Latest sale around here was well under 1000 bucks, and I thought that was stupidly high.
Shows how hard relatively that our area has been hit with weather issues, as well as there is no pressure from investors around here thankfully.
It may also show however, that the guys around here show restraint, and are only willing to pay an amount if it makes sense, and pays its own way.
And this is in an area where there are 10 young, under 40 farmers within an 8 mile radius. Rent is 30 to 40 bucks, no one will be the guy who gets blamed for stupidity I guess.
We farmers around here, seem to have collectively refrained from being silly, which I think some of the numbers you guys are putting forth are...
Silly for three reasons:
That some think land will always go up in value, given the history of Saskatchewan productivity issues, and climate, relative to the rest of the world.
That some seem to have forgotten what happened last time there was a rise in land values. It took over 30 years to actually get back to late 1970's levels, the interim in which during land prices, they CRASHED.
And the third reason it is silly, is if one could get 300 grand to a half million a quarter, why would one farm? I mean really? I would be gone in a heartbeat, and I don't even own much land compared to most guys on here.
No wonder back when we were comparing costs and some thought mine were too low, some got persnickety about it.
I dunno, to me land is worth what it can produce, not in a string of 3 or 4 good years some seem to have had, but over the course of 20 or so years.
Anyone have a repayment pencil to show with proper crop rotation, how 2 and 3 thousand dollar land pays its way. And no, I am not talking about subsidizing with other land. I am saying you go and normally buy a quarter of land for 300 g's, and borrow 75% of the funds. No old money, no daddy cosigning. Just a guy going to the bank for more than 200 g's, after some-the-heck-how coming up with 80 g's after tax to put down.
I mean, you are looking at around 100 bucks an acre in payments each year for 20 years.
Pencil it for me?
Am I so far gone here?
Shows how hard relatively that our area has been hit with weather issues, as well as there is no pressure from investors around here thankfully.
It may also show however, that the guys around here show restraint, and are only willing to pay an amount if it makes sense, and pays its own way.
And this is in an area where there are 10 young, under 40 farmers within an 8 mile radius. Rent is 30 to 40 bucks, no one will be the guy who gets blamed for stupidity I guess.
We farmers around here, seem to have collectively refrained from being silly, which I think some of the numbers you guys are putting forth are...
Silly for three reasons:
That some think land will always go up in value, given the history of Saskatchewan productivity issues, and climate, relative to the rest of the world.
That some seem to have forgotten what happened last time there was a rise in land values. It took over 30 years to actually get back to late 1970's levels, the interim in which during land prices, they CRASHED.
And the third reason it is silly, is if one could get 300 grand to a half million a quarter, why would one farm? I mean really? I would be gone in a heartbeat, and I don't even own much land compared to most guys on here.
No wonder back when we were comparing costs and some thought mine were too low, some got persnickety about it.
I dunno, to me land is worth what it can produce, not in a string of 3 or 4 good years some seem to have had, but over the course of 20 or so years.
Anyone have a repayment pencil to show with proper crop rotation, how 2 and 3 thousand dollar land pays its way. And no, I am not talking about subsidizing with other land. I am saying you go and normally buy a quarter of land for 300 g's, and borrow 75% of the funds. No old money, no daddy cosigning. Just a guy going to the bank for more than 200 g's, after some-the-heck-how coming up with 80 g's after tax to put down.
I mean, you are looking at around 100 bucks an acre in payments each year for 20 years.
Pencil it for me?
Am I so far gone here?
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