Land prices

[sk_wheatking]

well what I find odd is the fact that no other businessman cries when his asset goes up in value because he might want to expand in the future. Farmers on the other hand go nuts when their biggest asset gains value. Question:the guys that hate it because land isn't 50,000 a quarter,why aren't they selling out then at those prices? I have a feeling that anyone on here bitching about land prices would be asking maximum dollar for their life's work and investment if they were selling.

[farmaholic]

"Is land an investment or an asset that produces income?"

I think the people who both see it and use it as both have the most to gain, if they can stomach the risk!

[mbratrud]

I agree cotton.

[sk_wheatking]

By the way,couldnt have said it better myself MBGROWER!!!!!!!

[phoenix64]

Here's is an interesting angle for people to ponder....why stop at farmland investing? why not allow homeowners in cities, town and villages to sell the land that their house sits on to investment funds, cpp or anyone for that matter and rent it back? What could possibly be wrong with that

[sk_wheatking]

that happens now. its called rental units,apartment blocks and condominium projects. you must be joking right?

[BreadWinner]

They do!!!!! They own condos, apartment blocks, office buildings,malls, development land, etc,etc.
To devalue our land accets with legislation will only hurt us in the long term. It would take away a huge amount of leverage from farmers and we would be bottom dwellers again. Banks won't give you money to by inputs without collateral!!!!! If you can't afford land at today's prices start a different business Or starts saving like your parents did.

[sk_wheatking]

thank you breadwinner.

[BreadWinner]

Are some people just living with their heads in the sand, come on people get with the times. Land has to appreciate just like your inputs!!!!! The price of our commodities are the problem we just need more demand and I think that will come. There are more mouths to feed every day.

[jake550]

Unfortunately we are price takers for the products we produce and sell based on supply and demand (or so we are told). I agree land in SK deserved a little catch up in price but I think its now lost touch with the fundamentals of actually paying for it. Two years ago we were pricing new crop HRS wheat for $8.07 for fall (october 2013) delivery. Now we are at least $2.00/bushel under that. Our costs need a reality check and that includes the price of land.

[Hamloc]

Interesting debate. In our area the price of land in our area is now close to 4000 an acre. It has been driven up mostly by non farmers investing as well as investment funds and Hutterites bidding on the land. Non of these people help build communities as far as participating in local sports teams or charities. Young farmers have a hard time penciling this price. As farmers we are price takers and our inputs are controlled by near monopolies very risky. Our future rural communities and services will suffer.

[BreadWinner]

Rural towns have been on the downtrend since the 1920s. Once boomtowns are now ghost towns the trend has not changed. Better transportation and the draw of the big city has killed our small communities not the value of farmland. The rural communities have become bedroom communities due to the high cost of living in the cities they are not the economic hubs they used to be.

Inflation has pushed up the price of everything. Grain is now in the low part of the price cycle in my opinion because the supply is too much for demand but this will swing the other way quicker than most think.

[farmaholic]

Hamloc, $4000/ac???? Where? Adjacent to Calgary(development potential and speculation)? Farmland? Hard to believe you could grow regular field crops and ever make that pay even over the longterm? Will be a LONG time before that is a reality here.

[phoenix64]

Looks like ur beginning to understand wheat king!

[phoenix64]

Breadwinner how will legislation devalue farmland? Farmland was bid higher in 1980 with 2013 dollars adjusted for inflation, this when out of province investors could only own 320 acres and foreigners 10 acres?