Is your farm in the realty business?

[bluefargo]

Bgmb hit the nail on the head. The idea of selling and leasing back is just bad business. I wonder what the young couple from Mossbank are doing now. When I first read their story I was incredulous. The strength of many farmers is the land they own. I know there is other business models but I still feel every farmer should own some land.
Our ancestors didn't come to this country to be serfs. Why would you give the privilege and profit of owning to someone else ?

[Nudge]

Norm has bounced around in several positions as has his wife Laura who is now with basf. I would imagine the decision was based on the value of land at the time and the possible future growth in value was not considered. They sold just before farmland really took off. It would be worth 3-5x today. Just because an idea is new or novel doesn't make it right. I can't imagine how much sleep they have lost over that. Ownership is a great store of wealth. Don't give it up.

[Nudge]

Norm has bounced around in several positions as has his wife Laura who is now with basf. I would imagine the decision was based on the value of land at the time and the possible future growth in value was not considered. They sold just before farmland really took off. It would be worth 3-5x today. Just because an idea is new or novel doesn't make it right. I can't imagine how much sleep they have lost over that. Ownership is a great store of wealth. Don't give it up.

[freewheat]

It is not a "business model". It reeks of desperation for working capital, and the desire for shiny things.

If you want shiny things, borrow against the land.

[hobbyfrmr]

I truly don't know the end result from that venture. I would imagine they gained wealth in cash and possibly non farming assets. Farming is not everything. Buying houses in Regina or Moose Jaw 15 years ago with farm income has proven to be just as rewarding as the recent uptick in land values.

[hobbyfrmr]

Oh, freewheat, next thing you will "poo poo" the good people at Input Capital Corp. providing a capital stream (and mandatory agronomic services) to progressive farmers secured only by a little bit of farmland, crop insurance, and/or life insurance.

[freewheat]

NEVER, hobby, NEVER!

[lesm]

To sell the most important asset in the world ie real estate and replace it with iron which eventually ends up at Ipsco never made any sense to me. I will continue investing in land till I'm no longer able to function. Anybody out there need a new JD tractor?

[bucket]

Lesm

They sold ipsco to the swedes SSAB. Then they sold parts of it to the Russians . Now called Evraz.

Another saskatchewan success story sold for pennies.

[Hopperbin]

Glad hobby has a hard on. Hopefully he uses it properly and expertly as he is 44. My opinion we went through some ups and downs and interrest rates with high land prices brought along rental rates that were actually higher than land payments arond here for quite a time. After the fact they did what they did at the worst possible time. I was jeallous at the time and not sure why it did not work they should have had cheap land rent fixed. Dam I would love the auditor job.