Land prices

[ColevilleH2S]

Every person who calls themselves a Canadian should know the history of Absentee landlords in preconfederaton PEI. Even the Wiki page on [URL="http://en.wikipedia.org/wiki/Absentee_landlord"]Absentee Landlord[/URL] is dominated by the tiny island's tale of woe.

[sk_wheatking]

once again,why would anyone want the price of land to go down when you OWN land now!?

Let me see land priced at 1500-2000 an acre.....**** that! Yes I will take that pickup truck for 85,000 that's worth NOTHING in 2 years,,,,,,,actually can I have 2 of them. I know that you have to make a living but buy what you can afford. Land is dirt cheap in sask. buy some anywhere in the u.s. , alberta,manitoba on and on and on.

[BreadWinner]

I guess where do you draw the line on farmland ownership???? Farmer only, retired farmer, widowed farmer wife, estates, farmers relatives, saskatchewan citizen, Canadian citizen, landed immigrant, pension fund, investment funds, sole investor, etc.
Hey while we're at it why don't we give it all back to our First Nations and we can rent from them, that one will make you think a while.

[phoenix64]

I don't think anyone wants the land to go down, though it will always cycle up and down relative to margins in the industry. Problem is, farmers willing to expand or new ones wanting to start are more than willing to buy up a section or a half at today's prices but are shut down by a land owner wanting to sell to one buyer, in comes the foreign entity or land investment fund with billions at their disposal and buying up blocks of land that will never be resold to farmers again but to another fund company.

[BTO_farmalll]

sf3 Farmer,

Who Was The Broker That Did That Deal????? Just Tell Me Man, Quit Playin Games Already!!!!!! Gotta Lead I am Followin Up on Next Week, But Like I Said, Just a Lead!!!!!!!!!

[ajl]

Who has an $85000 pickup? Mine is worth $20000 on a good day. Even a brand new F150 can be had for under $40000. That said, SK land is overpriced at $2000 ac. Who wants that in a place with 14 months of winter in a 12 month year and is located 10000 miles from the nearest market.

[sk_wheatking]

well,,,don't buy any then and maybe sell what you have if you feel that way. give someone a chance,sell for 40,000 a 1/4. you haven't priced out some of the dually diesels lately have you? a 2015 f150 king ranch will cost you well over 50 grand.

smarten up.

[farmaholic]

It's the extreme swings of the pendulum that cause the problems. Right now I do think its gone too far and may be coming back a bit. I don't think the bottom is going to fall out but we will likely see a bit of a correction. Not all things are equal every where. Oil, urban sprawl, commuting distance, land quality, cropping options, competitive farming neighbors, you name it.

[farmaholic]

These current land prices are for some their reward for a lifetime of having a bunch of parasites feeding off them and subsidizing the world's hungry. A golden opportunity to bow out, take it without guilt if you want it.....

[mbratrud]

Just like the futures Markets, Land needs to have outside investment to help determine fair market value and add depth to the market. How does it help any farmer to have their main asset severely devalued when times get tough? The deeper and more steady our land market is the more confidence and stability that asset becomes IMHO.

I like the Pickup analogy. Same could be said about combines and drills.

It's discouraging to try and buy land in this environment, but why should anyone think it's not fair, I have trouble with that and anyone that thinks rules should be tinkered with. Reminds me of the School yard game, and little Johnny always wants to change the rules when he's not winning.

Certainty is critical to the long term success of any business, right now land is the most stable asset on the farm. I personally I think it is a good thing if it is slightly detached from the ups and downs of the rest of the farm.

[farmaholic]

How does separating farmland prices from the economics of what its used for, making a living/growing crops, do grain producers any good.

Go to town and buy a business that costs more to operate than it can generate in income, let alone pay for itself. I don't get it??

It's the depths of some of the "investors" pockets that are shewing the values. Opportunity came a while back and some saw it when Sask's land ownership rules were relaxed. Then some were lucky enough to grow successive good crops with some good prices.

I don't want to see my equity shrink either but I think there is a reality check in store. If there is a correction, how much and how long before it reaches or goes beyond the current values again? Remember the early Eighties and how long it took to regain the lost value? Over 20 years? Will it be different this time(if there's a correction) because of relaxed land ownership rules and the economics of growing grain won't apply? Only time will reveal the future, the rest is speculation.

[mbratrud]

Obviously no matter what rules are in place land values will be determined by return on investment. The broader spectrum of land owners I believe reduces the volatility. I look at what land prices have done in the last 7 years as a catch up from the previous 20 especially in Sask. Over shoots in some areas for sure but I think it will sort itself out. As for comparisons to the eighties who knows? Time will tell. It's just very frustrating when people want government policy to push the market in their favour. In total disregard to those who have taken risks when they didn't.

[jake550]

Same reasons that land has been priced lower than other parts of North America haven't changed. And now with lower grain prices again and if they stay low it could cause some major problems for many.

[Hopalong]

Would think some will remember Sask Land Bank and efforts to to get new farmers going with limited equity. Not a roaring success.
Sask govt might think twice about getting too involved with land ownership regulation.
Agree with those who say likely or best to leave things as is.

[jake550]

Absolutely agree that the land should be owned by the families farming it. However I don't think they should ever be forced to dip into that equity to buy fertilizer, seed, chemical and equipment or to purchase more land. If land can't pay for itself on its own it's overpriced. But $400,000 for most new pieces of equipment makes even less sense.