land prices

[jake550]

One fairly decent sized farm sold east of Regina just lately for $2050 a cultivated acre. That is down from $2400 in the immediate area on multiple other sales during the last year.
In my opinion it's got a long ways to drop yet before it makes sense.

[blackpowder]

Minus 15C.
My question for my area is this. With all my landlords over 70. And rents at 3-4% of market.
What's it gonna look like in 25 years?
Rented to owned ratios in district hard to guess. Increases with size of course. Boomer equity roll still coming. Talked to investment firm other day. Their still interested in Alberta. Willing to take % of revenue leases in "low" margin years.
So maybe the only thing to correct values would be flood of market from estates wanting the cash or a prolonged commodity crash. Maybe the only time land is expensive is when rental roi falls below market interest?
Not much changing hands here lately. One quarter at $1000 / ac over nearest bidder not good example. Basically still steady at $3000 /ac and $90-120 rents. Double what is 60 miles south. The fact isn't that no one is buying. The reality is that no one is selling.

[blackpowder]

After reading. Two things always amaze. How my area is over the years the most expensive as ratio of production. And how guys in lower value areas keep denying.

[jake550]

There are ALWAYS reasons why land is "cheap" in some areas. No, the grass isn't greener because the land is cheap.

[ajl]

Mallee if you are coming here to pay the big bucks you can probably buy the entire province of Sask right now. Then you could run it the way you want to.

[freewheat]

Exactly. Our land is "cheap" because of several things: Foremost being the hell of too much rain for too long, and missing the boom that apparently happened somewhere.

Second, there is no colony nearby.

Third. There has been zero investor influence.

Four. There is no oil.

Five. There is no urban pressure at all.

Six. No one around here wants to be the first to bid too stupid, because guys here are pretty smart and know it won't pay past a certain point.

Seven. Guys here remember buying land for 100 00 a quarter, only to watch it fall to 40 000, and stay there for years and years.

It is not historically the best investment one could make by a long shot.

[Mufferaw]

If the housing market is any pre-curser to land valuation housing starts in Saskatoon are off 50% year over year. Kind you average selling price is still $341K in Saskatoon.

SASKATOON – Housing starts in the Saskatoon census metropolitan area (CMA) have had a weak start in 2015, according to preliminary numbers released by the Canada Mortgage and Housing Corporation (CMHC). The report released Monday says the local market will not pick up anytime soon either.

Saskatoon CMA starts were 155 units for January compared to 202 in December 2014. In January 2014, there were 376 starts in the Bridge City area.

[jake550]

Also an average of 50 cents a bushel less for our grain from higher freight costs. $0.50 x 50 bushel average is $25/ac less income per year... year after year after year. Compared to southern MB or Alberta.

[malleefarmer]

were I live its poorer land and usually livestock as well as crops "mixed farming" we call it.
$250 to hmmm $450 per acre
yields 24 bushels wheat price on farm $220/240 per tonne on farm depending on grade

[farmaholic]

...at about two thirds of a tonne per acre and $240/tonne farmgate wheat. Thats about $160 gross per acre. That's different math than we're used to but that doesn't mean you're less profitable. We have too many parasites feeding too heavily on us in Canada!!