Melville Land Sale

[cris]

looks like all the land there was under the 1000/acre level. Is that typical for that area? Are there some other reasons land traded at that mark? Excess moisture/local market/no C.P.P. buyer in attendance

[BreadWinner]

Outside investors don't like land auctions, most of these investors want a guaranteed renter for three years.

I'm not sure what farmland usually brings in this area. The two rock pickers were really worn out, that is never a good sign.
They are definitely in the wet area, valmar on heavy harrows and big fertilizer spreader.

[SASKFARMER3]

I would say that's reality of excess water. Locals are wiped out from all the shit that's happened and sick of farming. To small purchase for CPP but this is how you make money buy low for later sale. Not over pay and hope it goes higher. But CPP guy buying land wouldn't know a deal if it bit him or her in the ass.
This is the epicenter of the floods and spring snows.
Reality fed and prov support doesn't work. So all who have lucked out with he wet years if it turns dry their is shit all coming your way.
It's not top heavy clay like Indian head, but good in normal years.

[freewheat]

Along with the reasons already stated, it simply could be that farmers around there simply have not been losing it in their minds, and over bidding on land beyond the point where it is impossible to pay for.

Land around here is under 1000. Actually, when it peaked last year, it was under 1000, it is less now. Very good land, prosperous farms. No one has bitten the bullet and got carried away with overbidding and rent is all. Sure we have been nailed by weather, but honestly, no farmer has gotten carried away is the main thing.

I do seem to remember not long ago, the Melville area land owners were renting land out for no more than the taxes???

[fjlip]

Google map the land, not sure what year, but it looks like 50% sloughs, and a nightmare of corners. Only worth that. See they kept 2 quarters, the yard. Check your own and compare.

[SASKFARMER3]

2010?

I
Would say!

[SpicedRum]

Why is land at the auction in Melville going so cheap it looks wide open on Google Earth?

[freewheat]

I know if you are in a high price area, it is hard to fathom that there is still reasonably priced land. Again, if there is no outside investor pressure, and no 20 000 acre guys buying it all up, compounded by poor weather, and not the best land, it will be cheaper.

There is a lot of "cheap" sub 1000 land, for many reasons. Again, not all areas fight for land to the point of ridiculous, unrepayable from farm returns prices. Some of us refuse to play that game.

1000 dollar land does not always mean it is bad land. It can mean the farmers in the area are simply not being stupid, and are using their pencils with caution and REALISTIC NET RETURNS and repayability.

Yes, there are areas that base price and rental values, on land productivity, not on hutterite or other inflated, unrepayable from revenue potential.

This may be a surprise to some. But there are areas where land values have not gone stupid. Thankfully. I prefer realism over pie in the sky. The pie in the sky is gunna kill a lot of farms in the next bit, I believe.

[fjlip]

Checked Ritchie's Auction, the land at Dauphin sold under a 1000/ acre today also.
Any opinions on the quality there? Always heard it's great land.

[Mufferaw]

Things are allows cheaper for a reason, especially when buying on-line at an auction. Doesn't matter if it's land or equipment.

[Oilking]

No Fjlip, it's not great land. They paid way too much for it.Unless of course a guy likes picking rock and smashing his equipment. 100 acres on the 2 quarters has a layer of never-ending rock underneath. Rockiest land anywhere.

[SpicedRum]

New there was a reason decent land around here 1500-2000 an acre.

[tipsy]

I and a couple of buddies went to the sale. We were kind of surpised no one bought more than one quarter and they all sold separately.
The land may have some rocks but it can't be to bad cause a couple locals we talk too claim there is at least one hut colony moving to the area if not two...

[blackpowder]

Freewheat. Whatever the reason for the dome in your area, dont assume the rest of the world is insane. Good luck to you and recognize your advantage.

[freewheat]

Insane is a strong word. I have asked at least three times though, for help with my pencil on this site.

I need to see the paperwork and calculations that show the sense in 2000 plus dollar an acre land, and repayability based on productivity, not on pre-owned "subsidizing" land.
So far not one single person has stepped up with cash flows that make it make sense. When something does not make sense, I call it insane. lol

I do think buying something that will not produce a net return high enough to cover thee cost of the object in question is close to insane though!

I know I am in a dome, and I am appreciative of it. I am happy the guys here, even the old money guys, think enough like me, and refuse to overbid on land.