can that land pay for "itself"?

[farmaholic]

Oops, forgot to LOL in the last post.

[farmaholic]

$4000/ac dirt with a $200k downpayment with the balance @ 4% is only $110/acre interest only.

$2000/ac dirt with a $100k downpayment with the balance @ 4% is only $55/acre interest only.

Do your own math with your own numbers....

[SASKFARMER3]

The owner of Redlands has very deep pockets very deep and he's a nice guy!
I Like the one about Alberta at 4000!

[blackpowder]

The price is of course whatever someone will pay. I'm not sure if it's ever been relevant to its productive value, at least not in my career. The better question is how many paid acres are supporting the debt on it. Your $110 is currently in our rental range on 50ish bushel land.
4th generation businesses. Generational equity transfers, life insurance etc. Successful off farm patch businesses.
Relatively stable cropping area. The price will not be going down any time soon! Even though there will be only 5 outfits within 15 miles around. There is outfits with fixed costs $100 per acre less than others. Throw in some 1950 dollars and you can farm below cop for 10 years. That's what it will take for it to fall %30. Or for rents to fall below 3 to 4 % of market value per acre. By then I won't be around.
Simply supply and demand. Hope it goes to $10,000.